Dive Brief:
- DTE Energy reported first quarter 2015 earnings of $273 million, or $1.53/diluted share, compared with $326 million in the same period of 2014.
- Company officials described the results as "solid" and said the company is on track to meet its 2015 goals.
- DTE Electric reduced rates by 6% early this year, building on a 6% reduction in early 2014.
Dive Insight:
DTE Energy, which owns an electric utility serving 2.1 million customers in southeast Michigan and a natural gas utility serving 1.2 million customers, said that while this past winter didn't live up to the Polar Vortex of the previous season, the cold weather did give earnings a boost.
"We are starting 2015 with a good first quarter," said Peter Oleksiak, DTE Energy senior vice president and CFO. "Colder than normal weather was a significant driver of our first quarter financial results, even though the winter of 2015 was less extreme than the record-setting cold winter of 2014. We will continue to focus on maintaining our strong earnings as the year progresses."
The Wall Street Journal points out that in the first quarter, the company's energy trading segment posted a $9 million loss compared to profits that exceeded $40 million last year.
The company reduced customer gas prices by 17% in the first quarter, based on savings from a combination of reduced natural gas costs and DTE's purchasing strategy. On the electric side, DTE dropped rates 6% in the first quarter.
The company confirmed its 2015 operating earnings per share guidance of $4.48 to $4.72.
"DTE Energy's solid first quarter performance sets us squarely on the path to achieve our financial and operational goals for 2015," said Gerard Anderson, DTE Energy chairman and CEO.
