Dive Brief:

• Duke Energy posted adjusted second quarter earnings of 95 cents per diluted share, compared with $1.11/share last year, with the decline largely due to a one-time tax break in 2014.
• The company said it remains on track for full-year diluted earnings in the range of $4.55 to $4.75/share.
• Duke is continuing to develop the delayed Lee nuclear facility, planned for South Carolina, but spending remains low and totaled just $22 million in the first half of this year, reported Charlotte Business Journal.

Dive Insight:

Duke Energy posted lower second quarter earnings, but said things could have been worse. The company reported second quarter diluted earnings per share of 78 cents, compared with 86 cents a year ago. Earnings were lower because a one-time tax break last year did not repeat, there was weakness in Duke's international business, lower demand in Brazil, and the timing of operating and maintenance costs at its regulated utilities.

“Operationally, we met our customers’ energy needs in the second quarter during extended periods of warmer than normal temperatures particularly in the Southeast,” Lynn Good, president and CEO of Duke, said in a statement.

Good also said the company continues to execute its growth strategy and is focsed on providing long-term customer benefit.

Duke's regulated utilities reported second quarter adjusted segment income of $632 million, compared to $689 million in the second quarter 2014, a decrease of 9 cents/share (excluding the benefit of the accelerated stock repurchase program).

Operating and maintenance costs negatively impacted utility returns by 11 cents/share, due to the timing of planned outages in Duke's generation fleet. Higher depreciation expenses and tax rates also kept returns lower.  But utility results also saw a boost from higher weather-normalized sales and higher revenues from increased pricing and riders "due to increased energy efficiency programs and prior-year true-ups that did not recur," the company said.

Duke is continuing to develop the Lee Nuclear Station in Gaffney, S.C., though the project has been delayed due to slower demand growth. Charlotte Business News reports the company's expenses have slowed dramatically this year, spending just $21.7 million in the first half of 2015 on development. Since beginning development in 2007, Duke has spent almost $450 million on development.

The company is on pace to spend about $45 million this year on the Lee project, down from a peak of $62 million in 2012.