February 18, 2010 / 2:54 PM / 8 years ago

WRAPUP 1-Atco, Canadian Utilities post Q4 profit above estimates

* Atco Q4 adj EPS C$1.37 vs est. C$1.09

* Canadian Utilities Q4 adj EPS C$1.02 vs est C$0.82

* Atco to redeem certain preferred shares

Feb 18 (Reuters) - Canada’s Atco Ltd (ACOx.TO), and its unit, Canadian Utilities Ltd (CU.TO), posted better-than-expected fourth-quarter profits, helped by better performances in their utilities segments.

Both companies said the utilities segment was helped by higher utility investment in rate base, lower costs, and the Alberta Utilities Commission decision to set generic return on equity (ROE) at 9 percent.

For the quarter, Atco, which operates utilities, power plants and other industrial businesses, earned C$78.2 million, or C$1.35 a share, compared with C$74.8 million, or C$1.29 a share, a year earlier. [ID:nWNAB8892]

Canadian Utilities’ profit for the quarter rose 11 percent to C$127.1 million, or C$1.01 a share, from C$114.5 million, or 91 Canadian cents a share.

Revenue fell 9 percent to C$675.6 million. [ID:nWNAB8900]

Separately, Atco also said it will redeem all of its outstanding 5.75 percent cumulative redeemable preferred shares on March 23, for a total cost of C$153.5 million.

Shares of the Calgary, Alberta-based Atco were trading up at C$45.74, while Canadian Utilities shares were up at C$42.32 in early trade on the Toronto Stock Exchange. (Reporting by Koustav Samanta in Bangalore; Editing by Savio D’Souza)

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