Piedmont Energy (PNY), an energy and natural gas utility, reported a 41% rise in first-quarter profits on a one-time divestiture gain and higher natural gas volumes.
Piedmont said it earned $113.7 million, or $1.55 a share, an increase from $80.9 million, or $1.10, in the same period a year ago. The results included a 41-cent gain because Piedmont sold SouthStar Energy last year.
Excluding the gain, Piedmont reported a profit of $1.14 a share, three cents ahead of analysts’ expectations. Revenue fell 14% to $673.7 million.
Despite the revenue decrease, Piedmont said its gross margin rose to 33.1% from 28.3% while natural gas volumes rose because of lower temperatures in the company's service area. The company's cost of gas fell 19% while operating revenues only fell 14%.
Piedmont reaffirmed its fiscal year 2010 earnings guidance of $1.90 to $2.00 per diluted share, which includes the gain from its sale of SouthStar to AGL Resources (AGL).
Shares of Piedmont fell 0.3% to $26.87 a share on Thursday.
