WASHINGTON (dpa-AFX) - Electric utility Pepco Holdings Inc. (POM) on Friday reported a loss for the first quarter on lower revenues and charges. Excluding items, the company reported an adjusted profit, reflecting higher distribution revenue. Looking ahead, the company maintained its earnings outlook for fiscal 2013.
Joseph Rigby, Chairman, President and Chief Executive Officer of Pepco Holdings said, 'Our adjusted earnings from continuing operations reflect our investment in utility infrastructure and the effects of normal weather as compared to the mild winter weather we experienced in 2012.'
Rigby added, 'During the first quarter, progress was made on the liquidation of the cross-border energy lease investments and we continued to focus on the execution of our regulatory strategy with the filing of three additional distribution base rate cases.'
Power Delivery revenues for the quarter rose 7 percent to $1.12 billion, while Pepco Energy Services revenues declined 46 percent to $97 million.
The company's total operating expenses declined 2 percent to $1.09 billion, owing mainly to lower fuel and purchased energy expenses.
Pepco Holdings' first-quarter net loss was $430 million or $1.82 per share, compared to net income of $68 million or $0.30 per share in the previous-year quarter.
Excluding items such as cross-border energy lease charges, adjusted net income from continuing operations were $57 million or $0.24 per share, compared to $50 million or $0.22 per share in the year-ago period. On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.24 per share for the quarter. Analysts' estimates typically exclude special items.
The increase in adjusted net income was driven by higher distribution revenue, partly offset by higher operation and maintenance expense. The 2013 and 2012 periods had favorable income tax adjustments of $11 million and $13 million, respectively.
Operating revenue for the quarter declined 31 percent to $852.0 million from $1.24 billion in the prior-year quarter. Analysts had a consensus revenue estimate of $1.45 billion.
Looking ahead to fiscal 2013, Pepco reaffirmed its earnings outlook in a range of $1.05 to $1.20 per share. Analysts expect the company to earn $1.14 per share for the year.
In Friday's regular session, POM is trading at $22.60, up $0.05 or 0.22 percent on a volume of 421,585 shares.
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