TECO Energy, Inc.
) announced fourth-quarter 2013 operating earnings of 21 cents
per share in line with the Zacks Consensus Estimate. Earnings
were however 2.6% below the year-ago figure. The decline reflects
higher fuel costs and mining related expenses.
2013 earnings of 95 cents surpassed the Zacks consensus
estimate of 94 cents by 1 cent. However, current year earnings
showed a decline of 17.1% compared to 2012 earnings.
Total revenue at TECO Energy at the end of the fourth quarter
was $0.68 billion, surpassing the Zacks Consensus Estimate of
$0.67 billion by 2.4% and level with the year-ago
Reported revenues of $2.9 billion for 2013 marginally
surpassed the Zacks Consensus Estimate of $2.8 billion by 0.2%.
Revenues for 2013 declined by 4.8% compared to last year
Total operating expenses in fourth quarter increased 1.7% year
over year to $0.59 billion.
Net Income in the reported quarter was $44.4 million down 2.6%
from the comparable year ago period.
Segment net income was $39.8 million, up 9.9% from $36.2 million
in the year-ago quarter. The upside can be attributed to base
rate settlement, higher energy sales due to favourable weather
and lower depreciation and interest expense. However, this growth
was partially offset by higher operations and maintenance
Segment net income was up 7.0% year over year to $7.6 million due
to customer growth of 1.2% in the reported quarter and a decline
in depreciation and amortization expense.
Segment income was $6.7 million compared with $10.8 million
during the prior-year period, depicting a decline of nearly
Cash and cash equivalents of the company as of Dec 31, 2013,
were $185.2 million, down from $200.5 million as of Dec 31,
Capital expenditure in the reported quarter was $161.5
million, up from $149.9 million spent in the fourth quarter of
Cash flow from operating activities during the fourth quarter
was $152.5 million, up from $149.1 million during the prior-year
TECO Energy provided consolidated earnings per share guidance
for 2014 in the band of 95 cents to $1.05.
Peoples Gas maintains its expectation to earn above the
mid-point of its allowed Return on Equity (ROE) range of 9.75% to
11.75%. The segment expects to benefit from moderate customer
growth and customer switching from other sources of fuel to
Tampa Electric expects to earn in the mid range of its
authorized allowed ROE range of 9.25% to 11.25%. This primarily
is expected to be driven by the September rate case settlement
and base revenues on $50.0 million in 2014.
TECO Coal has 80% of its expected sales contracted for 2014
and another 15% committed but unpriced, and 5% unsold.
Brookfield Infrastructure Partners L.P.
) is slated to release its fourth-quarter 2013 earnings on Feb 5,
2014. The Zacks Consensus Estimate is 85 cents.
Black Hills Corporation
) is slated to release its fourth-quarter 2013 earnings on Feb 6,
2014. The Zacks Consensus Estimate is 66 cents.
) is slated to release its fourth-quarter 2013 earnings on Feb
14, 2014. The Zacks Consensus Estimate is 84 cents.
In 2013, TECO Energy was able to register a 1.3% increase in
natural gas customer and 1.8% increase in electricity customers
from 2012 levels. We believe the ability of the company to expand
its customer base will have positive impact on its performance
TECO Energy currently has a Zacks Rank #3 (Hold).
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