TECO Energy Inc. (TE, Financial) filed Quarterly Report for the period ended 2010-03-31.
Teco Energy Inc. has a market cap of $3.48 billion; its shares were traded at around $16.29 with a P/E ratio of 14.4 and P/S ratio of 1.1. The dividend yield of Teco Energy Inc. stocks is 4.8%.TE is in the portfolios of David Dreman of Dreman Value Management, Brian Rogers of T Rowe Price Equity Income Fund, Stanley Druckenmiller of Duquesne Capital Management, LLC, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors.
Net income for the first quarter was $48.1 million, compared with $18.3 million for the same period in 2009. Results for the quarter reflect significantly higher energy sales as a result of one of the coldest winters in the Tampa area in approximately 40 years. Results for the quarter also reflected higher base rates effective in May 2009 and the 2010 portion of rates approved by the Florida Public Service Commission (FPSC) in December, and lower operations and maintenance expenses discussed below. Net income included $1.0 million of Allowance for Funds Used During Construction (AFUDC) - equity, which represents allowed equity cost capitalized to construction costs, compared with $3.3 million in the 2009 period.
The pretax base revenue benefit from the exceptionally cold weather is estimated to be between $15 and $20 million for the 2010 quarter compared to the same period last year. Pretax base revenues increased between $25 and $30 million in the first quarter of 2010 due to the new base rates approved by the FPSC for Tampa Electric effective in May 2009 and on Jan. 1, 2010.
Peoples Gas reported net income of $17.9 million for the first quarter, compared to $11.2 million in the same period in 2009. Pretax base revenues increased approximately $10 million due to the unusually cold winter weather and approximately $1 million due to the higher permanent base rates which became effective in June 2009. Quarterly results reflect a 0.2% higher average number of customers due to improvements in the Florida housing market, which appear to be driven by the home-buyer tax credit programs. Total therm sales increased 25% driven by 40% and 14% increases in sales to residential and commercial customers, respectively, due to the colder than normal winter weather. Higher therm sales to industrial customers reflect a return to service of a previously idled customer, and higher usage by other industrial customers. Gas transported for power generation customers and off-system sales increased in 2010 compared to the first quarter of 2009 due to high energy demands from the cold weather. Non-fuel operations and maintenance expense was essentially unchanged compared to 2009 levels. Results also reflect slightly higher depreciation and property tax expenses due to routine plant additions.
TECO Guatemala reported first quarter net income of $10.4 million in 2010, compared to $13.2 million in the 2009 period. TECO Guatemalas first quarter 2009 included the $8.7 million gain from the sale of the telecommunications service provider, Navega, which was sold in the first quarter of 2009. The improved 2010 first quarter results reflect a full quarter of normal operations for the San José Power Station, compared to the first quarter of 2009 when the plant experienced unplanned outages for much of the quarter. Improved availability allowed for higher spot energy sales at higher margins driven by the current high cost of residual fuel oil, which sets the market clearing price, and lower than normal power supplies from hydro-electric sources. Higher net income from normal operations and spot energy sales was partially offset by $2.0 million lower capacity payments under the power sales contract. Capacity payments for the San José Power Station are based on a 12-month rolling average availability, and were reduced starting in the second half of 2009 as a result of the unplanned outages in the first six months of 2009. At EEGSA, the distribution utility, 2010 first quarter results reflect the benefit of customer growth, higher energy sales, and cost control measures to offset the impact of the lower distribution tariff implemented in August 2008. Higher earnings at the remaining DECA II unregulated EEGSA-affiliated companies, which provide, among other things, electricity transmission services, wholesale power sales to unregulated electric customers and engineering services, were more than offset by the absence of Navega earnings after its sale.
Parent/other cost in the first quarter was $37.4 million, compared to a cost of $16.0 million for the 2009 period. The cost in 2010 included a $16.2 million charge related to the early debt retirement described below, and a $0.9 million charge related to the 2009 restructuring activities. The cost in 2010 also included a $5.2 million negative valuation adjustment to foreign tax credits based on estimated foreign source income and projected timing of the utilization of the net operating loss (NOL) carry forwards, and a $1.1 million charge to adjust deferred tax balances related to the Medicare Part D subsidies as a result of the recently enacted Patient Protection and Affordability Care Act. The cost in the 2009 period included a $3.6 million valuation adjustment on student loan securities held at TECO Energy parent.
