PG&E Corp 3Q Profit Jumps 4.6% On CapEx Investments
DOW JONESNEWSWIRES
PG&E Corp.'s (PCG) third-quarter profit rose 4.6%, beating analysts'
estimates, as the company saw additional revenue because of infrastructure
investments.
PG&E said it has spent $3 billion on infrastructure so far this year,
increasing its earning potential. The utility's profits are more insulated from
slumping power demand because state regulation decouples returns from power
sales.
PG&E, which has about 15 million customers in central and northern California,
has worked to stem unpaid bills during the economic downturn in the state with
home-foreclosure rates among the nation's highest.
PG&E reported profit of $321 million, or 83 cents a share, up from $307
million, or 83 cents, a year earlier. On a non-GAAP basis, the company earned 93
cents a share compared with 83 cents.
Revenue fell 12% to $3.23 billion.
Analysts polled by Thomson Reuters had most recently forecast earnings of 91
cents a share on $3.48 billion in sales.
Operating margin rose to 18.8% from 17.4%.
The utility's electricity sales declined 8.7%, and its natural gas revenue saw
a 23.8% drop.
The company said Monday that it agreed to buy solar energy from two California
projects as it looks to build its alternative-energy sources as the company
looks for ways to boost renewable-energy development to meet government mandates
and amid speculation about federal taxes on carbon use and carbon-dioxide
emissions.
Shares of PG&E, which reiterated its earnings guidance for 2009, 2010 and
2011, were down eight cents at $41.47 early Thursday.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@
dowjones.com;
Order free Annual Report for PG&E Corporation
Visit http://djnewswires.ar.wilink.com/?link=PCG or call 1-888-301-0513
(END) Dow Jones Newswires
10-29-090953ET
Copyright (c) 2009 Dow Jones & Company, Inc.
|