Chesterton Tribune



NiSource Inc posts $532M profit in 2013

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NiSource Inc. is reporting a net income in 2013 of $532.1 million or $1.70 earnings per basic share, compared to $416.1 million in 2012.

For the fourth quarter of 2013, NiSource is reporting a net income of $151.8 million or 48 cents earnings per basic share, compared to $134 million or 43 cents in the year-ago period.

“For NiSource, 2013 brought another year of solid execution, notable achievement, and industry-leading growth in shareholder value,” NiSource President and CEO Robert Skaggs Jr. said in a statement released today. “Our team executed on a record $2 billion capital program that included key system modernization, growth, and environmental investments, at the same time delivering on a wide range of customer service, commercial, and regulatory initiatives. These efforts generated results at the upper end of our earnings guidance and produced total shareholder value returns that outperformed utility indices by a wide margin for the fifth consecutive year.”

Shareholders “benefited from a total shareholder return of 36 percent during 2013,” NiSource noted, including a 4.2 percent increase in the company’s common stock dividend, announced on May 14. That increase resulted in an annualized dividend of $1 per share, up from the previous 96 cents per share.

Meanwhile, NiSource said, on Jan. 31 Moody’s Investor Service upgraded the company’s credit rating to Baa2 from Baa3, while late last year Fitch Ratings confirmed its credit rating of BBB. Standard & Poors has also rated NiSource’s credit at BBB.


In addition, NiSource reported on its subsidiary, the Northern Indiana Public Service Company:

* The first of two flue gas desulfurization (FGD) units at the R.M. Schahfer Electric Generating Station in Wheatfield was placed into service in November, “delivered on budget and ahead of schedule.” That project is part of more than $850 million in environmental investments planned at the company’s electric generating facilities. The second FGD unit is expected to be put into service at the end of 2014, while construction on a similar project at the Michigan City Electric Generating Station should be completed by the end of 2015, NiSource said.

* On Monday, the Indiana Utility Regulatory Commission approved NIPSCO’s seven-year, $1.1-billion electric infrastructure upgrade plan, with initial investments to begin by the middle of this year.

* Work also continues on two transmission projects: the Reynolds-Topeka project, a 100-mile, 345-kilovolt line, remains on schedule; while the Greentown-Reynolds project, a 66-mile, 765-kilovolt line--a joint project with Pioneer Transmission--is in the public outreach stage. “The projects, which together involve an investment of approximately $500 million for NIPSCO, are anticipated to be in service by the end of 2018.”

NIPSCO’s total capital investment expenditure in 2014 is projected at $450.

Operating Income: 2013

* Gas distribution: $445.4 million ($391.3 million in 2012).

* Columbia Pipeline Group: $441.4 million ($398.4 million in 2012).

* Electric: $265.5 million ($250.8 million in 2012).

* Corporate and other: an operating loss of $8.9 million (an operating loss of $400,000 in 2012).

* Total operating income: $1.143 billion ($1.04 billion in 2012).

4Q 2013

* Gas distribution: $166.3 million ($127.9 million in the year-ago).

* Columbia Pipeline Group: $120.4 million ($129.5 million in the year-ago).

* Electric: $53.3 million ($50.6 million in the year-ago).

* Corporate and other: $4.1 million (an operating loss of $1.4 million in the year-ago).

* Total operating income: $344.1 million ($306.6 million in the year-ago).




Posted 2/18/2014