UPDATE: PSEG 1Q Net Slips On Investment,Mark-To-Market Losses
04 Mai 2009 - 7:51PM
Dow Jones News
Public Service Enterprise Group Inc. (PEG) reported Monday that
its first-quarter profit slipped 0.9% on investment and
mark-to-market losses as the New Jersey-based electricity company
deals with lower demand at its power-generation and utility
businesses.
Still, the company has been able to manage through weakened
usage with lower fuel costs and steps taken to minimize other
costs. PSEG's earnings handily topped analysts' expectations, and
the company reiterated its 2009 earnings view.
Shares of PSEG recently traded down 25 cents at $30.90.
PSEG posted earnings of $444 million, down from $448 million, a
year earlier. Per-share earnings were flat at 88 cents. Excluding
investment and mark-to-market impacts, earnings from continuing
operations rose to 95 cents a share from 86 cents. Analysts polled
by Thomson Reuters were looking for 80 cents a share.
Revenue figures weren't provided by PSEG in a press release
detailing the quarterly results.
PSEG's power-generation business, which sells wholesale
electricity into regional markets, recorded a 29% earnings jump for
the quarter. The increase was driven by lower fuel costs, including
greater use of natural gas-fired power plants due to a sharp drop
in gas prices. At the same time, the company reduced its use of
coal-fired plants. But executives during a conference call with
analysts Monday said they don't expected this dynamic to continue
in the summer months as warmer weather drives stronger demand.
The company's New Jersey-based utility segment reported a 9.6%
drop in profit as poor economic conditions constrain energy demand,
particularly to the commercial and industrial sectorsThe utility
lowered its electricity sales forecast for the year to a decline of
1.5% to 2% from a decline of 0.5% to 1%.
PSEG is relying more on its utility business for growth with
slumping power prices and weaker demand. Last month, it won
approval for an estimated $694 million in new utility projects.
PSEG awaits decisions from regulators on two other proposals for
New Jersey, an estimated $190 million to encourage conservation and
create so-called green jobs and $800 million in solar projects. The
solar proposal would include larger solar "energy farms" and the
installation of panels on up to 200,000 utility poles.
A decision on the efficiency proposal could come next month,
while one on the solar projects is likely this fall, Ralph Izzo,
PSEG's chairman and chief executive, said Monday.
-By Mark Peters and Mike Barris, Dow Jones Newswires;
201-938-4604; mark.peters@dowjones.com