NEW ORLEANS, April 15, 2014 /PRNewswire/ -- Entergy
Corporation (NYSE: ETR) today indicated that it expects first
quarter 2014 as-reported earnings of approximately $2.23 per share and operational earnings of
approximately $2.28 per share.
Results for first quarter 2013 were $0.90 per share on an as-reported basis and
$0.94 per share on an operational
basis. Strong first quarter 2014 earnings resulted from
significantly higher realized wholesale energy prices at Entergy
Wholesale Commodities, reflecting cold winter weather and northeast
pipeline infrastructure limitations, which reinforces the need for
a diverse generation portfolio and the value of existing nuclear
generation facilities in the region. The Utility also saw higher
earnings on colder-than-normal temperatures. Entergy also raised
its 2014 operational earnings guidance to be in the range of
$5.55 to $6.75 per share.
As-reported results are prepared in accordance with generally
accepted accounting principles and are comprised of operational
earnings and special items. Special items in first quarter 2014
were recorded arising from the decision to close the Vermont Yankee
Nuclear Power Station later this year and the human capital
management strategic imperative. First quarter 2013 included a
special item for the proposed transmission spin-merge
transaction.
The increase in first quarter 2014 earnings was driven by higher
results at Entergy Wholesale Commodities and Utility. On a
consolidated basis, the preliminary estimate for the effective
income tax rate was approximately 35 percent in first quarter
2014.
Entergy Wholesale Commodities
Significantly higher realized wholesale energy prices were the
biggest factor driving the quarter-over-quarter increase in
operational earnings at Entergy Wholesale Commodities. EWC's
hedging strategies routinely include financial instruments that
balance operational and liquidity risk through participation in
rising power price markets. These positions, in addition to a
larger-than-normal unhedged position in 2014 due to Vermont Yankee
being in its final operating year, allowed EWC to benefit from the
increases in northeast market power prices throughout the quarter.
Along with the realization of these positions, revenues also
reflected the turnaround of the negative mark-to-market loss
recorded in fourth quarter 2013 associated with certain
transactions.
A lower effective income tax rate was another factor
contributing to higher quarterly earnings. These items were
partially offset by higher depreciation expense following the
finalization of a new depreciation rate study.
Utility
The increase in Utility first quarter 2014 operational earnings
was due primarily to higher net revenue reflecting higher sales
volume, primarily weather. The weather effect was approximately
$0.18 per share in first quarter
2014, compared to unfavorable weather of negative $(0.10) per share in the comparable period. In
addition, non-fuel operation and maintenance expense was lower.
Parent & Other
Parent & Other's operational results were essentially flat
versus the first quarter of last year. No individual item was
significant.
Earnings Guidance
As a result of higher northeast spot and forward prices and
market volatility at EWC and favorable weather at the Utility in
the first quarter, Entergy raised its 2014 operational earnings
guidance and widened the range to be $5.55
to $6.75 per share. Entergy had previously noted that, based
on assumptions as of Dec. 31, 2013,
indications were near the upper end of the prior $4.60 to $5.40 per share guidance range.
Earnings Results Schedule
Entergy will report first quarter earnings results before the
market opens on Thursday, April 24,
2014, and host a teleconference at 10
a.m. CT that day to discuss the earnings announcement and
the company's financial performance. The teleconference may be
accessed by dialing (719) 325-2115, confirmation code 6761108, no
more than 15 minutes prior to the start of the call or by visiting
Entergy's website at www.entergy.com. The presentation slides also
will be available on Entergy's website before the market opens on
the day of the call. A replay of the teleconference will be
available for seven days thereafter by dialing (719) 457-0820,
confirmation code 6761108.
Entergy Corporation is an integrated energy company engaged
primarily in electric power production and retail distribution
operations. Entergy owns and operates power plants with
approximately 30,000 megawatts of electric generating capacity,
including more than 10,000 megawatts of nuclear power, making it
one of the nation's leading nuclear generators. Entergy delivers
electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of more
than $11 billion and approximately
14,000 employees.
Additional investor information can be
accessed online at
www.entergy.com/investor_relations.
In this news release, and from time to time, Entergy
Corporation makes certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Except to the extent required by the federal securities laws,
Entergy undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Forward-looking statements involve a number of risks and
uncertainties. There are factors that could cause actual results to
differ materially from those expressed or implied in the
forward-looking statements, including (a) those factors discussed
in this news release and in: (i) Entergy's most recent Annual
Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q
and (ii) Entergy's other reports and filings made under the
Securities Exchange Act of 1934; (b) uncertainties associated with
rate proceedings, formula rate plans and other cost recovery
mechanisms; (c) uncertainties associated with efforts to remediate
the effects of major storms and recover related restoration costs;
(d) nuclear plant relicensing, operating and regulatory risks,
including any changes resulting from the nuclear crisis in Japan
following its catastrophic earthquake and tsunami; (e) legislative
and regulatory actions and risks and uncertainties associated with
claims or litigation by or against Entergy and its subsidiaries;
and (f) economic conditions and conditions in commodity and capital
markets during the periods covered by the forward-looking
statements, in addition to other factors described elsewhere in
this release and subsequent securities filings.
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SOURCE Entergy Corporation