American Electric Power Backs 2022 Earnings View After 1Q Net Rises on Higher Revenue

By Rob Curran

American Electric Power Co. affirmed its 2022 growth projections based on rising demand in the Midwestern and Southern territory it serves, following a 24% rise in first-quarter earnings on higher revenue from its electricity-generation and -distribution businesses.

The Columbus, Ohio utility posted earnings of $714.7 million, or $1.41 a share for the quarter, up from $575 million, or $1.16 a share, a year earlier.

AEP, which operates utilities in several states, including Ohio, Virginia, West Virginia, Michigan and Kentucky, said first-quarter revenue rose to $4.6 billion from $4.3 billion.

AEP reiterated its projections for 2022 operating earnings, excluding certain items, in a range of $4.87 to $5.07 a share. AEP forecast net earnings of $5.06 to $5.26 a share.

"We expect to close on the sale of our Kentucky operations to Liberty, the regulated utility subsidiary of Algonquin Power & Utilities Corp, in the second quarter following regulatory approvals, and we continue to share with our stakeholders the significant benefits the sale will provide to customers and communities in eastern Kentucky," Chairman, President and Chief Executive Nicholas Akins said.

AEP has agreed to sell an Ohio solar-development project and signed a term sheet for the sale of five other wind-and-solar developments in the Midwest. AEP plans to shop around its 1,600-megawatt portfolio of unregulated contracted renewable-energy assets in the second half of the year, with proceeds to be invested in its regulated utility operations. The company said it is making progress toward its goals of generating 50% of its capacity from renewable sources by the end of this decade and producing net zero emissions by 2050.

"We continue to see strong momentum with load growth across most of our territory and sectors of the economy," Mr. Akins said.

Write to Rob Curran at

(END) Dow Jones Newswires

April 28, 2022 07:43 ET (11:43 GMT)

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