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Teco Energy Inc. has a market cap of $3.48 billion; its shares were traded at around $16.29 with a P/E ratio of 14.4 and P/S ratio of 1.1. The dividend yield of Teco Energy Inc. stocks is 4.8%.TE is in the portfolios of David Dreman of Dreman Value Management, Brian Rogers of T Rowe Price Equity Income Fund, Stanley Druckenmiller of Duquesne Capital Management, LLC, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
TECO Energy, Inc. reported first quarter 2010 net income attributable to TECO Energy of $55.8 million or $0.26 per share, compared to $34.7 million or $0.16 per share in the first quarter of 2009. As discussed in each subsidiary Operating Results section below, first quarter results in 2010 were reduced by charges of $16.2 million for early debt retirement and $0.9 million for restructuring; results in the first quarter of 2009 benefited from $5.1 million of net charges and gains, primarily the gain on the sale of the Guatemalan telecommunications provider, Navega.Net income for the first quarter was $48.1 million, compared with $18.3 million for the same period in 2009. Results for the quarter reflect significantly higher energy sales as a result of one of the coldest winters in the Tampa area in approximately 40 years. Results for the quarter also reflected higher base rates effective in May 2009 and the 2010 portion of rates approved by the Florida Public Service Commission (FPSC) in December, and lower operations and maintenance expenses discussed below. Net income included $1.0 million of Allowance for Funds Used During Construction (AFUDC) - equity, which represents allowed equity cost capitalized to construction costs, compared with $3.3 million in the 2009 period.
The pretax base revenue benefit from the exceptionally cold weather is estimated to be between $15 and $20 million for the 2010 quarter compared to the same period last year. Pretax base revenues increased between $25 and $30 million in the first quarter of 2010 due to the new base rates approved by the FPSC for Tampa Electric effective in May 2009 and on Jan. 1, 2010.
Peoples Gas reported net income of $17.9 million for the first quarter, compared to $11.2 million in the same period in 2009. Pretax base revenues increased approximately $10 million due to the unusually cold winter weather and approximately $1 million due to the higher permanent base rates which became effective in June 2009. Quarterly results reflect a 0.2% higher average number of customers due to improvements in the Florida housing market, which appear to be driven by the home-buyer tax credit programs. Total therm sales increased 25% driven by 40% and 14% increases in sales to residential and commercial customers, respectively, due to the colder than normal winter weather. Higher therm sales to industrial customers reflect a return to service of a previously idled customer, and higher usage by other industrial customers. Gas transported for power generation customers and off-system sales increased in 2010 compared to the first quarter of 2009 due to high energy demands from the cold weather. Non-fuel operations and maintenance expense was essentially unchanged compared to 2009 levels. Results also reflect slightly higher depreciation and property tax expenses due to routine plant additions.
TECO Guatemala reported first quarter net income of $10.4 million in 2010, compared to $13.2 million in the 2009 period. TECO Guatemalas first quarter 2009 included the $8.7 million gain from the sale of the telecommunications service provider, Navega, which was sold in the first quarter of 2009. The improved 2010 first quarter results reflect a full quarter of normal operations for the San José Power Station, compared to the first quarter of 2009 when the plant experienced unplanned outages for much of the quarter. Improved availability allowed for higher spot energy sales at higher margins driven by the current high cost of residual fuel oil, which sets the market clearing price, and lower than normal power supplies from hydro-electric sources. Higher net income from normal operations and spot energy sales was partially offset by $2.0 million lower capacity payments under the power sales contract. Capacity payments for the San José Power Station are based on a 12-month rolling average availability, and were reduced starting in the second half of 2009 as a result of the unplanned outages in the first six months of 2009. At EEGSA, the distribution utility, 2010 first quarter results reflect the benefit of customer growth, higher energy sales, and cost control measures to offset the impact of the lower distribution tariff implemented in August 2008. Higher earnings at the remaining DECA II unregulated EEGSA-affiliated companies, which provide, among other things, electricity transmission services, wholesale power sales to unregulated electric customers and engineering services, were more than offset by the absence of Navega earnings after its sale.
Parent/other cost in the first quarter was $37.4 million, compared to a cost of $16.0 million for the 2009 period. The cost in 2010 included a $16.2 million charge related to the early debt retirement described below, and a $0.9 million charge related to the 2009 restructuring activities. The cost in 2010 also included a $5.2 million negative valuation adjustment to foreign tax credits based on estimated foreign source income and projected timing of the utilization of the net operating loss (NOL) carry forwards, and a $1.1 million charge to adjust deferred tax balances related to the Medicare Part D subsidies as a result of the recently enacted Patient Protection and Affordability Care Act. The cost in the 2009 period included a $3.6 million valuation adjustment on student loan securities held at TECO Energy parent.
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