Spectra 4Q profit climbs on higher gas prices

posted: 5 DAYS 22 HOURS AGO

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HOUSTON -Spectra Energy released a cautious outlook for 2010 Thursday as it reported that fourth-quarter profits rose 28 percent on rising natural gas prices.

The fourth quarter also got a boost from a stronger Canadian dollar and revenues from its Western Canada Transmission & Processing segment.

Quarterly earnings for the natural gas transport and storage company rose to $219 million, or 34 cents per share, compared with $171 million, or 28 cents per share, during the same period last year.

Analysts polled by Thomson Reuters expected a profit of 33 cents per share.

Revenue climbed 3 percent to $1.29 billion from $1.26 billion in the prior-year period. Analysts forecast revenue of $1.22 billion.

Conditions improved throughout the year for energy companies, but prices were volatile and for the full year, Spectra said earnings tumbled 25 percent.

Growth from new projects were more than offset by lower commodity prices early in the year.

Profits in 2009 fell to $848 million, or $1.32 per share, compared with $1.13 billion, or $1.81 per share in 2008. Revenue fell to $4.55 billion from $5.07 billion.

The company expects to earn $1.42 earnings per share in 2010, which is below Wall Street expectations of $1.48.

Shares of Spectra Energy Corp. fell 49 cents, or 2 percent, to $21.21.

2010-02-04 10:40:23