Skip to main content
Publish date:

AGL Resources Profit Jumps

Revenue rises 10%.

Energy services holding company

AGL Resources

(ATG)

said its third-quarter earnings more than doubled from the year-ago period, on the back of strong wholesale business.

The company earned $36 million, or 46 cents a share, in the quarter, compared with $15 million, or 19 cents a share, a year ago. Analysts surveyed by Thomson First Call were expecting earnings of 30 cents a share.

TheStreet Recommends

Third-quarter revenue rose 10.4% from a year ago to $434 million as against analysts' expectation of $397.7 million.

The company expects to earn $2.65 a share to $2.70 a share in the year 2006, compared with $2.55 a share to $2.65 a share forecast earlier. Analysts expect earnings of $2.60 a share for the full year.

"Our wholesale business has created a significant amount of economic value," the company said. "The decline in natural gas prices during the third quarter resulted in the recognition of a substantial portion of that value through gains on our transportation and storage hedges. These price conditions had the opposite effect on our retail operations segment, as the wholesale and retail businesses hedge different exposures.''

Third-quarter operating income rose 66.7% from a year ago to $90 million and operating margin increased 700 basis points to 20.7%.

This story was created through a joint venture between TheStreet.com and IRIS.