Empire earnings rise in 4Q, 2006

Annual earnings were $39.3 million, or $1.39 per share, compared to $23.8 million, or 92 cents per share, in 2005. Operating revenues increased 13.6 percent to $413.5 million. Analysts estimated $1.17 in per-share earnings on $348.2 million in operating revenues.

Officials attribute the increase to higher electric rates and customer growth, though that was slightly offset by weather conditions. A June acquisition of Kansas City-based Aquila Inc.’s gas operations contributed $25.1 million to revenues.

Empire’s electric fuel and purchased power costs fell 3.1 percent, partly due to its purchase of wind energy in 2005.

However, earnings were negatively affected by 11 cents per share because of the dilutive effect of an additional 3.8 million shares of common stock sold in a June public offering.

Fourth-quarter operating revenues increased $19.8 million, or 50 cents per share, most of which was due to Empire’s gas segment.

Earnings for the fourth quarter were $8.2 million, or 27 cents per share, exceeding analysts’ estimate of 13 cents. That’s compared to fourth-quarter 2005 when earnings were $1.3 million, or 5 cents per share.

The Joplin utility will hold a conference call at noon today to discuss the earnings report. The presentation can be accessed at Empire’s Web site, www.empiredistrict.com.

Also Thursday, Empire declared a quarterly dividend of 32 cents per share, payable on common stock March 15 to shareholders of record on March 1.

Shares (NYSE: EDE) closed Thursday before the release of the earnings report at $23.72. They were trading up at $24.32 as of 10 a.m., compared to a 52-week range of $20.25 to $25.10.