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WGL Loss Narrows

TSC and IRIS Staff

WGL Holdings(WGL), the parent company of Washington Gas Light Company, said Monday that losses narrowed for its third quarter ended June 30, on improved utility operations.

The Washington, D.C.-based company lost $1.8 million, or 4 cents a share, in the quarter, compared with $8.2 million, or 17 cents a share, a year ago. Adjusted for items, loss from normal operations was penny a share in the most recent quarter. Analysts surveyed by Thomson First Call were expecting loss of $4.7 million, or 8 cents a share.

Third-quarter revenue, which includes net revenue from utility operations and non-utility operations, rose 7.1% from a year ago to $250.2 million, as against analysts' estimate of $200.3 million.

From the continuing operations the company expects a loss of 18 cents a share to 26 cents a share in the fourth quarter and a profit of $1.82 a share to $1.90 a share for the full year. Analysts were expecting loss of 22 cents a share in the fourth quarter and earnings of $1.78 a share for the full year.

"We attribute the quarter's sharply improved results to the strength of our utility operations, which continue to experience customer growth, the implementation of innovative regulatory mechanisms, and process improvements," the company said. "Stronger gross margins generated by our retail energy- marketing business are likely to continue to drive end-of-year results, while success in new competitive electric markets is expected to yield growing market share and long-term benefit."

Third-quarter operating profit rose to $10.2 million, compared with $3 million, a year ago. Operating margin for the quarter increased 279 basis points to 4.1%.