TULSA (dpa-AFX) - Williams Companies Inc. (WMB) Wednesday reported an increase in profit for the first quarter, helped mainly by gains from the sale of assets in Venezuela.
Meanwhile, Williams Partners L.P. (WPZ), the U.S. pipeline partnership in which Williams Cos. owns about 69 percent, reported a first-quarter profit that improved 13 percent on higher revenues in both the midstream and gas pipeline businesses, as well as increased natural gas liquid margins.
Williams Cos. business segments include Williams Partners, Midstream Canada & Olefins, and others.
Chief Executive Alan Armstrong said, 'We've made a strong start to 2012, with our businesses performing well and driving a 39 percent increase in our adjusted earnings per share. Expansion projects at Williams Partners drove strong increases in fee-based revenues, while Midstream Canada & Olefins continues to perform well.'
Williams Cos.' attributable net income for the first-quarter improved to $423 million or $0.70 per share from $321 million or $0.54 per share last year. The increase was driven primarily by gains in discontinued operations associated with the sale of Williams' former assets in Venezuela.
Income from continuing operations dropped to $0.47 per share from $0.50 per share, due mainly to the absence of a $124 million income tax benefit recorded in first-quarter last year. Adjusted income from continuing operations improved to $0.39 per share from $0.28 per share last year, driven mainly by the improved results at Williams Partners and Midstream Canada & Olefins segments.
On average, 13 analysts polled by Thomson Reuters expected earnings of $0.36 per share for the quarter. Analysts' estimates typically exclude special items.
Williams Partners first-quarter profit rose to $348 million or $0.85 per share from $307 million or $0.81 per share last year. The bottom line was boosted by increases in fee-based revenues at both midstream and gas pipeline as well as higher natural gas liquid margins in the midstream business.
Williams Partners fee-based revenues, total of both gas pipeline and midstream business, increased to $642 million from $578 million last year. Per-unit NGL margins improved to $0.79 per gallon from $0.70 per gallon last year.
Midstream Canada & Olefins segment contributed segmental profit of $103 million compared to $74 million last year, helped mainly by higher per-unit Geismar ethylene production margins, as well as higher volumes.
Looking forward, Williams Cos. lifted its full-year 2012 adjusted earnings guidance midpoint to $1.40 per share from its prior estimate of $1.35 per share.
Williams Cos. backed its earnings guidance of $1.55 per share for 2013.
Analysts currently expect earnings of $1.43 per share for 2012, and $1.64 per share for 2013.
The company also lifted its full-year 2014 adjusted earnings guidance midpoint to $1.83 per share from prior estimate of $1.80 per share.
The company also continues to expect a full-year 2012 dividend of $1.20 per share, and anticipates to increase it by 20 percent in both 2013 and 2014.
WMB closed Wednesday's trading at $32.96, up $0.65 or 2.01%, on a volume of 5 million shares on the NYSE. In after hours, the stock lost $0.22 or 0.68%.
WPZ closed at $56.40, up $1.82 or 3.33% on a volume of 1.4 million shares on the NYSE.
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© 2012 AFX News
