Public Service Enterprise Group Inc. (PEG) first-quarter
earnings rose 11% on mark-to-market impacts, while
harsher-than-normal weather hurt results at its electric utility
and weak prices more than offset volume growth at its generation
business.
The results missed analysts' expectations.
PSEG, like many other U.S. utilities, has struggled with slowing
demand and slumping wholesale power prices during the economic
downturn. Chairman and Chief Executive Ralph Izzo in February said
despite signs of the economy stabilizing, pricing in its markets
remains difficult.
The company's results were also hurt by a severe wind and rain
storm in March, he said Wednesday.
During the latest period PSEG's utility operation, Public
Service Electric & Gas, posted an 4.9% decline in earnings on
higher maintenance costs resulting from the storms, while power
consumption was flat on a weather-normalized basis.
Earnings for PSEG's generation business, which sells power at
market prices rather than regulated rates, fell 15% as weak power
prices more than offset 7% volume growth. Power generators in
deregulated markets remain under pressure from weak natural gas
prices.
PSEG reported a profit of $491 million, or 97 cents a share,
from $444 million, or 88 cents a share, a year earlier.
Excluding mark-to-market and other impacts, operating earnings
fell to 84 cents from 95 cents as revenue decreased 6.1% to $3.68
billion.
Analysts polled by Thomson Reuters most recently forecast
earnings of 86 cents on revenue of $4.02 billion.
Shares of PSEG closed Tuesday at $32.15 and were inactive
premarket. The stock is down 3.3% this year as power producers have
been underperforming the broader market.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com;