Natural gas company Spectra Energy Corp. (SE) on Thursday posted higher profit for the fourth quarter, boosted by improved commodity prices, stronger Canadian dollar as well as a better performance at its Western Canada Transmission & Processing segment. Moreover, ongoing earnings per share rose from last year and came in line with the Street view. The company also reaffirmed its earnings forecast for the full-year 2010.
The Houston, Texas-based company's fourth-quarter net income from controlling interests was $219 million or $0.34 per share, compared to $171 million $0.28 per share in the year-ago quarter.
Ongoing net income from controlling interests for the latest quarter rose to $217 million or $0.33 per share from $197 million $0.32 per share in the same quarter of last year.
On average, 14 analysts polled by Thomson Reuters expected the company to post earnings of $0.33 per share for the quarter. Analysts' estimates typically exclude special items.
The company noted that the most recent quarter results reflect the effects of improving commodity prices, a stronger Canadian dollar and increased gathering and processing revenues at Western Canada Transmission & Processing.
Net income rose to $239 million from $187 million a year earlier. Income from continuing operations amounted to $237 million versus the last year's income of $184 million.
Quarterly operating revenues advanced to $1.298 billion from the previous year's revenue of $1.261 billion, and surpassed the $1.22 billion revenue consensus estimate of six Street analysts.
Greg Ebel, president and chief executive officer of Spectra Energy, said, "We experienced solid earnings and strong performance from our core, fee-based businesses last year. We also executed extremely well on our capital expansion projects and signed multiple new customer contracts, which will fuel continued growth. We finished the year financially strong and that momentum gives us confidence in our ability to achieve 20 percent earnings growth this year."
The company's U.S. Transmission segment generated fourth-quarter operating revenues of $444 million, an increase from $395 million reported a year earlier. Distribution segment fetched quarterly operating revenues of $509 million, a decline from the previous year's revenue of $558 million.
Fourth-quarter operating revenues from the Western Canada Transmission & processing unit grew to $345 million from $308 million reported in the comparable quarter of the previous year.
During the recent quarter, operating expenses fell to $918 million from $967 million incurred in the prior-year period, primarily due to the benefit of interest rate swaps and lower commercial paper balances, partially offset by the effects of a stronger Canadian dollar during the 2009 quarter.
Operating income increased to $380 million from $304 million in the fourth quarter of 2008.
Net income from controlling interests for fiscal 2009 totaled $848 million or $1.32 per share, compared to $1.13 billion or $1.81 per share in 2008.
Ongoing net income from controlling interests dropped to $758 million or $1.18 per share from $1.14 billion or $1.83 per share reported in the previous year. Analysts expected earnings of $1.18 per share for the full year.
Income from continuing operations decreased to $923 million from $1.19 billion last year. Net income for the year 2009 totaled $923 million, down from the previous year's $1.194 billion.
Annual operating revenues for the full-year 2009 declined to $4.55 billion from $5.07 billion reported in the year ended December 31, 2008. Seven Wall Street analysts had a consensus revenue estimate of $4.43 billion for fiscal 2009.
Looking ahead, the company continues to project ongoing earnings of $1.42 per share for fiscal 2010, while analysts are looking for earnings of $1.48 per share. The company further said it still expects compound annual earnings per share growth rate of 8% - 10% for 2010-2012.
Ebel stated, "We will continue our focus on securing new growth opportunities for the future, as well as executing on our current portfolio of attractive expansion projects - projects that will deliver returns in excess of 12 percent, and that underpin our strong, sustainable earnings growth."
SE shares, which have been trading between $11.21 and $23.06 in the past 52 weeks, closed Wednesday's trading session at $21.70, down 28 cents or 1.27%.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.