Vectren Corp. (VVC, Financial) filed Quarterly Report for the period ended 2009-06-30.
Vectren Corp. through its regulated subsidiaries Indiana Gas and SIGECO offers gas and/or electricity to customers in adjoining service areas that cover nearly two-thirds of Indiana. Vectren\'s non-regulated subsidiaries currently offer energy-related products and services including energy marketing fiber-optic based communication services and utility related services including materials management debt collections locating meter reading and trenching services to customers throughout the surrounding region. (PRESS RELEASE) Vectren Corp. has a market cap of $2.01 billion; its shares were traded at around $24.85 with a P/E ratio of 13.9 and P/S ratio of 0.8. The dividend yield of Vectren Corp. stocks is 5.4%. Vectren Corp. had an annual average earning growth of 17.5% over the past 10 years.
During the three months ended June 30, 2009, the Company recorded its share of a charge related to ProLiance\'s investment in Liberty Gas Storage, LLC (herein referred to as the Liberty Charge). In the Consolidated Statement of Income, the impact associated with the Liberty Charge is an approximate $19.9 million reduction to Equity in earning of unconsolidated affiliates and an income tax benefit reflected in Income taxes of approximately $8.0 million. The $11.9 million net after tax, or $0.15 per share, charge is generally consistent with previous disclosures about development issues at the Louisiana site. More detailed information about ProLiance s investment in Liberty is included in Note 8 to the consolidated financial statements.
For the three months ended June 30, 2009, net income excluding the Liberty Charge was $5.2 million, or $0.07 per share, compared to earnings of $4.7 million, or $0.06 per share for the three months ended June 30, 2008. For the six months ended June 30, 2009, net income excluding the Liberty Charge was $78.0 million, or $0.97 per share, compared to $68.7 million, or $0.90 per share for the six months ended June 30, 2008. Year to date, earnings per share are approximately $0.04 per share lower than earnings per share in 2008 due to the increased number of common shares outstanding, resulting from the issuance of common shares in June 2008.
In the second quarter of 2009, the Utility Group s earnings were $6.6 million compared to $8.8 million in 2008, a decrease of $2.2 million. Year to date, utility earnings were $62.8 million, or $0.78 per share, compared to $66.8 million, or $0.88 per share, in 2008, a decrease of $4.0 million. The decreases result primarily from lower large customer usage and lower wholesale power sales, both of which have been impacted by the recession, as well as increased deprecation expense. Increased revenues associated with regulatory initiatives and warmer weather in June 2009 partially offset these declines.
The Nonutility Group s 2009 second quarter seasonal loss, excluding the Liberty Charge, was $1.1 million compared to a loss of $4.0 million in 2008. Year to date, nonutility income, excluding the Liberty Charge, was $15.4 million, or $0.19 per share, compared to $2.3 million, or $0.03 per share, in 2008. An improvement of $3.9 million in the quarter as compared to the prior year is attributable to better results from each of the primarily nonutility business groups. Primary nonutility business groups are Energy Marketing and Services companies, Coal Mining, and Energy Infrastructure Services companies.
Dividends declared for the three months ended June 30, 2009, were $0.335 per share compared to $0.325 per share for the same period in 2008. Dividends declared for the six months ended June 30, 2009, were $0.670 per share compared to $0.650 per share for the same period in 2008.
Read the The complete ReportVVC is in the portfolios of John Keeley of Keeley Fund Management, David Dreman of Dreman Value Management.
Vectren Corp. through its regulated subsidiaries Indiana Gas and SIGECO offers gas and/or electricity to customers in adjoining service areas that cover nearly two-thirds of Indiana. Vectren\'s non-regulated subsidiaries currently offer energy-related products and services including energy marketing fiber-optic based communication services and utility related services including materials management debt collections locating meter reading and trenching services to customers throughout the surrounding region. (PRESS RELEASE) Vectren Corp. has a market cap of $2.01 billion; its shares were traded at around $24.85 with a P/E ratio of 13.9 and P/S ratio of 0.8. The dividend yield of Vectren Corp. stocks is 5.4%. Vectren Corp. had an annual average earning growth of 17.5% over the past 10 years.
Highlight of Business Operations:
For the three months ended June 30, 2009, there was a consolidated net loss of $6.7 million, or $0.08 per share, compared to earnings of $4.7 million, or $0.06 per share for the three months ended June 30, 2008. For the six months ended June 30, 2009, consolidated net income was $66.1 million, or $0.82 per share, compared to $68.7 million, or $0.90 per share for the six months ended June 30, 2008. Excluding the impact of the charge discussed below of $11.9 million after tax, or $0.15 per share, related to ProLiance Holdings, LLC\'s (ProLiance) investment in Liberty Gas Storage, for the three and six months ended June 30, 2009, there was consolidated net income of $5.2 million, or $0.07 per share, and $78.0 million, or $0.97 per share, respectively.During the three months ended June 30, 2009, the Company recorded its share of a charge related to ProLiance\'s investment in Liberty Gas Storage, LLC (herein referred to as the Liberty Charge). In the Consolidated Statement of Income, the impact associated with the Liberty Charge is an approximate $19.9 million reduction to Equity in earning of unconsolidated affiliates and an income tax benefit reflected in Income taxes of approximately $8.0 million. The $11.9 million net after tax, or $0.15 per share, charge is generally consistent with previous disclosures about development issues at the Louisiana site. More detailed information about ProLiance s investment in Liberty is included in Note 8 to the consolidated financial statements.
For the three months ended June 30, 2009, net income excluding the Liberty Charge was $5.2 million, or $0.07 per share, compared to earnings of $4.7 million, or $0.06 per share for the three months ended June 30, 2008. For the six months ended June 30, 2009, net income excluding the Liberty Charge was $78.0 million, or $0.97 per share, compared to $68.7 million, or $0.90 per share for the six months ended June 30, 2008. Year to date, earnings per share are approximately $0.04 per share lower than earnings per share in 2008 due to the increased number of common shares outstanding, resulting from the issuance of common shares in June 2008.
In the second quarter of 2009, the Utility Group s earnings were $6.6 million compared to $8.8 million in 2008, a decrease of $2.2 million. Year to date, utility earnings were $62.8 million, or $0.78 per share, compared to $66.8 million, or $0.88 per share, in 2008, a decrease of $4.0 million. The decreases result primarily from lower large customer usage and lower wholesale power sales, both of which have been impacted by the recession, as well as increased deprecation expense. Increased revenues associated with regulatory initiatives and warmer weather in June 2009 partially offset these declines.
The Nonutility Group s 2009 second quarter seasonal loss, excluding the Liberty Charge, was $1.1 million compared to a loss of $4.0 million in 2008. Year to date, nonutility income, excluding the Liberty Charge, was $15.4 million, or $0.19 per share, compared to $2.3 million, or $0.03 per share, in 2008. An improvement of $3.9 million in the quarter as compared to the prior year is attributable to better results from each of the primarily nonutility business groups. Primary nonutility business groups are Energy Marketing and Services companies, Coal Mining, and Energy Infrastructure Services companies.
Dividends declared for the three months ended June 30, 2009, were $0.335 per share compared to $0.325 per share for the same period in 2008. Dividends declared for the six months ended June 30, 2009, were $0.670 per share compared to $0.650 per share for the same period in 2008.
Read the The complete ReportVVC is in the portfolios of John Keeley of Keeley Fund Management, David Dreman of Dreman Value Management.
