Dive Brief:
- Entergy Corp. reported second quarter earnings of $148.8 million, compared with $189.4 million during the same quarter a year ago.
- The utility saw industrial sales decline 1.5%, with operational results also impacted by higher expenses.
- But company officials say Entergy remains on track to meet its 2015 earnings guidance of $5.10 to $5.90/share, and expect expansions and industrial growth to fuel demand in the future.
Dive Insight:
Entergy posted lower results in the second quarter, but officials said the earnings were in line with expectations and they continue to execute a strategy of modernizing infrastructure and accessing new demand.
"Once again, financial results in the second quarter were in line with our expectations," Entergy Chairman and CEO Leo Denault said in a statement. "The utility continues to implement its program to replace aging infrastructure, strengthen reliability and enhance the environmental profile of our generation fleet."
"The industrial expansion across our service territory also continues to advance," he added. "And Entergy Wholesale Commodities, despite market volatility, maintained solid operational and commercial performance."
Second quarter utility earnings were $1.11/share compared with $1.15/share last year. The company said results reflected sales growth, productive investments and higher operating expenses. But ultimately sales were a challenge.
Entergy said billed retail sales volume increased quarter-to-quarter on the effects of weather and residential sales growth. But on a weather-adjusted basis, billed volume declined 0.5%.The fall included a 0.2% decline in commercial sales and a 1.5% decline in industrial sales.
New industrial and expansion projects continued to ramp-up during the quarter, but billed industrial volume still declined, in part due to extended seasonal outages for large refineries. But on a revenue basis, Entergy said sales growth, including weather-adjusted residential sales resulted in a quarter-over-quarter positive revenue contribution.
