MW: PSEG earnings climb as gas, electric segments grow
Public Service Enterprise Group Inc. said first-quarter earnings increased a better-than-expected 51% because of the economic recovery as well as growth in both the gas and electric segments.
The New Jersey-based power company had been hurt in prior years by higher expenses to repair facilities and restore electricity to customers in the wake of superstorm Sandy and other storm-related expenses. The company has a $12 billion five-year capital spending plan, with most of it targeted for transmission system upgrades at its PSEG utility.
Earnings in the quarter ended March 31 were spurred by the overall strengthening of the economy means higher demand. Gas deliveries grew about 0.4% in the quarter and have benefited from sustained low commodity prices.
Electric sales rose by about 0.2% led by growth in the commercial and industrial sector, offsetting a decline in residential demand. Electric demand is growing, the company said.
Overall, the company reported a profit of $586 million, or $1.15 a share, up from $386 million, or 76 cents a share, a year earlier. Excluding items such as restructuring costs, earnings were $1.04 a share, up from $1.01 a share a year earlier.
Analysts polled by Thomson Reuters expected per-share profit of 95 cents.
The company reaffirmed its full-year guidance.
Shares of Public Service Enterprise have been up about 3% in the past 12 months through Thursday's close.
