Piedmont Natural Gas Q2 Profit Rises, Results Top Estimates; Backs FY View

(RTTNews) - Piedmont Natural Gas Co. Inc. (PNY) Friday reported higher second-quarter profit, on 16 percent growth in revenues and improved margins. Earnings per share as well as revenues topped analysts' expectations. The natural gas distributor also backed its earnings outlook range for fiscal 2014, with emphasis at the upper end of the range.

For the second quarter ended April 30, the company posted net income of $62.54 million or $0.80 per share, up from $55.79 million or $0.74 per share in the previous year.

On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.75 per share for the quarter. Analysts' estimates typically exclude special items.

Operating revenues for the quarter rose 16 percent to $462.25 million from $399.41 million in the prior-year period, and came above consensus estimate of $427.95 million.

Margin improved 15 percent from a year ago. The company attributed the improvement in margin mainly to customer growth, regulatory rate adjustments, increased transportation services in power generation markets, and higher margin sales from secondary market activity.

The company's operations and maintenance expenses were $70.19 million, higher than $65.04 million in the preceding year, that reflected increases in payroll and approved amortization of regulatory assets, partially offset by a decrease in employee benefits expense.

Utility interest charges climbed to $12 million from $3.3 million due to an increase in interest expense on long-term debt.

For fiscal 2014, the company still expects earnings of $1.80 to $1.90 per share. Analysts currently expect earnings of $1.86 per share for the year.

PNY closed Thursday's regular trading at $36.23, up 2.14 percent on the NYSE.