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TECO's earnings increase 22 percent
By LOUIS HAU, Times Staff Writer
TECO Energy Inc., hammered by troubles at its wholesale power business, reported a 22 percent jump in third-quarter net income. TECO reported net income of $118.9-million for the quarter, up from $97.3-million in the same period last year. Earnings per share were 76 cents, up 5.5 percent from 72 cents a year earlier. The sharp difference between the percentage gains in net income and earnings per share stemmed from dilution caused by the company's completion of two stock offerings totaling 19-million shares since the third quarter of 2001. In an effort to pay down more debt, the company launched another offering of 17-million shares last week. The results were in line with the Tampa utility's preliminary earnings announced last week and had little impact on its stock. After closing Wednesday at its lowest finish since August 1988, TECO's shares closed Thursday at $11.27, up 15 cents, or 1.4 percent. Ironically, one of TECO's main earnings drivers in the quarter ended Sept. 30 was its wholesale-power unit, TECO Power Services, which has suffered from much lower-than-projected wholesale electricity prices. The unit reported net income of $25.6-million, up 65.2 percent from $15.5-million in the same period last year. The gain was due in large part to $6-million in after-tax income from a recent settlement with the Electric Reliability Council of Texas for making standby power available for Texas' power grid earlier this year. Another factor: higher capacity payments for its power plants in Guatemala and increased earnings from construction-related and loan agreements with Panda Energy, which is TECO's joint-venture partner in a number of power plant projects. TECO's main business, Tampa Electric Co., reported net income of $63.1-million, up 11 percent from $56.8-million a year earlier. The utility reported that both customer growth and retail energy sales rose by 2 percent. Peoples Gas System posted net income of $3.1-million for the quarter, up 19 percent from $2.6-million in the same period last year, which reflected customer growth of 5 percent, higher residential and commercial sales. Separately, Tampa Electric said Thursday that it will close its North Tampa payment office on North Florida Avenue near Linebaugh Avenue. Effective Monday, the office will be owned and operated by The Payment Center, an independent payment agent. Tampa Electric customers can continue paying their bills at the same office. The closing isn't related to the recent downsizing at the utility, spokesman Ross Bannister said. Tampa Electric once operated as many as a dozen payment centers in the area. But the utility began closing them four years ago because most customers now opt to pay their bills through the mail or online, Bannister said. For customers who prefer to pay their bills in person, a complete list of authorized pay agents is available at www.tampaelectric.com. -- Louis Hau can be reached at hau@sptimes.com or (813) 226-3404.
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From the Times Business report
From the AP
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