Northwest Natural Gas 4th-qtr profit falls 5 percent as costs rise and revenue declines

Northwest Natural Gas 4Q profit dips 5 percent

PORTLAND, Ore. — Utility company Northwest Natural Gas Co. said Friday its fourth-quarter profit fell 5 percent, as its revenue fell and employee-related expenses rose.

For the final three months of 2009, it earned $31.4 million, or $1.18 per share, compared with $33.2 million, or $1.25 per share, in 2008’s fourth quarter.

Analysts polled by Thomson Financial expected, on average, earnings per share of $1.14.

Revenue fell 11 percent to $309.4 million, from $349.2 million in the prior-year period.

Among the rising expenses that cut into Northwest’s profit were operations and maintenance costs, including pension, health care, bonuses and other employee-related costs like severance pay for workers who accepted buyouts.

Operating expenses for the quarter rose 5 percent to $58.7 million, from $56.1 million in the 2008 period.

For the full year, Northwest’s net income rose 8 percent to $75.1 million, or $2.83 per share, compared with $69.5 million, or $2.61 per share, in 2008. Revenue slipped 2 percent to $1.01 billion, from $1.04 billion a year ago. CEO Gregg Kantor said 2009 produced record-high earnings for Northwest.

For 2010, Northwest Natural expects to earn $2.60 to $2.75 per share. Analysts expect it to earn $2.73 per share.

In midday trading, Northwest Natural shares dipped 17 cents to $43.93. The stock has ranged from $37.71 to $46.47 in the past 52 weeks.