Constellation Energy turns 4Q profit; bolstered by hefty gain on sale of nuclear interest

Constellation Energy turns profit in 4Q

BALTIMORE — Constellation Energy Group Inc. said Monday it turned a profit in the fourth quarter, bolstered by a hefty gain on the sale of a stake in its nuclear generation business.

The Baltimore utility also reaffirmed its guidance for 2010.

For the quarter that ended Dec. 31, the company reported net income of $4.42 billion, or $21.96 a share, compared with a loss of $1.41 billion, or $7.75 a share, in the year-earlier quarter. A series of one-time items included a $4.5 billion gain on the sale of a 49.9 percent stake in its nuclear generation and operation business to France’s EDF Group.

Excluding special items, Constellation said its earnings were 30 cents a share in the latest period.

Revenue fell to $3.4 billion from $4.85 billion in the prior quarter, reflecting sluggish energy demand that began during the recession. Constellation’s expenses also declined, though, falling 45 percent to $3.4 billion as its fuel and purchased energy costs declined.

Analysts surveyed by Thomson Reuters, on average, predicted earnings of 24 cents a share on revenue of $4.35 billion.

For the year, Constellation Energy earned $4.44 billion, or $22.19 a share, compared with a loss of $1.31 billion, or $7.34 a share, in 2008. Revenue fell to $15.6 billion from $19.74 billion a year ago.

The utility reaffirmed its guidance for earnings of $3.05 to $3.45 a share for 2010 and established a 2011 forecast of $3.45 to $3.85 a share. Analysts have forecast earnings per share of $3.36 for 2010 and $3.34 for 2011, on average.

Constellation Energy’s shares fell 54 cents to $34.04 in afternoon trading.