Duke Energy Trims 2015 Adjusted Profit Forecast
Duke Energy Corp, the largest U.S. power company by generation capacity, cut the top end of its 2015 adjusted earnings forecast, citing a drought and a slowing economy in Brazil and a strong dollar.
The international business, which spans Brazil, Argentina and Chile, had earned only half of what the company had expected through September, Duke said on Thursday.
Adjusted income from international business, which accounts for about 12 percent of revenue, fell nearly 14 percent to $69 million in the quarter ended Sept. 30.
In a bid to cut exposure to unregulated markets at home and overseas, Duke said last month it would buy natural gas distributor Piedmont Natural Gas Co for $4.9 billion.
Gas distribution companies offer higher growth rates than electric utilities and are low-risk because they are immune to commodity prices, Chief Executive Lynn Good told Reuters.
"We constantly are in the market looking at asset availability," Good said.
Duke, which sells power to 7.3 million customers across six U.S. states, has also been retiring several of its coal operations and converting some of them into cheaper and less polluting natural gas-powered plants.
The company cut the top end of its adjusted earnings by 10 cents to $4.65 per share, while leaving the lower end unchanged at $4.55.
On an adjusted basis, Duke earned $1.47 per share in the quarter ended Sept. 30, lagging the average analyst estimate of $1.51, according to Thomson Reuters I/B/E/S.
The company's profit from continuing operations rose 5.5 percent to $940 million, or $1.36 per share, in the third quarter, driven by warmer-than-expected weather and lower fuel costs.
Total operating revenue rose 1.4 percent to $6.48 billion, but missed the average analyst estimate of $6.87 billion.
Duke's shares were down 0.82 percent at $71.34 in early trading.
Up to Wednesday's close, the stock had lost about 13 percent over the past 12 months.
(Reporting by Shubhankar Chakravorty in Bengaluru)
