Vectren Corp. reported net income for the year ended December 31, 2013, of $174.1 million, or $2.12 per share, excluding the 2013 results from ProLiance Holdings, compared to net income of $159.0 million, or $1.94 per share in 2012.
In a release on February 19, the Company noted that it exited the gas marketing business in 2013 and, as such, the results generated during 2013, the year of disposition, were excluded. Reported results for 2013 were net income of $136.6 million, or $1.66 per share.
Summary and highlights of results
-Utility Group earnings were $141.8 million, or $1.72 per share, in 2013, compared to $138.0 million, or $1.68 per share, in 2012.
-Nonutility Group earnings were $33.0 million in 2013, excluding the results of ProLiance, compared to earnings of $21.7 million in 2012. ProLiance exited the gas marketing business effective June 18, 2013. The 2013 ProLiance results excluded were a loss of $37.5 million, including the company's share of the loss on disposition.
-Included in the Nonutility Group earnings are the results from Infrastructure Services that were earnings of $49.0 million, compared to $40.5 million in the prior year. The increased earnings in 2013 reflect the continuation of strong demand for infrastructure services by utilities and pipeline operators.
-Fourth quarter 2013 consolidated net income was $49.8 million, or $0.60 per share, compared to net income of $42.8 million, or $0.52 per share, in the fourth quarter of 2012.
"I am pleased with both the improvement and strength of the utility and infrastructure services' earnings for 2013. We also improved ongoing results with the exit of our gas marketing business in 2013 which was consistent with our commitment to further stabilizing our earnings. In addition, while it was a difficult year for our coal mining operations, we did see improvement as the year progressed," said Carl Chapman, Vectren's chairman, president and CEO. "Looking forward to 2014 guidance, we currently expect good growth again on the strength of the utility and infrastructure services' earnings, but also with expectations of improved results for the year for coal mining," said Chapman.
The combined 2014 guidance range is consolidated earnings of $2.15 to $2.35 per share. The company expects 2014 Utility Group earnings to be within a range of $1.70 to $1.80 per share and the Nonutility Group earnings to be in a range of $0.45 to $0.55 per share.
The Utility Group consists of the company's regulated utility operations and other operations that provide information technology and other support services to those regulated operations. The company segregates its regulated utility operations between a Gas Utility Services operating segment and an Electric Utility Services operating segment. The Gas Utility Services segment provides natural gas distribution and transportation services to nearly two-thirds of Indiana and to west-central Ohio. The Electric Utility Services segment provides electric transmission and distribution services to southwestern Indiana and includes its power generating and wholesale power operations. The Utility Group also earns a return on shared assets, such as customer billing systems and the customer contact center, used by the company's utility operations.
For the year ended December 31, 2013, the Utility Group earned $141.8 million, compared to $138.0 million in 2012. In the fourth quarter of 2013, the Utility Group earnings were $37.2 million, compared to $35.5 million in 2012. The improved results in 2013 are primarily related to increased electric utility earnings, driven by higher margin and reduced interest expense associated with recent refinancing activity.
Vectren Corp. is an energy holding company headquartered in Evansville, Ind.
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