Dive Brief:
- FirstEnergy Corp. third quarter 2014 operating earnings fell to $0.89 per share from 3Q 2013’s operating earnings of $0.94 per share due to milder weather that caused a 1.5% overall decrease in electricity sales from Q3 2013.
- 3Q 2014 profit was $333 million, and $0.79 per share, up from Q3 2013’s profit of $218 million, and $0.52 per share, but Q2 2014 revenue fell to $3.9 billion from Q3 2013’s $4 billion, well below analysts’ prediction for Q3 2014 revenue of $4.12 billion.
- Operating earnings in the company’s transmission business were flat, with increased revenues offset by increased infrastructure investment. Operating earnings in the distribution business fell despite a reduced tax burden because of the reduced electricity sales and increased interest rates.
Dive Insight:
FirstEnergy’s 10 electric distribution companies form one of the biggest investor-owned electric systems in the U.S., with customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland, and New York.
The company affirmed its per share operating earnings forecast for the full year of $2.40 to $2.60.
FirstEnergy worked on “implementing our transmission investment program and working through rate cases," said President/CEO Anthony J. Alexander, and "we are moving forward with our efforts to reduce risk in our competitive business, and our advocacy for a competitive market construct that supports price stability..."
