Dive Brief:
- New Orleans-based Entergy reported fourth quarter earnings of $120.1 million, or 66 cents per share, compared with $146.9 million in fourth quarter 2013, with increased operating costs and taxes to blame for the drop in profit.
- The company reported that billed retail sales increased 2.3% on a weather-adjusted basis, with the increase attributable largely to 5% growth in the industrial customer class.
- Entergy initiated 2015 operational earnings guidance in the range of $5.10 to $5.90 per share.
Dive Insight:
Officials at Entergy are optimistic for the year ahead despite fourth quarter earnings that fell under the pressure of increased operating costs.
“This year, despite some challenges, we can say with confidence that the fundamentals of our business are strong," said Entergy Chairman and CEO Leo Denault. "We have a compelling capital plan to strengthen our operations, and to meet a very real opportunity. We fully expect to continue to deliver on this plan in 2015, and years to come.”
The company began the deployment of capital program via the proposed purchase of the Union Power Station and the start of commercial operations at Ninemile 6, the utility’s first self-build plant in three decades. Denault also noted the company resolved two rate cases, in Mississippi and Texas, "and we did all this while keeping our rates low – about 20% below the national average across all classes."
Retail sales, up more than 2% after accounting for weather, were buoyed by growth in three segments: chemicals, petroleum refining, and pulp and paper. Combined, those industries provided nearly 60% of the year’s total industrial growth, Entergy said. The increases mostly came from existing customers, including expansions and the effects of outages. New customers accounted for approximately 7% of the total industrial increase.