The company also affirmed its 2012 earnings outlook Thursday, saying it expected adjusted net income toward the high end of analysts' expectations even as it spends hundreds of millions to update its pipeline network.
The company said it expects to spend between $450 million and $550 million this year on a pre-tax basis on pipeline-related work, including major upgrades for pipeline safety. In September 2010, one of PG&E's pipelines exploded in San Bruno, Calif., laying waste to a quiet subdivision overlooking the San Francisco Bay. Eight people were killed, dozens were injured and more than 100 homes were destroyed or damaged in the bedroom community.
PG&E President Chris Johns said that for 2012, the company has taken a charge of $200 million to cover potential fines and penalties related to the San Bruno explosion. He warned that the charge is just an estimate, and could vary depending at the discretion of regulators.
"We believe this represents the low end of the range of expected fines and penalties associated with the various gas matters," Johns told analysts during a conference call Thursday, according to a transcript.
Still, the company affirmed its adjusted 2012 profit forecast, which excludes one-time items. The company said it expects to earn between $3.10 and $3.30 per share. Analysts forecast adjusted income of $3.19 per share, according to FactSet.
PG&E said its net income for the quarter ended Dec. 31 was $83 million, or 20 cents per share, compared to $250 million, or 63 cents per share during the same period a year before. Revenue during the quarter was $3.81 billion, up from $3.62 billion the year before, said spokesman Brian Hertzog.
The company also reported adjusted net income from continuing operations of 89 cents per share, compared to an adjusted 70 cents per share in the same period a year before.
The results beat analyst expectations for adjusted net income of 85 cents per share on revenue of $3.56 billion.
During the fourth quarter, the company paid $339 million for pipeline related costs and penalties, along with other one-time charges like environmental costs and insurance recoveries.
For the full year of 2011, the company reported net income of $844 million, or $2.10 per share, compared to $1.1 billion or $2.82 per share the year before.
Shares rose 93 cents, or 2.2 percent, to $42.38 in afternoon trading.
