Loews' earnings in the fourth quarter surpassed the Zacks Consensus
Estimate but lagged year over year on lower investment income. Top
line declined year over year on lower insurance premiums,
investment income and contract drilling revenues. On the other
hand, expenses decreased on lower insurance claims &
policyholders' benefits as well as contract drilling expenses.
Loews remains on track to strengthen its hotel business by doubling
its hotel count within the next two to four years and expects to
triple its net income by 2015. Though Diamond Offshore continues to
improve its fleet, a weakening ultra-deep-water and deep-water
market will dampen results. It also witnessed lower rig utilization
in the quarter. Boardwalk remains on track to expand the existing
pipeline infrastructure as market condition improves. The
acquisitions of HP Storage and Louisiana Midstream support its
strategy to focus on diversification, to become less dependent on
its base gas transportation business. A strong balance sheet with
low leverage and adequate cash along with strong rating scores are
among the positives.
Based in New York, Loews Corporation (L) is a diversified
holding company. Loews' principal subsidiaries are:
CNA Financial Corporation (CNA), which is the 14th largest
property-casualty insurer in the U.S., provides standard commercial
lines, specialty lines (specialty property-casualty, professional
and financial), surety, marine and other property and casualty
coverage as well as life and group insurance coverage. 90.0% of CNA
is owned by Loews. This insurance provider contributed 67% of
Loews' full-year 2013 revenues.
Diamond Offshore Drilling Inc. (DO), which owns and operates 49
offshore drilling rigs on a contractual basis for oil and gas
exploration and production companies. Loews currently owns a 50.4%
stake in DO, which accounted for 19% of full-year 2013
Boardwalk Pipeline Partners LP (BWP), approximately 66.0% is
owned by Loews. Through its subsidiaries, Boardwalk Pipeline is
engaged in the operation of interstate natural gas pipeline
systems. The company derived 8% of full-year 2013 revenues.
Boardwalk Pipeline conducts all of its operations through its three
operating subsidiaries Gulf Crossing Pipeline Company LLC, Gulf
South Pipeline Company LP and Texas Gas Transmission LLC.
HighMount Exploration & Production LLC, also a wholly owned
subsidiary, engaged in natural gas and oil exploration and
production operations located in the Permian Basin in Texas, the
Antrim Shale in Mich. and the Black Warrior Basin in Ala. In Apr
2010, HighMount sold its exploration and production assets located
in the Antrim Shale in Mich. and entered into a definitive
agreement with another purchaser to sell its exploration and
production assets located in the Black Warrior Basin in Ala. This
operation contributed 2% of full-year 2013 revenues.
Loews Hotels Holding Corporation, a wholly owned subsidiary that
owns and operates 19 hotels in U.S. and Canada, generated 3% of
full-year 2013 revenues.
Loews Corporation (L): Read the Full Research
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