Aquila Inc. on Thursday said it cut its third-quarter losses, but results fell short of Wall Street expectations as the company reduced debt and continued to close its merchant business.

For the three months ending Sept. 30, the Kansas City, Mo.-based utility reported losing $75.7 million, or 20 cents per share, compared with losses of $116.4 million, or 44 cents per share during the same period a year ago.

Aquila shares gained 11 cents, or 3.3 percent, to close at $3.48 in trading Thursday on the New York Stock Exchange.

The company’s electric and natural gas businesses reported a 19 percent increase in sales.