Pacific Lighting Profits Fall on Big Writeoffs
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Pacific Lighting, the parent of Southern California Gas, said its earnings were off by 40% in the fourth quarter and 55% for all of 1986 because of heavy writeoffs.
The company showed a profit of $36.1 million on revenue of $1.3 billion for the three months ended Dec. 31, down from a year ago when it earned $60.7 million on revenue of $1.7 billion.
Results from the most recent period were hurt by a $17-million reserve set up to cover anticipated losses by the company’s alternate-energy subsidiary, Pacific Lighting Energy Systems.
For the full year, the company’s earnings declined to $83.6 million on revenue of $5.32 billion. In 1985, it netted $186.6 million on revenue of $6.49 billion.
The full-year results included a $118-million after-tax writeoff the company took in April to reduce the value of oil and gas properties on its books.
The April writeoff was caused by a Securities and Exchange Commission ruling requiring all energy companies to take such action to reflect sharp declines in oil and gas prices.
The 1986 results also included a $10.6-million expense related to the company’s $885-million acquisition of drugstore operator Thrifty Corp.
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