DOW JONES NEWSWIRES
CenterPoint Energy Inc. (CNP) posted a 19% decline in
fourth-quarter net income on higher investment losses and income
taxes.
The electricity and natural gas distributor also projected 2009
results below estimates amid increasing pension obligations. It
sees earnings of $1.05 to $1.15, with pension expenses increasing
roughly 16 cents a share. Analysts projected $1.29 a share,
according to Thomson Reuters.
The economic downturn has forced energy providers and pipeline
companies, faced with slumping demand and lower prices, to cut
spending to boost liquidity.
CenterPoint recorded net income of $87 million, or 25 cents a
share, down from $108 million, or 32 cents, a year earlier. Revenue
climbed 6.6% to $2.77 billion.
Analysts were looking for earnings of 27 cents a share on
revenue of $2.71 billion.
Electricity earnings fell 15% on higher transmission costs
billed to the company from power providers while the pipeline
unit's earnings dropped 7% amid higher operating expenses.
Profit at CenterPoint's natural gas distribution unit, which
caters to homes and businesses in the Midwest, rose 7% on continued
customer growth. The natural gas marketing business - which sells
non rate-regulated natural gas to commercial, industrial and
wholesale customers - reported a 37% jump.
CenterPoint is the holding company for all the regulated assets
previously held by Reliant Energy Inc. (REI), from which it split
in 2002.
Shares of CenterPoint closed Tuesday at $11.88 and there was no
premarket trading.
-By Katherine E. Wegert, Dow Jones Newswires; 201-938-5294;
katherine.wegert@dowjones.com