Teco Energy 3Q Profit Rises 11 Pct

TAMPA, Fla. (AP) — Electric and natural gas utility owner Teco Energy Inc. said Friday its third-quarter profit rose 11 percent, driven by the cheaper cost of natural gas it sold, which more than offset declining sales.

Compared with a year ago, when natural gas prices were trading at record levels close to $14 per 1,000 cubic feet, during the latest quarter natural gas prices ranged between $2.50 and $5 per 1,000 cubic feet.

Earnings for the quarter would have been even higher, were it not $20.8 million in one-time charges related to restructuring, write-offs for project development costs and other special items.

"Our results this quarter reflect the restructuring actions taken to create a leaner, more nimble organization, and to position the utilities to earn their allowed returns despite the weakened Florida economy," said Sherril Hudson, CEO of Teco.

Quarterly earnings climbed to $64.8 million, or 30 cents per share, compared with $58.2 million, or 27 cents per share during the same period last year.

Analysts polled by Thomson Reuters estimated a profit of 36 cents per share, on average. Analysts typically exclude one-time items.

Revenue declined 3.2 percent to $896.3 million, down from $926.1 million in the prior-year period. Analysts forecast an average revenue of $845.7 million.

Teco said it expects its full-year adjusted profit to be in a range of $1 per share to $1.15 per share. Analysts expect earnings of $1.05 per share.

Its shares rose 25 cents, or 1.8 percent, to $14.32 in afternoon trading.