UniSource's 1Q profit down; warm winter cut demand

TUCSON, Ariz. (AP) — UniSource Energy Corp. on Monday said its first quarter profit fell by more than half, as the utility struggled with a rate freeze, lower demand and mild winter weather.

The company, based in Tucson, Ariz., provides service to residential, industrial and commercial customers across the southeastern part of the state.

UniSource reported Monday that it earned $6.5 million, or 17 cents per share, for the quarter ended March 31. That compared with $13.5 million, or 35 cents per share, in the same period last year.

Analysts, on average, anticipated the company would earn 23 cents per share for the period, according to data provider FactSet.

Revenue fell to $318.9 million from $344.8 million.

UniSource coped with weaker performance across its subsidiary companies. UNS Gas's quarterly profit slipped 11 percent to $5.4 million. UNS Electric's net income fell 19 percent to $2.9 million. And its primary subsidiary, Tucson Electric Power, moved to a net loss of $1.5 million this year, from a profit of $4.7 million last year.

Tucson Electric Power has a multi-year rate freeze in place and it struggled with lower demand from industrial customers, as well as mild weather that hurt demand from commercial and residential customers. .

UniSource stood by its full-year earnings guidance of $2.05 to $2.35 per share.

Analysts, on average, expect the company will earn $2.69 per share for the year.

The company's shares fell 16 cents to $36.30 in afternoon trading. The stock has moved between $32.96 and $39.25 in the past 52 weeks.