AGL's profits rise to $34 million
AGL Resources's second-quarter profits soared 89 percent to $34 million, or 28 cents a share, the company said Wednesday.
Atlanta-based AGL, the nation's largest natural gas-only distribution company, had a net income of $18 million, or 23 cents a share for the same period a year ago.
Earnings for the company's distribution unit, which includes Atlanta Gas Light and other utilities, were $100 million, compared with $74 million during the same time a year ago. AGL's 2011 purchase of Illinois-based Nicor Gas helped contribute to the increase, the company said.
Warmer weather and low natural gas prices affected other parts of AGL's businesses, however.
Low natural gas prices combined with the lack of pipeline capacity to transport the gas contributed to a $9 million quarterly loss for AGL's wholesale unit, Sequent Energy Management.
Also, AGL warned in its news release that its year-end earnings may be lower than the projected $2.80 to $2.95 cents a share. A warm start to 2012 is the main factor, as customers weren't using their heaters as much, the company said.
Executives remained optimistic, telling analysts that the warm weather was unusual.
"We didn't anticipate coming into Illinois with such a warm winter," said Drew Evans, AGL's chief financial officer. "I don't think it will persist for many more seasons."
Evans said the company continues to cut costs after buying Nicor. That may offset any weather-related losses.
"I think at the end of the year we'll be able to tell you we've exceeded our expectations in our abilities to bring the two companies together," he said.
