Xcel Energy Inc., which owns utilities in Denver and Minneapolis, said Wednesday its fourth- quarter profit rose 53 percent from a year earlier, when the company had costs for writing down the value of the Seren telecommunications unit that it sold.
Net income rose to $112.1 million, or 27 cents a share, from $73 million, or 18 cents, a year earlier, the Minneapolis-based company said in a statement. Excluding one-time items, profit from continuing operations fell to 24 cents a share from 30 cents.
Xcel is focusing on winning regulatory approval for higher electricity and gas rates to increase earnings amid higher costs.
Fourth-quarter profit was reduced by 10 cents a share by higher costs and tax adjustments, the company said.
“They’re depending on a cycle of rate cases to raise earnings,” said Mark Sadeghian, an analyst at Morningstar Investment Service in Chicago who rates Xcel three stars out of five.
Expenses “were up a bit” in the fourth quarter, he said.
Operating expenses rose 5.5 percent in 2005 and will grow more slowly, at 2 percent to 3 percent, this year, chief financial officer Ben Fowke said Wednesday on a conference call with analysts. Xcel shares rose 2 cents to $19.44 in New York Stock Exchange composite trading.
Mild weather in January curbed demand for electricity and gas and may reduce first- quarter profit by 3 cents a share, Fowke said.
