The Laclede Group Inc. reported operating results for its fiscal 2013 third quarter. Highlights include:
• Net income of $6.6 million, or 25¢ per diluted share, down from 8.4 million for the same period last year;
• Non-GAAP net economic earnings of $8.2 million, or 36¢ per share, down 8%; and
• Gas utility net economic earnings up 45% reflecting more favorable weather.
"Our third-quarter gas utility results were up significantly due to cooler weather and recovery of our ongoing investment in upgrading our distribution pipelines, while gas marketing earnings declined reflecting low price volatility and narrow basis differentials that exist in the natural gas markets today," Suzanne Sitherwood, Laclede president and chief executive, said in a release.
"Meanwhile, we moved closer to finalizing the Missouri Gas Energy (MGE) acquisition. We have obtained Missouri regulatory approval, completed a successful equity offering to finance the acquisition, and remain on track for the integration of MGE," she added.
The gas utility segment, which includes the regulated gas distribution operations of Laclede Gas, reported net income and net economic earnings of $6.8 million for the quarter, up from about $4.6 million for the same period last year.
Laclede Gas filed a general rate case with the Missouri Public Service Commission (MoPSC) in which the company will incorporate into its base rates, effective September 1, the annualized ISRS revenues of $14.8 million it was already collecting in customers' bills. At that time, the ISRS charge will be reset to zero, and Laclede Gas may make future ISRS filings for any qualifying expenditures it incurs after January 31.
The MoPSC approved Laclede Gas' purchase of MGE assets from Southern Union Co. The approval is effective July 31 and permits closing on the $975 million purchase September 1. Laclede Gas was authorized to complete the financing to support the acquisition.
In the third-quarter of 2013, The Laclede Group incurred acquisition-related costs of $2.2 million. For the nine-month period, acquisition-related costs totaled $8.5 million.
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