Vectren Corp.narrowed its annual earnings guidance May 9 after first-quarter 2016 net incomedropped to $48.3 million, or 58 cents per share, from $57.0 million, or 69cents per share, in the first quarter of 2015.
The company's 2016 EPS guidance range now stands at $2.45 to$2.55 as opposed to $2.45 to $2.65 previously. The utility group is expected tocontribute $2.00 to $2.05 towards 2016 EPS while the nonutility group isexpected to contribute 45 cents to 50 cents.
The utility group booked $61.1 million, or 74 cents pershare, in first-quarter 2016 earnings, down slightly from $63.0 million, or 76cents per share, in the opening months of 2015. The earnings were offset by afirst-quarter 2016 loss at the nonutility group that widened to $12.7 million,or 16 cents per share, from $5.9 million, or 7 cents per share, in the samequarter of 2015.
Vectren's 2016 first quarter was marked by a drop inoperating revenues: $584.8 million versus $706.2 million in the opening monthsof 2015.
"As we discussed throughout 2015, InfrastructureServices' transmission operation continues to experience headwinds created bysustained low oil prices, causing increased competition and lower margins fortransmission pipeline maintenance work. As we predicted, the first quarterproved to be a challenge for that part of our business, and we expect thosechallenges to continue through much of 2016," Vectren Chairman, Presidentand CEO Carl Chapman said of the result.
Infrastructure Services is part of the company's nonutilitybusiness group segment.
Vectren has scheduled a call at 2 p.m. ET on May 10 todiscuss its results.