Entergy expects increase in as-reported, operational earnings
by MBJ Staff
Published: July 17,2014
NEW ORLEANS — Entergy Corporation expects second quarter 2014 as-reported earnings of approximately $1.04 per share and operational earnings of approximately $1.10 per share.
Results for second quarter 2013 were $0.92 per share on an as-reported basis and $1.01 per share on an operational basis. The increase in earnings reflected top line growth, particularly at Entergy Wholesale Commodities, the wholesale generation business, where both higher volume and prices contributed. Entergy also affirmed its 2014 operational earnings guidance range of $5.55 to $6.75 per share.
As-reported results are prepared in accordance with generally accepted accounting principles and comprise operational earnings and special items. Special items in second quarter 2014 were related to the planned closure of the Vermont Yankee Nuclear Power Station later this year and the human capital management strategic imperative. Second quarter 2013 included special items for the proposed transmission spin-merge transaction and for expenses associated with the implementation of the human capital management strategic imperative.
The second quarter 2014 operational earnings improvement was due to higher earnings at Entergy Wholesale Commodities. Operational results for Utility and Parent & Other largely matched the prior period. On a consolidated basis, the preliminary estimate for the effective income tax rate for operational earnings in second quarter 2014 increased to approximately 40 percent.
Entergy Wholesale Commodities
The quarter-over-quarter operational earnings increase for Entergy Wholesale Commodities was attributable to increased net revenue. Nuclear sales volume was higher due to a lack of refueling outages and reductions in unplanned outages compared to second quarter 2013. Higher power prices for the nuclear fleet also contributed. Increased depreciation and income tax expenses partially offset these items.
At Utility, net revenue increased due primarily to price factors related to rate actions. On a volume basis, higher weather-adjusted sales, particularly in sales to industrial customers, was offset by milder weather. Utility results also included lower non-fuel operation and maintenance expense. Offsetting factors included an increase in depreciation expense and a higher effective income tax rate, resulting in operational earnings largely unchanged from second quarter 2013.
Parent & Other
Parent & Other’s operational results were essentially flat versus the second quarter of last year. No individual item was significant.
To sign up for Mississippi Business Daily Updates, click here.
FOLLOW THE MBJ ON TWITTERMy Tweets
Twang & Tourism: The Country Music Trail
Top Posts & Pages
- Officials set hunting dates for birds; expands dove season by 20 days
- FLIPPING OUT — Flipping houses is popular in much of the country, but in Mississippi ...
- Brandon man hauls in record 756-pound alligator
- REVVING UP — Motorcars of Jackson is preparing to open its first-ever showroom on I-55
- Woman found guilty of murder in buttocks injection case
- Is cotton looking too good? Farmers facing weaker prices
- MBJ Special report: MDA numbers help with cities’ retail pitches
- Nehi Bottling Company has been a Cleveland fixture for 85 years
- COO of TL Wallace Construction keeps eye on revenue growth and profits