NiSource Q4 Adj Profit Tops View, Guides 2014 In Line

(RTTNews) - Energy holding company NiSource, Inc. (NI) reported Tuesday a profit for the fourth quarter that increased from last year, reflecting improved revenues across its operating segments. Operating earnings per share also topped analysts' expectations by a penny. The company also provided earnings forecast for the full-year 2014, in line with Street view.

The Merrillville, Indiana-based Fortune 500 company reported net income of $151.8 million or $0.48 per share for the fourth quarter, higher than $134.0 million or $0.43 per share in the prior-year quarter.

Income from continuing operations for the quarter grew to $153.0 million or $0.49 per share from $132.1 million or $0.42 per share in the year-ago quarter.

Excluding items, operating earnings from continuing operations was $148.7 million or $0.47 per share, compared to $135.7 million or $0.44 per share in the comparable quarter a year ago.

On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.46 per share for the quarter. Analysts' estimates typically exclude special items.

Total consolidated gross revenues for the quarter grew to $1.60 billion from $1.39 billion in the same quarter last year.

Total net revenues, excluding cost of sales, for the quarter increased to $1.05 billion from $967.0 million in the prior-year quarter.

Gas distribution revenues for the quarter increased to $685.7 million from $577.2 million, and gas transportation and storage revenues were $461.3 million, up from $418.7 million in the same quarter last year. Electric revenues increased to $388.2 million from last year's $360.0 million.

Consolidated operating income for the quarter grew to $344.1 million from $306.6 million in the year-ago quarter. Total consolidated operating expenses for NiSource was $715.8 million, up from $668.4 million in the prior-year quarter.

For fiscal 2013, the company posted net income of $532.1 million or $1.70 per share, higher than $416.1 million or $1.39 per share in the prior year. Income from continuing operations for the year increased to $490.9 million or $1.57 per share from $408.8 million or $1.36 per share in the prior year.

Net operating earnings for the year was $493.9 million or $1.58 per share, compared to $425.8 million or $1.46 per share last year. Analysts expected the company to report earnings of $1.56 per share for fiscal 2013.

Total gross net revenues for the full year grew to $5.66 billion from $5.03 billion in the prior year. Street was looking for full-year 2013 revenues of $5.50 billion. Total gross net revenues, excluding cost of sales, totaled $3.84 billion, up from $3.51 billion in the year-ago period.

Looking ahead to fiscal 2014, the company said it expects net operating earnings in a range of $1.61 to $1.71 per share. Analysts expect the company to report earnings of $1.66 per share for fiscal 2014.

Meanwhile, the company also projects earnings to grow by 5 to 7 percent on a long-term basis. Capital expenditure for the year are expected at about $2.0 billion.

The company also noted that on January 31 Moody's Investors Service upgraded NiSource's credit rating to Baa2 from Baa3, and in late 2013 Fitch Ratings confirmed their credit rating of BBB-. NiSource's Standard & Poors credit rating is BBB- as well.

NI closed Friday's regular trading session at $35.17, up $0.43 on a volume of 2.74 million shares.