WGL Holdings Slips To Loss In Q4; Sees 2014 Earnings Below View

(RTTNews) - WGL Holdings, Inc. (WGL), the parent company of Washington Gas Light Co. and other energy-related subsidiaries, reported a loss for the fourth quarter on lower revenues at its utility as well as non-utility segments, in addition to higher operating expenses.

The results for the quarter missed analysts' expectations. Looking ahead, the company forecast operating earnings below analysts' expectations.

The Washington, D.C.-based company's net loss for the fourth quarter was $51.6 million or $1.00 per share, compared to net income of $7.7 million or $0.15 per share in the year-ago period.

Excluding items, operating loss for the quarter was $28.2 million or $0.55 per share, compared to operating loss of $5.0 million or $0.10 per share for the same quarter of the prior year. On average, seven analysts polled by Thomson Reuters expected the company to report loss of $0.34 per share for the quarter.

Operating revenues for the quarter declined 2 percent to $409.90 million from $419.78 million in the prior-year quarter. Analysts had a consensus revenue estimate for the quarter of $437.52 million.

Utility revenues declined 1 percent from the year-ago period to $122.33 million, while non-utility revenues decreased 3 percent to $287.58 million.

Meanwhile, operating expenses for the quarter increased 19 percent from last year to $485.04 million.

WGL Holdings' regulated utility segment reported a seasonal net loss for the fourth quarter that widened to $39.7 million or $0.77 per share from net loss of $1.2 million or $0.02 per share in the year-ago period.

The retail energy-marketing segment reported net income of $2.5 million or $0.05 per share, down from $14.4 million or $0.28 per share in the year-ago quarter.

The wholesale energy solutions segment has been renamed the midstream energy services segment. The segment's net loss widened to $11.8 million or $0.23 per share from $5.6 million or $0.11 per share in the same period last year.

However, the commercial energy systems segment reported net income of $1.1 million or $0.02 per share, up from $0.9 million or $0.02 per share in the previous-year quarter.

For the fiscal year ended September 30, 2013, WGL Holdings' net income declined to $80.3 million or $1.55 per share from $139.8 million or $2.71 per share in the prior year. Adjusted operating earnings were $119.8 million or $2.31 per share, compared to $138.4 million or $2.68 per share last year.

Total operating revenues for the year rose 2 percent to $2.47 billion from $2.43 billion in the previous year.

Analysts expected the company to report earnings of $2.52 per share for the year on revenues of $2.54 billion.

Looking ahead to fiscal 2014, WGL Holdings forecasts reported earnings in a range of $2.22 to $2.42 per share. This estimate includes projected fiscal year 2014 earnings from regulated utility segment in a range of $1.90 per share to $2.00 per share and earnings from non-utility business segments in a range of $0.32 per share to $0.42 per share.

The company also forecast full-year operating earnings in a range of $2.15 per share to $2.35 per share.

Street expects the company to earn $2.67 per share for the year.

WGL closed Wednesday's trading at $44.84, up $0.60 or 1.36 percent on a volume of 161,438 shares.