Duke Energy Q3 Profit Rises, Backs Full-year View

(RTTNews) - Electric utility Duke Energy Corp. (DUK) Wednesday reported higher third-quarter profit, helped by increased revenues, as well as reversal of an impairment charge. The firm also backed its adjusted earnings outlook for full year 2014.

"Although the weather this summer was milder than usual, we remain on track to meet our financial objectives for 2014 and beyond," said President and CEO Lynn Good. He also noted that the company continues to move forward with sale of Midwest generation business to power producer Dynegy Inc. (DYN).

In August end, Dynegy had signed two separate definitive agreements to acquire the ownership interests in certain Midwest generation assets from Duke Energy, as well as EquiPower Resources Corp and Brayton Point Holdings, LLC from Energy Capital Partners or ECP. The purchase price is $2.8 billion cash for Duke assets and $3.45 billion for ECP assets.

For the third quarter, net Income attributable to the company increased to $1.27 billion from $1.0 billion in the prior year. Earnings per share attributable to shareholders were $1.80, up from $1.42 per share last year.

The company said reported results for the recent quarter included a pre-tax reversal of an impairment charge originally taken in the first quarter based on the estimated fair value of the Midwest generation business.

The reversal of $477 million or $0.43 per share, is the result of the fair value exceeding the previous estimate. This impairment reversal was recorded in discontinued operations.

Earnings from continuing operations declined to $1.25 per share from $1.33 per share a year earlier. Adjusted earnings for the recent quarter totaled $1.40 per share, while the firm posted $1.46 for the third quarter of 2013.

On average, 13 analysts polled by Thomson Reuters expected the company to report profit per share of $1.52 for the quarter. Analysts' estimates typically exclude special items.

Total operating revenues for the quarter grew to $6.40 billion from $6.22 billion a year ago. Analysts expected revenue of $7.21 billion for the quarter.

Regulated electric revenues were $5.86 billion, up from $5.69 billion in the same period last year. Non-regulated electric, natural gas, and other totaled $449 million, unchanged from last year.

Total operating expenses advanced to $4.78 billion from $4.56 billion in the preceding year.

Duke Energy stated that it remains on track to achieve 2014 adjusted earnings guidance range of $4.50 to $4.65 per share. Analysts expect the company to report 2014 earnings per share of $4.59.

DUK closed Tuesday's trading at $82.23. In the pre-market activity on Wednesday, the shares are down 1.50 percent.