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Thursday, diversified energy firm DTE Energy Co. (DTE) said its second quarter profit increased more than threefold from last year, helped by lower operating expenses, especially the nearly halved fuel, purchased power and gas expenses. Revenues for the quarter declined year over year. Looking further, the company reaffirmed its fiscal 2009 operating earnings outlook.
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| | | {loadposition contentad} | | | | | The Detroit, Michigan-based company reported net income attributable to DTE Energy for the second quarter of $83 million or $0.51 per share, compared to $28 million or $0.17 per share in the year-ago quarter. Excluding non-recurring items, certain timing-related items and discontinued operations, operating earnings for the second quarter 2009 surged to $92 million or $0.56 per share from $26 million or $0.16 per share in the same quarter last year, primarily due to company-wide O&M cost reduction efforts and earnings at Energy Trading. On average, three analysts polled by Thomson Reuters expected the company to earn $0.15 per share for the quarter. Analysts' estimates typically excludes special items. Operating revenues for the quarter declined to $1.69 billion from $2.25 billion in the prior-year quarter. Among the others in the industry, CMS Energy Corp. (CMS) posted second quarter earnings of $74 million or $0.32 per share that rose from a year ago, yet fell short of analysts estimate. Revenues declined to $1.23 billion year-on-year. Another competitor, Wisconsin Energy Corp. (WEC) reported second quarter net income of $63.7 million or $0.54 per share, higher than the previous year. The company's quarterly revenue dipped to $842.5 million from $945.4 million. Operating earnings for Detroit Edison rose to $0.50 per share from $0.31 per share in the second quarter last year, primarily due to continuous improvement initiatives, one-time cost reduction efforts and lower storm restoration expense, drove the increase in earnings. MichCon had a seasonal operating loss of $0.09 per share, compared with an operating loss of $0.07 per share in 2008, driven by customer conservation and higher lost gas, and higher depreciation and interest expenses were partially offset by cost reduction efforts. DTE Energy's operating expenses for the quarter eased to $1.47 billion from $2.09 billion in the second quarter of 2008, mainly due to lower Fuel, purchased power and gas expenses that nearly halved from last year. In May, DTE Energy signed a 20-year agreement with Michigan-based Heritage Sustainable Energy to purchase wind power and renewable energy credits that will be used to help the utility meet the state's renewable portfolio standard. The agreement is the first signed by Detroit Edison following passage last fall of a new state law that requires Michigan's electric utilities to provide 10% of their power from renewable resources by 2015. For the six-month period, net income attributable to the company increased to $261 million or $1.59 per share from $240 million or $1.47 per share in the same period last year. Excluding items, operating income for the period surged to $270 million or $1.65 per share from $153 million or $0.93 per share in the comparable period of the prior year. Revenues for the first half of fiscal 2009 decreased to $3.94 billion from $4.82 billion in the similar period of 2008. Looking forward, DTE Energy continues to expect operating earnings for fiscal 2009 to be in the range of $2.75 to $3.05 per share. Analysts currently expect the company to report earnings of $2.87 per share for fiscal 2009. Commenting on the outlook, DTE Energy's executive vice president and chief financial officer, David Meador said, "While we expect continued pressure from the sharp sales decline in our state, we are confident that our continued focus on cost savings and operational excellence will enable us to meet our goals in 2009, and will position us for long-term growth." DTE Energy closed Wednesday's regular trading session at $35.08, up 76 cents or 2.21%, on a volume of 0.77 million shares. Further, in after-hours, the company's shares gained 16 cents. {loadposition link_nowtime}
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