TECO Energy has nothing more to say on potential sale

TECO Energy (NYSE:TE) has nothing more to say about the conceivable sale of the company to a larger utility holding company.

That was the official line from the company during a July 30 conference call. On July 16, TECO formally acknowledged that it was “exploring strategic alternatives,” including potential sale of the company. TECO said at the time that it was responding to market rumors.

TECO has retained Morgan Stanley & Co. to advise the company. “TECO Energy has no additional comments at this time,” the company said upon release of its second quarter earnings figures.

Any potential sale apparently wouldn’t come before Aug. 6 when TECO is scheduled to ring the closing bell at the New York Stock Exchange to mark its 50th anniversary as a publicly traded company.

TECO Energy President and CEO John Ramil said TECO acknowledged that it was looking at sale options largely in response to a story that appeared in the press. Companies do this sort of evaluation often and it rarely becomes public, Ramil said.

Ramil was responding to a question from a financial analyst who asked if TECO would eventually disclose if it decides not to sell. Ramil said the company’s actions would become clear over time.

Due to recent developments in negotiations regarding the sale of TECO Coal the company is deferring reporting results from discontinued operations at this time, and expects to report complete second-quarter GAAP results, including unaudited financial statements on or before Aug. 7, the company said in a news release.

Second-quarter non-GAAP results from continuing operations, which exclude $0.4 million of costs associated with the integration of New Mexico Gas Co. (NMGC), were $61.9m, or $0.26 on a per-share basis, compared with $60.3m, or $0.28 on a per share basis in 2014. GAAP results from continuing operations were $61.5m, or $0.26 per share, compared to $57.6m, or $0.27 per share in 2014.

“Our Florida operations delivered strong financial performance this quarter and experienced customer growth of 1.8% and 2.2% at Tampa Electric and Peoples Gas, respectively – well above the national average,” said Ramil.

“New Mexico Gas realized improving customer growth and the positive impact of synergies from the acquisition, and was able to deliver near break-even results in a quarter that typically has produced moderate seasonal losses,” Ramil said.

The conversion project at Polk Units 2-5 is on schedule and on budget, TECO officials said. The units are being upgraded from simple-cycle to combined-cycle natural gas. TECO materials included a slide on installation of a heat recovery steam generator at the site. The project is smaller in scope that the Bayside conversion project less than a decade ago, TECO officials said.

 

 

 

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.