Dive Brief:
- Duke Energy reported first quarter earnings of $1.24/share, compared with $1.17 in the same period last year, helped by colder weather and strong operating performance.
- Duke's regulated utility segment saw adjusted segment income of $774 million, compared to $737 million in the first quarter last year, an increase of about 5 cents/share.
- The Charlotte Observer points out that Duke's results topped analyst expectations by about 10 cents/share, after missing expectations the two previous quarters.
Dive Insight:
Higher results at Duke's regulated utility were driven by increased wholesale net margins, the company said, adding about 4 cents/share to income, and by rider adjustments, including an increase in energy efficiency programs, which added 3 cents/share
“I am pleased with our operational and financial performance in the first quarter,” President and CEO Lynn Good said in an earnings statement. “Our customers needed a record amount of electricity during the exceptionally cold weather in February, and we were there. We were also quick to respond during numerous winter storms that caused significant outages."
Higher operating and maintenance costs and higher nuclear costs brought earnings down slightly. Duke also reported lower weather-normal retail customer volumes which dropped earnings 2 cents/share. The company saw total electric sales decline 1.4%.
The Charlotte Observer spoke with Duke CFO Steve Young, who said the decline in power sales reflected extremely high usage last winter as well as higher efficiency and a trend towards smaller residences. The company expects sales growth up to 1% this year, however.
Duke's commercial power segment saw first quarter adjusted segment income of $95 million, compared to $10 million in the first quarter 2014, which includes the impact of the Midwest Generation business, which was sold to Dynegy last month.
The company said that based on its first quarter returns the company remains on track to achieve adjusted diluted earnings in a range of $4.55 to $4.75/share this year.