By Dow Jones Business News, October 31, 2013, 08:00:00 AM EDT
By Nathalie Tadena
PPL Corp.'s ( PPL ) third-quarter earnings rose 15% as the public utility reported increased profits for its regulated
utilities, though its supply segment's results were hurt by lower energy prices.
The company raised the low end of its full-year earnings from ongoing operations outlook by five cents, now expecting
a per-share profit of $2.30 to $2.40 a share.
PPL has been aiming to increase its presence in regulated-power markets as wholesale generators across the industry
have been hurt by stubbornly low natural-gas prices. The company more than doubled the number of PPL's regulated utility
customers through the 2011 acquisition of two Kentucky utilities and an electric-distribution business in the U.K.Midlands.
For the latest period, PPL reported a profit of $410 million, or 62 cents a share, up from $355 million, or 61 cents a
share, a year earlier. Excluding some hedging-related activity, acquisition-related adjustments and other items,
earnings from ongoing operations slipped to 66 cents from 72 cents.
Revenue increased 29% to $3.11 billion.
The latest period included a $49 million loss from hedging activity, compared with a prior-year period loss of $716
Analysts surveyed by Thomson Reuters expected a profit of 68 cents a share on revenue of $3.31 billion.
Earnings from ongoing operations in the supply segment--primarily the competitive electricity generation and energy-
marketing operations of PPL Energy Supply--fell to 14 cents a share from 26 cents a share as a result of lower baseload
energy prices, lower baseload generation and higher operation and maintenance expense.
Ongoing operations from the company's U.K. regulated operations improved to 31 cents a share from 28 cents a share,
due to higher electricity delivery prices and lower income taxes.
The Kentucky and Pennsylvania regulated segments' earnings both increased by two cents, to 14 cents and eight cents a
share, respectively. The increases were due to higher base rates.
Shares closed at $30.77 and were inactive premarket.
Write to Nathalie Tadena at firstname.lastname@example.org
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