Dive Brief:
- Entergy Corp. announced earnings for the first quarter of 2014 were at $401.2 million—a 40% increase from the first quarter of 2013. The company experienced strong growth in their utilities earnings—up to $203.4 million compared to the $129.8 million reported this time last year.
- Sales were up 2.1% over last year: Industrial sales saw the biggest rise, up 2.5% compared to first quarter 2013, while residential sales increased 1.9%, and commercial sales rose 2.2%. Governmental sales decreased by 0.1%.
- Two of the company’s utility subsidiaries, Entergy Louisiana LLC and Entergy Gulf States Louisiana, are considering a merger to improve financial management.
Dive Insight:
Electric sales were “consistent with our expectation for continued sales growth,” said Entergy CEO Leo Denault. Entergy’s healthy sales growth reflect, in part, the spike in electricity demand caused by last winter’s poor weather.
Entergy was better equipped to cope with the bad weather as nearly a third of the company’s generation comes from nuclear power. “The cold weather we experienced this past winter put stress on the power and gas systems, driving volatility and higher prices,” said Denault, adding that the company’s strong earnings “highlighted the diversification value of our nuclear assets.”
Entergy produces about 30,000 MW of electricity. The company serves 2.8 million customers in Arkansas, Louisiana, Mississippi, and Texas. It has annual revenues of more than $11 billion.
