Pacific gas and electric has declared its quarterly results for the quarter ended December 2011. The company has reported weak set of numbers amid expenses related to pipeline related costs. This reduced all the gains made by the company. However the company was able to beat analyst expectations. PG&E said its net income for the quarter ended Dec. 31 was $83 million, or 20 cents per share, compared to $250 million, or 63 cents per share during the same period a year before. Revenue during the quarter was $3.81 billion, up from $3.62 billion the year before. The company also reported adjusted net income from continuing operations of 89 cents per share, compared to an adjusted 70 cents per share in the same period a year before.
The company has also provided a positive outlook for the future. The company hopes to improve on its current sales by another 15 percent. The company also has a capital expenditure plan in place. With an investment pipeline of around $450 million and $550 million on upgrades the company has made big plans for the year. The company has also had to face fines of over $200 million due to the San Bruno pipe disaster.
Commenting on the results and the incident CEO Chris John has stated “We believe this represents the low end of the range of expected fines and penalties associated with the various gas matters,” He warned that the charge is just an estimate, and could vary depending at the discretion of regulators.
We maintain a buy on the stock to its robust earnings potential over the future. Investors can also look at adding weight into the stock incase the stock goes down amid the court cases. For the full year of 2011, the company reported net income of $844 million, or $2.10 per share, compared to $1.1 billion or $2.82 per share the year before. Shares rose 93 cents, or 2.2 percent