Con Edison Reports 2013 Third Quarter Earnings
Consolidated Edison, Inc. (Con Edison) [NYSE: ED] today reported 2013 net income for common stock of $1,062 million or $3.62 a share compared with $1,138 million or $3.88 a share in 2012. Earnings from ongoing operations, which exclude the effects of its lease in/lease out (LILO) transactions and the net mark-to-market effects of the competitive energy businesses (CEBs), were $1,112 million or $3.80 a share in 2013 compared with $1,098 million or $3.75 a share in 2012.
For the fourth quarter of 2013, net income for common stock was $234 million or $0.80 a share compared with $207 million or $0.71 a share in the fourth quarter of 2012. Earnings from ongoing operations for the fourth quarter of 2013, which exclude the net mark-to-market effects of the CEBs, were $202 million or $0.69 a share compared with $203 million or $0.69 a share in the fourth quarter of 2012.
“We are entering 2014 with new rate plans that provide stability for customers, while allowing us to maintain our commitment to system enhancements that will protect New Yorkers from the next major storm,” said John McAvoy, president and CEO of Consolidated Edison, Inc. “We will continue to enhance our communications with customers, including the mobile and electronic platforms that many prefer. We also will maintain our commitment to the environment with our business operations, promoting renewable resources, oil-to-gas conversions, and new energy efficiency solutions for homes and businesses.”
The following table is a reconciliation of Con Edison’s reported earnings per share to earnings per share from ongoing operations and reported net income to earnings from ongoing operations for the three months and year ended December 31, 2013 and 2012.
The company expects its earnings from ongoing operations for the year 2014 to be in the range of $3.65 to $3.85 per share. Earnings per share from ongoing operations exclude the net mark-to-market effects of the CEBs. The forecast reflects capital investments of $2,608 million, substantially all of which will be spent at the company’s regulated utilities. The company expects to meet its 2014 capital requirements, including for maturing securities, through internally-generated funds and the issuance of between $1,500 million and $2,000 million of long-term debt. The company does not expect to need to issue common equity in 2014.
The results of operations for the three months and year ended December 31, 2013, as compared to the 2012 periods, reflect changes in the rate plans and other regulatory matters of Con Edison’s utility subsidiaries, the weather impact on steam revenues, decreases in certain operations and maintenance expenses, increases in depreciation and amortization reflecting the impact of higher utility plant balances, and the net mark-to-market effects of the CEBs.
The following table presents the estimated effect on earnings per share and net income for common stock for the 2013 periods compared to the 2012 periods, resulting from these and other major factors:
Consolidated Edison, Inc. is one of the nation's largest investor-owned energy companies, with approximately $12 billion in annual revenues and $41 billion in assets. The company provides a wide range of energy-related products and services to its customers through the following subsidiaries: Consolidated Edison Company of New York, Inc., a regulated utility providing electric, gas, and steam service in New York City and Westchester County, New York; Orange and Rockland Utilities, Inc., a regulated utility serving customers in a 1,350 square mile area in southeastern New York state and adjacent sections of northern New Jersey and northeastern Pennsylvania; Consolidated Edison Solutions, Inc., a retail energy supply and services company; Consolidated Edison Energy, Inc., a wholesale energy services company; and Consolidated Edison Development, Inc., a company that participates in infrastructure projects.