- Ameren Corp. boosted its adjusted net income to $149 million for Q2 2014, a 57% increase over Q2 2013’s $95 million that met analysts’ forecasts, while revenue was up 1% to $1.42 billion, slightly higher than analysts’ forecast of $1.4 billion.
- The dramatic income increase was due largely to the shift of a Q2 2013 refueling expense at its Callaway Nuclear Energy Center that will occur this year in Q4.
- In addition to not putting the Callaway facility refueling costs on the books until Q4, Ameren’s 57% income boost was attributable to warmer spring weather that drove increased demand for electricity to power customer cooling.
Ameren CEO Warner L. Baxter expressed concern about what he described as EPA’s “unworkable” proposal to cut U.S. greenhouse gas emissions 30% below their 2005 level, especially the interim 2020 target. Baxter called Ameren’s Q2 2014 performance “solid” and said the company will continue to use its power plants "through the end of their useful life," to build “key infrastructure projects,” and to manage costs “in a disciplined fashion.”
Ameren’s expected earnings per share for the year remain in the range of $2.30 to $2.50, and its projected compound annual growth rate through 2018 remains unchanged at 7% to 10%, driven largely by FERC-regulated transmission infrastructure investments and Illinois-regulated natural gas deliveries. The company expects to spend about $1.8 billion on infrastructure in 2014, including $510 million for new and upgraded transmission assets.
Ameren operates generation and distribution facilities in Missouri and provides distribution services in Illinois. The Missouri segment’s Q2 2014 profit was $126 million, up 50% from Q2 2013’s $84 million, but the Illinois segment’s profit dropped to $28 million, 1% below 2Q 2013’s $31 million.