PG&E; Profit Drops 79%; 2006 Forecast Is Raised
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PG&E; Corp., owner of California’s largest utility, said Friday that its fourth-quarter profit fell 79% from a year earlier, when the company had a gain related to a bankrupt unit.
Net income fell to $180 million, or 49 cents a share, from $871 million, or $2.04, a year earlier, said the San Francisco-based company, which owns Pacific Gas & Electric. Revenue climbed 25% to $3.73 billion from $2.99 billion.
Profit fell after earnings in the previous period were swelled by a gain from PG&E;’s elimination of negative equity in a unit that went bankrupt in 2003.
PG&E; raised its forecast for 2006 earnings excluding certain items by 5 cents a share, citing the benefits of share buybacks and potential returns from increased investments in its power system. It now expects annual earnings of $2.40 to $2.50 a share.
The company’s utility serves cities such as Fresno and San Francisco. It plans to replace equipment at its nuclear power plant and upgrade meters with more advanced devices.
Shares of PG&E; rose 49 cents to $37.65.
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