Portland General Electric's 1Q profit falls 49 percent

PORTLAND, Ore.—Portland General Electric Co. said Monday costlier natural gas offset higher deliveries to reduce first-quarter profit 49 percent, missing analyst estimates.

For the three months ended March 31, PGE's net income fell to $28 million, 44 cents per share, compared with $55 million, or 88 cents per share, in the year-earlier period.

Analysts polled by Thomson Financial expected, on average, earnings per share of 64 cents.

An increase in the cost of thermal -- primarily natural gas-fired -- electricity generation boosted expenses by $74 million, PGE said. Part of the increased cost of thermal generation stemmed from a 14 percent decrease in hydroelectric production because of colder-than-normal weather that delayed snow melt.

Revenue rose 8 percent to $471 million as the company added 4,000 customers, increasing the amount of electricity delivered by about 1 percent.

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