Piedmont Natural Gas Q3 Loss Narrows On Higher Margins, Lower Costs

(RTTNews) - Piedmont Natural Gas Co. Inc. (PNY) on Thursday reported a loss for the third quarter that narrowed from last year on higher revenue, increase in utility margin and lower gas costs. Loss per share for the quarter was narrower than analysts' expectations, while revenues missed their estimates.

Looking ahead to fiscal 2013, the natural gas distributor reaffirmed its earnings outlook and now expects earnings to be near the upper end of the range.

Utility margin for the third quarter increased $12 percent from the year-ago period to $97.00 million. The increase in margin is primarily attributable to customer growth and increased volume deliveries in the residential, commercial, and industrial markets due to colder winter weather, in addition to increased transportation services in the power generation markets following the successful completion of the Sutton project.

Piedmont's net loss for the third quarter narrowed to $2.29 million or $0.03 per share from $4.61 million or $0.06 per share in the same period last year. On average, six analysts polled by Thomson Reuters expected the company to report loss of $0.08 per share for the quarter. Analysts' estimates typically exclude special items.

Operating revenues for the quarter increased 1 percent to $162.94 million from $161.12 million last year. Analysts had a consensus revenue estimate of $181.49 million.

Cost of gas declined 12 percent from the year-ago period to $65.94 million. Operations and maintenance costs for the quarter increased 6 percent to $62.95 million, reflecting increases in utilities, employee benefits, contract labor and other miscellaneous expenses.

Looking ahead to fiscal 2013, Piedmont reaffirmed its earnings outlook in a range of $1.67 to $1.77 per share, and now expects earnings to be near the upper end of the range. Analysts currently expect earnings of $1.73 per share for the year.

Piedmont's board of directors declared a quarterly dividend of $0.31 per share on the company's common stock, payable on October 15 to shareholders of record at the close of business on September 24.

Separately, Piedmont said it has promoted Keith Maust to the post of Vice President - Gas Supply and Pipeline Services. Maust previously served as managing director of Gas Supply and Wholesale Marketing for the company.

In his new role, Maust will be responsible for gas supply and pipeline capacity acquisition, the company's gas supply planning and hedging activities, federal energy regulatory matters, and gas scheduling. He will report to Frank Yoho, Piedmont's Senior Vice President and Chief Commercial Operations Officer.

Piedmont also said it has elected Michael Tarwater to the company's board, effective November 1, 2013. Tarwater is chief executive officer of Carolinas HealthCare System, a multi-faceted system that owns and manages hospitals, nursing homes, physician practices and outpatient diagnostic and treatment facilities in both North and South Carolina.

PNY closed Thursday's regular trading session at $31.96, down $0.05 or 0.16 percent on a volume of 194,238 shares.