Evansville-based Vectren Corp. (NYSE: VVC) says charges related to its pending $6 billion merger with Texas-based CenterPoint Energy Inc. (NYSE: CNP) drove down profits in the third quarter. The utility is reporting net income of $50.4 million, compared to $61.9 million during the same quarter last year. Vectren says merger-related expenses totaled $11.1 million in the third quarter and the transaction is still targeted to close no later than the first quarter of next year.
Chief Executive Officer Carl Chapman says "We continue to be confident in our consolidated earnings expectation for the year. Our Utility Group results reflect the ongoing investment in our gas infrastructure programs in both Indiana and Ohio that continue to drive growth for the business. Despite some declines in the period associated with our Infrastructure Services business, overall, our Nonutility Group expects strong demand to continue for both the Infrastructure Services and Energy Services businesses. Also, last week we reported that our Board of Directors approved a quarterly dividend of $0.48 per share, a 6.7 percent increase. This action continues our stretch of increases to an enviable 59 consecutive years. This announcement is certainly a reflection of our confidence in the long-term growth plan."
Vectren affirmed its 2018 consolidated earnings guidance in the range of $2.80 to $2.90 per share. Last month, the Federal Energy Regulatory Commission approved the merger with CenterPoint.