Natural gas transport and storage company Spectra Energy Corp. on Thursday said its third-quarter earnings sank 35 percent due in part to lower commodity prices. Quarterly earnings declined to $191 million, or 30 cents per share, compared with $296 million, or 48 cents per share, during the same period last year. Results beat analyst expectations of 26 cents per share, according to a survey by Thomson Reuters. Revenue dropped 16 percent to $933 million, down from $1.08 billion a year ago. Analysts forecast an average revenue of $986.2 million. The company said strong performance at its fee-based business offset "much lower" commodity prices. Additionally, declining profits and a lower effective tax rate pushed down income tax expense from continuing operations by nearly two-thirds to $54 million from $145 million in the prior-year quarter. Looking ahead, Spectra said its on track to meet its earnings-per-share target of $1.15 for 2009. Analysts are predicting a profit of $1.14 per share. Spectra shares fell 2 cents to $19.45 in midday trading. (This version CORRECTS the day of the week in the lead.) |