NEW ORLEANS — Entergy Corporation expects fourth quarter 2010 as-reported earnings of approximately $1.25 per share and operational earnings of approximately $1.29 per share. As-reported and operational results for fourth quarter 2009 were $1.64 per share and $1.75 per share, respectively.
Beginning this quarter, Entergy has revised its business segment disclosures to reflect the internal reorganization announced in June 2010 combining all non-utility generation into Entergy Wholesale Commodities, or EWC. A portion of EWC was previously reported in Parent & Other. The Utility segment is unchanged.
The quarter-over-quarter decrease in operational earnings at Entergy Wholesale Commodities was driven by lower net revenue due primarily to additional planned and unplanned outage days at EWC’s nuclear plants. Lower nuclear generation reflected planned refueling outages at two plants totaling 43 days, as well as an extended unplanned outage at Indian Point 2 in Nov. 2010. There were no nuclear refueling outages in the fourth quarter of 2009.
Also contributing to the decline in operational earnings in the current period was a higher effective income tax rate and a reduction in other income associated with decommissioning trusts. A gain on the sale of the Harrison County plant and lower non-fuel operation and maintenance expense provided a partial offset to these items.
The decrease in Utility’s earnings in fourth quarter 2010 was due primarily to an increase in non-fuel operation and maintenance expense. In addition, a decline in Utility net revenue was driven by the net effect of the absence of a prior year positive adjustment for changes in the deferred fuel methodology at Entergy Gulf States Louisiana and a regulatory charge also recorded in the prior year period. Favorable weather during the fourth quarter of 2010 and pricing adjustments resulting from previous rate actions had an overall positive effect on net revenue.
Entergy affirmed previously issued as-reported and operational earnings guidance for 2011 to be in the range of $6.35 to $6.85 per share.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info