Thursday proved to be a mixed day of earnings results for companies in the energy sector.
Consol Energy (CNX)
A surge in coal prices helped Consol Energy’s net to surge in the fourth quarter.
The Canonsburg, Pa.-based coal producer reported a profit of $176.3 million, or 97 cents a share, compared with $1.2 billion, or 4 cents a share, in the same period a year ago.
Revenue came in at $1.2 billion for the quarter -- up 30% from $918.6 million a year earlier.
Analysts surveyed by Thomson Reuters expected a profit of 63 cents a share on $1.2 billion in revenue.
"This was a very strong quarter for us financially and operationally," said J. Brett Harvey, Consol’s president and CEO, in a release. For the full year ended Dec. 31, the company achieved its highest-ever amount of sales revenue and cash from operations, Harvey said.
“Both our coal and gas segments reported improved pricing and production, and they did an excellent job managing costs,” he added. The company managed to increase operating and financial margins in its coal unit during the quarter as a result of higher realized prices per ton. For 2009, the company has more than 95% of its planned coal production priced at an average realized price of $61.56 per ton -- a 26% increase from 2008 realized pricing.
Consol’s full-year earnings came in at $442.5 million, or $2.40 a share, compared with $267.8 million, or $1.45 a share, in 2007. Analysts polled by Thomson Reuters were expecting earnings of $2.11 for the year.
Consol's CNX Gas subsidiary earned $57.5 million, or 38 cents per share, compared with $29.9 million, or 20 cents per share, in 2007. For the full year, CNX Gas earned $239.1 million, or $1.58 per share, compared with $135.7 million, or 90 cents per share in 2007.
Dominion Resources (D)
Richmond, Va.-based Dominion Resources posted a 16% jump in profit in the fourth quarter, but its profit fell more than 30% for the full year.
The company reported a quarterly net income of $348 million, or 60 cents a share, from $299 million, or 52 cents a share, from the same period a year ago.
Revenue for the period jumped to $4.17 billion, a 14% increase from $3.65 billion a year ago. Analysts surveyed by Thomson Reuters were expecting results of 68 cents per share on revenue of $3.51 billion.
The company attributed its quarterly gains to reduced outage costs at its generating units, a lower tax rate, reduced maintenance expenses and higher contributions from its merchant generation business.
Dominion’s full-year net income fell to $1.83 billion, or $3.16 per share, from$2.54 billion, or $3.88 a share, in 2007 on shaky market and weather conditions.
“2008’s operating results reflect the strength of the business model we implemented in 2007 as well as the diligent efforts of our business units to operate efficiently in challenging markets and milder-than-normal electric utility weather,” said Thomas F. Farrell II, the company’s chairman, president and CEO.
The company expects its 2009 operating earnings to fall between $3.20 and $3.30 a share, and 2010 operating earnings to fall between $3.33 and $3.50 a share.
“Assuming a return to normal economic conditions, we expect to again grow operating earnings per share 6% or more annually beginning in 2011,” Farrell said.
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