AGL Resources falls short in 3Q

Atlanta-based AGL Resources Inc., parent of Atlanta Gas Light and Georgia Natural Gas, fell short of analysts’ earnings expectations by 5 cents a share despite a five-fold increase in profits.

The numbers: Third-quarter net profit soared to $65 million, or 85 cents a share, from $13 million, or 17 cents a share, a year ago.

Revenue rose 46 percent to $539 million during the first quarter.

The reasons: AGL benefited from hedge gains from natural gas storage. However, rising natural gas prices contributed to a quarterly loss for AGL’s retail energy operations unit, SouthStar Energy Services.

“Our core businesses continue to perform well and consistent with our expectations, despite the difficult economic conditions across the country,” said John Somerhalder II, chairman, president and CEO of AGL Resources.

The future: AGL Resources reiterated that it expects its 2008 earnings to range between $2.75 and $2.85 per share.

—Kristi E. Swartz