Duke Energy's Profit Falls Short of Expectations
February 18 2016 - 8:50AM
Dow Jones News
Duke Energy Corp.'s profit increased in its latest quarter but
fell short of expectations amid warmer weather in some of its
markets.
The Charlotte, N.C.-based company operates utilities that serve
millions of customers in the South and Midwest, and late last year
it struck a $4.9 billion deal to buy Piedmont Natural Gas in a move
to beef up its gas assets.
This month the company put its struggling international energy
business line up for sale—an attempt to shed a unit hit by a
stronger U.S. dollar and an intensifying rout in energy prices.
In the fourth quarter, Duke's international business reported a
5.6% decline in income. The unit was pressured by lower methanol
prices, partially offset by an improvement in its Brazilian
operations.
Meanwhile, Duke's regulated utilities segment, its biggest, saw
earnings rise to $601 million from $551 million a year earlier.
Higher pricing and updated contracts with more favorable margins
buoyed the business, countering the effect of record warm weather
in the Carolinas and across the Midwest.
In all for the fourth quarter, Duke reported a profit of $477
million, or 69 cents a share, up from $97 million, or 14 cents a
share, a year earlier. Excluding discontinued operations, among
other items, earnings per share rose a penny to 87 cents, short of
the 91 cents analysts predicted.
Duke offered 2016 guidance on Thursday, forecasting $4.50 to
$4.70 in adjusted earnings per share. That compares with the $4.54
posted in 2015 and it brackets the average analyst estimate of
$4.66.
Shares in the company, up 5.8% since the start of the year, were
inactive premarket.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
February 18, 2016 08:35 ET (13:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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