While completing its calculations for fiscal 2002, which ended for Piedmont Natural Gas on Oct. 31, the Charlotte, NC distributor Tuesday said its earnings for fiscal year 2003, which ends Oct. 31, 2003, are expected to be between $2.05 and $2.15 per diluted share.

Piedmont also reaffirmed its previous earnings guidance for this year of $1.90 to $2.00 per share, with emphasis toward the lower end of the range. Actual results are expected to be released on Dec.13.

Earnings for FY 2003 are expected to be positively impacted by new customer billing rates that were recently approved by the North Carolina Utilities Commission and the Public Service Commission of South Carolina, Piedmont said. Overall rate increases of $22.2 million became effective Nov.1.

While the recently announced agreement to purchase the stock of North Carolina Natural Gas (NCNG) is expected to be accretive to earnings during FY 2004, the first full year following closing, the transaction is expected to be dilutive by $0.05 to $0.07 per share during FY 2003. As previously announced, the transaction, if approved, is expected to close in mid-2003.

Excluding the proposed NCNG acquisition, Piedmont anticipates a customer growth rate of about 3.5% during FY 2003 and utility capital expenditures totaling around $85 million to fund this growth. The customer growth rate exceeds the industry national average, but is below historic growth rates as a result of continued weakness in the economy.

Senior management has scheduled a conference call to discuss earnings guidance and other recent announcements on Wednesday, Nov. 6 at 2:30 p.m. (Eastern). The conference call will be broadcast live over the Internet and will be accessible at www.piedmontng.com.

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