Unisource 1Q Profit Climbs As Tucson Costs Fall

TUCSON, Ariz. (AP) — Gas and electricity utility Unisource Energy Corp. said Friday its profit quadrupled in the first quarter because of reduced expenses for its main subsidiary, Tucson Electric Power.

Unisource said its profit rose to $20 million, or 52 cents per share, from $4.9 million, or 14 cents per share, a year earlier. Revenue grew 2 percent to $317.9 million from $311.9 million.

Analysts were forecasting a profit of 22 cents per share, according to Thomson Reuters.

The company said operations and maintenance expenses for Tucson Electric were down $9 million this year. Overall kilowatt-hour sales to retail customers were unchanged, the company said. Residential and mining customers used more power but commercial and industrial customers used less.

Unisource backed its profit forecast of $2.75 to $3 per share in 2010. Analysts are looking for $2.89 per share on average.

In afternoon trading, Unisource stock lost 7 cents to $33.50 as the broader markets fell. Earlier in the day, shares rose 2.6 percent to an annual high of $34.43.

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