By Erin McCarthy
Spectra Energy Corp. said its first-quarter profit jumped 23% as
it benefited from more demand during the winter and higher
commodity prices.
The pipeline and natural-gas storage company unveiled in
February a three-year financial plan, which includes pursuing an
additional $10 billion of natural gas and liquids
opportunities.
Spectra completed the sale of all its remaining U.S.
transmission, storage and liquids assets to Spectra Energy Partners
LP last November for close to $10 billion.
Spectra Energy reported a profit of $419 million, or 62 cents a
share, up from $340 million, or 51 cents a share, a year earlier.
Excluding interest, taxes, depreciation and other items, ongoing
earnings were $1.01 billion, up from $831 million a year
earlier.
Operating revenue rose 16% to $1.84 billion.
Analysts polled by Thomson Reuters recently forecast earnings of
51 cents on revenue of $1.82 billion.
The energy company's distribution revenue rose to $718 million
from $699 million, because of higher customer usage amid
record-cold winter weather, the company said.
"This past winter was a real test for our system, and we
reliably met our customer demands throughout the season," said
Chief Executive Greg Ebel.
Meanwhile, Spectra Energy Partners reported Ebitda of $429
million, up from $347 a year earlier.
Spectra Energy Corp.'s Western Canada Transmission &
Processing business reported Ebitda of $237 million, up from $190
million a year earlier.
Investor Sandell Asset Management has urged the company to
review strategic options for its Canadian operations, including a
possible initial public offering. However, Sandell's latest 13F
filing with the Securities and Exchange Commission shows that the
firm did not hold any Spectra Energy shares.
Write to Erin McCarthy at erin.mccarthy@wsj.com
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