By Debbie Cai and Nathalie Tadena
Consolidated Edison Inc.'s (ED) fourth-quarter earnings rose
8.9% as the utility company recorded a mark-to-market gain from its
competitive energy businesses and a smaller tax expense, though
revenue was about flat from a year earlier.
ConEd expects earnings from ongoing operations for the year
between $3.65 and $3.85 a share, mostly below the $3.83 estimate
from analysts polled by Thomson Reuters.
"Our regulated utilities and competitive energy businesses
continued to perform well in 2012," Chairman and Chief Executive
Kevin Burke said Thursday.
New York Attorney General Eric Schneiderman in November began
investigating ConEd and Long Island Power Authority over the
utilities' preparedness and response to superstorm Sandy, The Wall
Street Journal reported citing a person familiar with the
inquiries. The attorney general's scrutiny of New York's largest
suppliers of electricity came amid widespread public anger over the
prolonged power failures that followed the storm.
The utility, which serves the New York metropolitan area, said
Thursday it faced an unprecedented challenge with superstorm Sandy
and will work with government leaders and community organizations
to implement new investments and strategies in the wake of the
storm.
The company also raised its dividend by a penny to 61.5 cents a
share, as it looks to increase shareholder return.
In the latest period, ConEd posted a profit of $207 million, or
70 cents a share, up from $190 million, or 65 cents a share, a year
earlier. Excluding mark-to-market gains in the latest period and
mark-to-market losses in the year-ago quarter, per-share earnings
slipped to 69 cents from 74 cents.
Analysts polled by Thomson Reuters had predicted per-share
earnings of 73 cents a share.
Total operating revenue edged down 0.5% to $2.9 billion, while
analysts had expected $3.35 billion.
Revenue from the electric business--ConEd's largest top-line
generator by far--increased 1%. Gas revenue increased 7.5%, while
steam revenue climbed 2.8%. Nonutility revenue slipped 22%.
Operating expenses slipped 0.3% while the company's income-tax
expense fell 19% to $100 million.
Shares closed at $56.88 and were unchanged after hours. The
stock is off 5.8% over the past three months.
Write to Debbie Cai at debbie.cai@dowjones.com and Nathalie
Tadena at nathalie.tadena@dowjones.com
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