Dive Brief:
- Entergy Corp. reported lower 2015 first quarter earnings of $1.68 on an operational basis, compared to first quarter 2014 operational returns of $2.29/share.
- On the company's utility side, however, earnings were higher due in part to increased industrial sales.
- Argus Media reports the company's six utility units have seen about $240 million in benefits in the first year since integrating with the Midcontinent Independent System Operator.
Dive Insight:
Entergy Chairman and CEO Leo Denault called it a "productive" first quarter, and said that the company's performance, results and growth continue to be in line with expectations. While overall earnings fell, utility earnings were $1.24/share on an operational basis, up from $1.13/share in the same quarter a year ago.
“The utility experienced its seventh straight quarter of industrial sales growth," Denault said in the company's earnings statement. "We continued filling in the details of our resource plan, including the announcement of a new transmission project in Arkansas. We also took important steps to strengthen regulatory frameworks, in part by supporting the passage of new legislation in Arkansas and Mississippi and preparing for a pivotal rate case filing in Arkansas.”
The improved operational results on the utility side were the result of industrial sales growth, modest weather-adjusted growth in the residential and commercial classes, and productive investments and customer programs, the company said. Billed retail sales increased 1.5% on a weather-adjusted basis.
Denault told investors and analysts during the company's earnings call that utility units had seen about $240 million in benefit since integrating operations with the Midcontinent ISO, a result of not having to run less-efficient generators as frequently.
Entergy will invest more than $3.5 billion to bring six new plants online in the next six years; Argus noted two would be added to support industrial growth in Louisiana.
The company also affirmed its 2015 operational earnings guidance, in the range of $5.10 to $5.90/share.
