Vectren Corp. on Feb. 20 reported fourth-quarter 2017 net income of $61.2 million, or 74 cents per share, compared to net income of $69.6 million, or 84 cents per share, in the same quarter of 2016. The result missed the S&P Capital IQ normalized consensus EPS estimate of 76 cents.
Fourth-quarter 2017 operating revenues for Vectren were $711 million, up from $699 million reported in the prior-year period. Operating income was $36.8 million, down from $120.7 million recorded in the last three months of 2016.
Vectren's electric utility services segment contributed $18.4 million toward fourth-quarter earnings, an increase from $17.7 million in the 2016 fourth quarter. The company said the electric utility services segment's results reflect the expected decrease in large customer margin as a customer completed its transition to a co-generation facility.
The gas utility services segment contributed $59.7 million toward earnings in the fourth quarter of 2017, compared to $30.1 million in the same quarter of 2016. The utility group's total contribution was $53.6 million, compared with $51.3 million in fourth-quarter 2016.
Vectren's nonutility group's fourth-quarter earnings slid to $8.1 million from $18.7 million in the corresponding period of 2016. The infrastructure services segment's earnings were $3.7 million, down from $15.1 million in the same quarter of 2016.
Vectren said nonutility results in 2017 reflect a tax benefit of $22.3 million from the revaluation of deferred income taxes on the segment.
For full-year 2017, Vectren reported net income of $216.0 million, or $2.60 per share, up from $211.6 million, or $2.55 per share, in 2016.
Vectren expects earnings for 2018 to be in the range of $2.80 per share to $2.90 per share. That includes expected earnings by the utility group of $2.20 per share to $2.25 per share and the nonutility group's earnings of 60 cents per share to 65 cents per share.