Duke Energy Q4 Profit Tops View

(RTTNews) - Electric utility Duke Energy Corp. (DUK) Tuesday reported increased earnings for the fourth-quarter, helped by a significant increase in revenues at the Regulated Utilities business. Adjusted earnings topped Wall Street estimates.

Charlotte, North Carolina-based Duke Energy reported net income attributable to the company of $688 million, up from $435 million in the prior year. Earnings per share climbed to $0.97 from $0.62 in 2012.

Adjusted earnings per share was $1.00, while it totaled $0.70 for the fourth quarter of 2012. On average, 14 analysts polled by Thomson Reuters expected earnings per share of $0.95 for the quarter. Analysts' estimates typically exclude one-time items.

The company achieved lower costs during the quarter through synergies realized from the 2012 merger with Progress Energy, recovered infrastructure modernization costs through revised customer rates and benefited from the adoption of nuclear outage cost levelization in the Carolinas.

Operating revenues in Regulated Utilities advanced to $5.144 billion from $4.873 billion. Regulated Utilities, formerly called U.S. Franchised Electric and Gas, recognized adjusted segment income, a non-GAAP financial measure, of $607 million, compared to $498 million last year.

These results benefited from lower operating and maintenance expenses, increased pricing and riders as well as favorable weather.

International Energy's operating revenues improved to $378 million from $368 million. The division reported adjusted segment income of $108 million, compared to $89 million last year, primarily due to stronger results in Latin America as a result of higher volumes and pricing as well as lower purchased power costs in Brazil.

Dividend for the fourth quarter was $0.78, compared to $0.765 last year. For the full year, net income attributable to Duke Energy increased to $2.67 billion from $1.77 billion. Operating revenues climbed to $24.598 billion from $19.624 billion. Analysts expected earnings of $4.32 per share on revenues of $24.78 billion.

Lynn Good, CEO, said, "Our company demonstrated tremendous focus and discipline in 2013. As a result, we achieved the mid-point of our earnings per share guidance range, increased the dividend, and exceeded our original target of 5 to 7 percent in non-fuel operating and maintenance savings.'' Looking ahead, the company expects adjusted earnings per share for 2014 in the range of $4.45 to $4.60. Analysts expect earnings per share of $4.57 for 2014.

The firm also updated through 2016 its longer-term 4 to 6 percent average annual growth in adjusted earnings per share based upon the midpoint of the original 2013 adjusted earnings per share guidance range of $4.20 to 4.45.

DUK closed at $71.45 on Friday.