Empire reports 2007 loss due to ice storms

The year’s net income from continuing operations was a loss of $33,000. Empire’s earnings were $33.2 million, or $1.09 per share, down from $39.3 million, or $1.39 per share, in 2006.

The fourth quarter, which ended Dec. 31, showed an earnings loss of $400,000, or a loss of 1 cent per share, compared to $8.2 million in earnings, or 27 cents per share, in fourth-quarter 2006.

A major portion of Empire’s service area was hit by a severe ice storm in December. Empire incurred about $18.6 million in repair costs, of which $9.2 million was capitalized, $7.9 million was deferred for regulatory treatment and $1.5 million was expensed in December. Effects of the storm, when combined with effects of the January 2007 ice storm that also hit Empire’s service area, resulted in a $5.4 million increase in maintenance costs in 2007.

Also during the fourth quarter, Empire’s Asbury plant was taken offline for regularly scheduled maintenance. That outage is estimated to have added $8.7 million in incremental expenses. The outage was extended when the generator failed inspection in December, increasing expenses by $3.5 million.

In December, Empire completed an equity offering of 3 million shares of common stock, each sold at $23. The offering raked in about $65.8 million in net proceeds.

Shares (NYSE: EDE) closed at $22.09 Thursday and were trading up at $22.47 as of 10:45 this morning. The 52-week range is $21.09 to $26.13.