Loews Corp. (L) reported Monday a profit in its second quarter, compared to last year’s loss, mainly reflecting lower asset impairment charges at its unit Diamond Offshore Drilling, Inc. (DO). Revenues increased slightly from last year.
Among Loews’ units, CNA Financial Corp. (CNA) posted higher earnings and Diamond Offshore posted a profit, compared to last year’s loss. Boardwalk Pipeline Partners, LP (BWP) recorded weak earnings, while Loews Hotels & Co. posted higher profit.
For the second quarter, net income attributable to Loews was $231 million or $0.69 per share, compared to a net loss of $65 million or $0.19 per share in the prior year period.
The latest results included asset impairment charges at Diamond Offshore Drilling, Inc. of $23 million, compared to $267 million last year.
Excluding the asset impairment charges, net income increased $52 million from the prior year, due to higher earnings at CNA, Diamond Offshore and Loews Hotels.
CNA’s earnings increased to $244 million from last year’s $189 million, due to improved underwriting results from its core P&C business and higher realized investment gains in 2017.
Diamond Offshore’s earnings were $7 million, compared to last year’s loss of $294 million due to charges. Excluding charges, Diamond Offshore’s earnings increased mainly due to higher fleet utilization.
Boardwalk Pipeline’s earnings were lower due to a $15 million loss on the sale of a processing facility. Loews Hotels’ earnings increased primarily on the absence of prior year charge.
Loews’ total revenues in the quarter increased to $3.36 billion from last year’s $3.31 billion. CNA Financial’s revenues edged up to $2.37 billion from $2.35 billion a year ago.
Diamond Offshore revenues grew to $399 million from prior year’s $378 million. Boardwalk Pipeline revenues went up to $318 million from $308 million a year ago. Loews Hotels’ revenues, meanwhile, dropped to $181 million from $189 million in the prior year.
In the quarter, Loews’ insurance premiums increased slightly to $1.734 billion from $1.730 billion a year ago. Net investment income fell to $478 million from $587 million last year. The company’s contract drilling revenues increased from last year.
Other revenues, including results from Consolidated Container Company since its acquisition on May 22, grew to $712 million from prior year’s $632 million.
Loews shares closed Friday’s trading at $48.26, up 0.29%.
by RTT Staff Writer
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