, a provider of power and natural gas, said Friday its second-quarter earnings fell 22.9% from the year-ago period, hurt by milder weather, less generation output for Conectiv Energy's units, and higher operating costs.
The Washington, D.C.-based company earned $51.2 million, or 27 cents a share, in the quarter, compared with $66.4 million, or 35 cents a share, a year ago. Analysts polled by Thomson First Call were expecting earnings of $81 million, or 37 cents a share in the most recent quarter.
Second-quarter revenue rose 11.4% from a year ago to $1.9 billion against analysts' estimate of $1.8 billion.
"The second quarter was eventful on several fronts. We finalized a settlement with Mirant, which is subject to court approval, announced a major transmission project, and implemented rate increase phase-in programs that represent a balanced approach to the issue of rising standard offer service costs," the company said. "On the earnings front, we were negatively impacted by mild weather resulting in lower electric sales at power delivery and less generation output for Conectiv Energy's units."
Operating income for the quarter fell 11.5% from a year ago to $163.2 million and operating margin dropped 220 basis points to 8.5%.
Second-quarter revenue from Power Delivery rose 20.2% from a year ago to $1.2 billion and revenue from Pepco Energy Services rose 8.3% to $347.5 million. However, revenue from Conectiv Energy fell 12% to $514.2 million.
Shares fell 31 cents Monday to $24.54.
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