Duke Energy profit up 30 pct in 1Q
CHARLOTTE, N.C.—Duke Energy Corp., one of the nation's largest electric power companies, said Friday its first-quarter profit rose 30 percent, boosted by the company's three largest business units.
Its shares rose nearly 2 percent.
"We had a great quarter and we see no reason why we won't achieve our strategic and financial objectives," Chairman and Chief Executive James E. Rogers said on a conference call with analysts.
The Charlotte-based utility earned $465 million, or 37 cents per share, in the first three months of 2008, up from $357 million, or 28 cents per share, during the same period in 2007.
Excluding special items and discontinued operations, the company said it earned 35 cents per share in the latest quarter, up from 30 cents a share a year earlier.
Analysts surveyed by Thomson Financial forecast a profit of 30 cents per share. Thomson estimates usually exclude special items.
Revenue rose 10 percent to $3.34 billion from $3.04 billion during the same period a year earlier. Analysts expected revenue of $3.25 billion.
Its shares rose 32 cents, or 1.7 percent, to close at $18.99.
In a note to clients, Banc of America Securities analyst Shelby G. Tucker said Duke mostly benefited from regulatory resolutions during the quarter.
During the period, Duke's U.S. electric and gas unit posted an 11 percent increase to earnings, mainly driven by weather, rate credits and a lack of write-downs.
The company's commercial-power unit saw earnings surge to $146 million from $13 million a year earlier. That gain was helped by an increase in the value of its trading positions, which offset higher expenses from plant maintenance.
Duke's international segment earned $114 million, up 21 percent from the same year ago period, driven by favorable exchange rates.
Rogers said the company is "on track to accomplish our goals," including attaining a 2008 employee incentive target of $1.27 a share on an adjusted diluted basis.
Duke Energy supplies and delivers energy to 4 million customers. It has nearly 35,000 megawatts of electric generating capacity in the Midwest and the Carolinas, and natural gas distribution services in Ohio and Kentucky. In addition, Duke Energy has more than 4,000 megawatts of electric generation in Latin America.
On Thursday, Duke Energy said a coal gasification power plant under construction in southwest Indiana will cost $2.35 billion -- possibly increasing rates for customers by 2 percent.
The company also is building a coal-fired generator in western North Carolina, and has plans to build two natural gas-fired plants in the state. It also has plans to build a nuclear plant in South Carolina.
In an interview with The Associated Press, Rogers said the new power plants will help the company meet growing consumer demand over the next decade.
"At the end of the day, job one for me is to provide affordable, reliable, clean energy," he said.
When asked if Duke has ruled out making any new deals to expand its reach and take advantage of the currently fragmented utility industry, Rogers said he has not.
"My number on focus is to keep everybody focused on the cake, which is our earnings," he said. "If an opportunity presents itself, that would be the icing."
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Duke Energy Corp.: http://www.duke-energy.com
