September 28, 2012 / 1:20 PM / in 5 years

UPDATE 1-Teco Energy to raise $227.5 mln from Guatemala sale

* Cuts full-year earnings forecast

* Proceeds to be used to buy back shares, repay debt

Sept 28 (Reuters) - Teco Energy Inc said it will sell its equity interests in two power stations and related facilities in Guatemala for $227.5 million in cash to focus on its U.S. operations.

The company said its unit, Teco Guatemala, will sell the Alborada and San Jose power stations and the related solid-fuel handling and port facilities to privately held Sur Electrica Holding Ltd.

Teco Energy said it expected the sale to be dilutive to its earnings in 2013 and 2014.

The company cut its full-year earnings forecast from continuing operations to between $1.10 and $1.20 per share from between $1.20 and $1.30 per share to account for the classification of Teco Guatemala as discontinued operations.

Tampa, Florida-based Teco will use the proceeds to buy back shares and to repay San Jose project debt.

The sale of the Alborada Power Station closed on Sept. 27, while that of San Jose could be as late as March 2013, the company said.

Shares of Teco, valued at $3.82 billion, closed at $17.70 on the New York Stock Exchange on Thursday.

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below