Con Edison Reports 2014 Second Quarter Earnings
Consolidated Edison, Inc. (Con Edison) [NYSE: ED] today reported 2014 second quarter net income for common stock of $212 million or $0.73 a share compared with $172 million or $0.59 a share in 2013. Earnings from ongoing operations, which exclude the effects of the gain on sale of solar energy projects, the lease in/lease out (LILO) transactions and the net mark-to-market effects of the competitive energy businesses (CEBs), were $189 million or $0.65 a share in 2014 compared with $160 million or $0.55 a share in 2013.
For the first six months of 2014, net income for common stock was $574 million or $1.96 a share compared with $364 million or $1.24 a share in the first six months of 2013. Earnings from ongoing operations, which exclude the effects of the gain on sale of solar energy projects, the LILO transactions and the net mark-to-market effects of the CEBs, were $532 million or $1.82 a share in 2014 compared with $476 million or $1.62 a share in 2013.
"We continued to meet financial expectations in the second quarter, while our field operations benefited from a mild spring as we prepared our delivery systems for summer," said John McAvoy, Con Edison's chairman, president and CEO. "Our cost management strategies are helping to maximize productivity and efficiency. We're also proud of the success of our sustainability strategy, which has yielded environmental dividends and national recognition, including a 43 percent reduction in greenhouse gas emissions since 2005 and Newsweek naming us the top U.S. utility in their 2014 Green Rankings."
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 and six months ended June 30, 2014 and 2013.
The company expects its earnings from ongoing operations for the year 2014 to be in the range of $3.70 to $3.85 a share. The company's previous forecast of 2014 earnings was in the range of $3.65 to $3.85 a share. Earnings per share from ongoing operations exclude a $0.09 a share gain on sale of solar energy projects, a $0.02 a share benefit relating to the LILO transactions and the net mark-to-market effects of the CEBs.
The results of operations for the three and six months ended June 30, 2014, as compared to the 2013 periods, reflect primarily changes in rate plans of Con Edison's utility subsidiaries and the weather impact on its steam delivery service. The rate plans provide for revenues to cover expected increases in certain operations and maintenance expenses, and depreciation and property taxes, reflecting primarily the impact of higher utility plant balances. The results of operations also include the gain on sale of solar energy projects, the impact of the LILO transactions and the net mark-to-market effects of the CEBs.
Operations and maintenance expenses for CECONY were higher in the 2014 periods primarily due to operating costs attributable to emergency response and the support and protection of company underground facilities to accommodate municipal projects and, in the six month period were offset in part by lower pension costs.
The following table presents the estimated effect on earnings per share and net income for common stock for the three and six months ended June 30, 2014, as compared with the 2013 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 $40 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 energy infrastructure projects.