USA: AGL Resources Reports Fourth Quarter and Year-End 2010 Results

 

AGL Resources Inc. reported 2010 net income of $234 million, or a record $3.02 per basic share ($3.00 per diluted share), compared with net income of $222 million, or $2.89 per basic share ($2.88 per diluted share), for the prior year. Excluding the effect of $0.05 per share of merger costs related to the proposed merger with Nicor, Inc. announced on December 7, 2010, the full year non-GAAP EPS was $3.07 per basic share and $3.05 per diluted share in 2010.

Consolidated earnings before interest and taxes (EBIT) were $499 million for 2010, an increase of 3% compared to $485 million in the prior year. EBIT for the fourth quarter of 2010 for AGL Resources were $135 million, compared to $150 million in the fourth quarter of 2009.

AGL Resources’ dividend for 2010 was $1.76 per share, and today the company’s Board of Directors announced a $0.04 per share dividend increase for 2011.

“We are pleased with our record results in 2010 which are a direct reflection of our continued focus on the fundamentals across each of our business segments. We successfully accomplished several meaningful objectives during the year, including the completion of rate cases at both Atlanta Gas Light and Chattanooga Gas, the sale of AGL Networks and the December announcement of our proposed merger with Nicor. In addition, with the first cavern of our Golden Triangle Storage facility coming online in September 2010 we continued to execute on our high deliverability salt dome storage strategy. We also built upon several 2009 initiatives, including revenue recognition from the Hampton Roads Crossing and Magnolia pipeline projects and our increased ownership interest in SouthStar. AGL Resources has demonstrated a strong track record of stability and growth for our shareholders, and today we announced AGL Resources’ ninth dividend increase since 2002,” said John W. Somerhalder II, AGL Resources’ chairman, president and chief executive officer.

“We will be working to secure the necessary approvals for the Nicor transaction in 2011, while remaining dedicated to excellence in operational and financial performance and providing our customers with safe, affordable natural gas service.”

“Throughout 2010 natural gas price volatility remained low, creating challenges for many in our industry. For AGL Resources, however, margin-enhancing infrastructure projects, new cost recovery mechanisms in key service territories, our wholesale and retail market expertise and our cost-conscious corporate culture drove net income growth of 7% during the year, excluding costs related to the Nicor transaction,” said Andrew W. Evans, AGL Resources’ executive vice president and chief financial officer. “We also successfully completed nearly $1.2 billion of non-deal refinancing activity during the year, helping us to maintain a strong balance sheet, ample liquidity and good access to the capital markets.”

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Source: AGL Resources, February 11, 2011;

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