PG&E Corp 3Q Profit Jumps 4.6% On CapEx Investments

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PG&E Corp.'s (PCG) third-quarter profit rose 4.6%, beating analysts' estimates, as the company saw additional revenue because of infrastructure investments.

PG&E said it has spent $3 billion on infrastructure so far this year, increasing its earning potential. The utility's profits are more insulated from slumping power demand because state regulation decouples returns from power sales.

PG&E, which has about 15 million customers in central and northern California, has worked to stem unpaid bills during the economic downturn in the state with home-foreclosure rates among the nation's highest.

PG&E reported profit of $321 million, or 83 cents a share, up from $307 million, or 83 cents, a year earlier. On a non-GAAP basis, the company earned 93 cents a share compared with 83 cents.

Revenue fell 12% to $3.23 billion.

Analysts polled by Thomson Reuters had most recently forecast earnings of 91 cents a share on $3.48 billion in sales.

Operating margin rose to 18.8% from 17.4%.

The utility's electricity sales declined 8.7%, and its natural gas revenue saw a 23.8% drop.

The company said Monday that it agreed to buy solar energy from two California projects as it looks to build its alternative-energy sources as the company looks for ways to boost renewable-energy development to meet government mandates and amid speculation about federal taxes on carbon use and carbon-dioxide emissions.

Shares of PG&E, which reiterated its earnings guidance for 2009, 2010 and 2011, were down eights cents at $41.47 early Thursday.

-By Nathan Becker, Dow Jones Newswires; 212-416-2855; [e-mail];

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