PG&E 2Q net income climbs as charges fall

PG&E 2nd-qtr net income grew 39 pct; co. took $128M in safety and legal charges a year ago

Associated Press

SAN FRANCISCO (AP) -- Utility company PG&E Corp. said Wednesday that its net income jumped 39 percent in the second quarter compared with a year ago, when it took a big charge related to a natural gas pipeline accident.

PG&E has taken a series of charges tied to safety improvements, legal expenses and other costs resulting from a 2010 natural gas pipeline explosion in San Bruno, Calif. The blast killed eight people and destroyed 38 homes.

PG&E said Wednesday that it has spent or committed $2.2 billion from shareholders for safety improvements since the accident. In the second quarter of 2012 those costs totaled $128 million.

The company said its net income rose to $332 million, or 74 cents per share, from $239 million, or 55 cents per share. PG&E said adjusted earnings, which exclude one-time items, were 79 cents per share in the latest quarter, down from 81 cents a year ago.

Revenue increased 5 percent, to $3.78 billion from $3.59 billion. Electricity revenue rose 4 percent to $3.06 billion and natural gas revenue picked up 8 percent to $717 million.

Analysts projected adjusted earnings of 71 cents per share and $3.83 billion in revenue, according to FactSet.

The company maintained its full-year forecast, calling for net income of $2.55 to $2.75 per share excluding one-time items. Analysts expect $2.62 per share on average.

PG&E shares dipped 67 cents to $45.61 in midday trading.

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