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PG&E 2nd Quarter Profit Rises

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(AP)

(AP)

SAN FRANCISCO (CBS/AP) — PG&E Corp.’s earnings climbed 9 percent in the second quarter, as a revenue boost from two rate case settlements offset costs related to last year’s San Bruno gas pipeline explosion.

For the quarter that ended June 30, PG&E said Thursday that it earned $362 million, or 91 cents per share. This compares with $333 million, or 86 cents per share, in the same quarter a year earlier.

The company said its results included a boost from the settlement of a general rate case and a gas transmission and storage rate case during the quarter. The results also figure in costs from the San Bruno gas pipeline explosion last year, as well as insurance recoveries and a provision for liability issues related to the explosion.

On Sept. 9, eight people were killed and at least 35 homes destroyed when a PG&E pipeline near San Bruno exploded. San Bruno is about 10 miles south of San Francisco, where the company is based. The company said Thursday that it has set aside $279 million so far to cover third-party liability issues.

>>Photo Gallery: San Bruno Explosion

Excluding one-time items such as the costs related to the San Bruno explosion, PG&E earned $1.02 per share. This is a penny lower than what analysts polled by FactSet expected, on average.

Revenue climbed 14 percent to $3.68 billion, slightly higher than the $3.62 billion analysts were hoping for. Revenue from electric service rose 15 percent to $2.89 billion.

Looking ahead, the company reiterated its outlook for full-year earnings of $2.46 to $3.09 per share, including costs related to the San Bruno explosion, which are expected to total $350 million to $550 million for the year.

Excluding such costs, the company expects earnings of $3.45 to $3.60 per share. Analysts expect $3.51 per share.

PG&E shares rose 24 cents to $40.72 in afternoon trading.

 

(Copyright 2011 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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