Entergy Provides Preliminary First Quarter Earnings Guidance
– By Linton Levy –
Entergy Corporation today indicated that it expects first quarter 2009 as-reported earnings of approximately $1.19 per share and operational earnings of approximately $1.28 per share compared to as-reported and operational results of $1.56 per share in first quarter 2008. Entergy also affirmed previously issued earnings guidance.
Earnings Highlights for First Quarter 2009
- Entergy Nuclear earnings decreased primarily due to additional planned refueling outage days during the quarter, an impairment recognized on certain decommissioning trust fund investments, and a special item associated with the planned spin-off.
- Utility, Parent & Other results were lower due to higher other taxes, depreciation and amortization expenses, and a special item related to the planned spin-off.
- Entergy's non-nuclear wholesale assets business results were essentially flat.
As-reported results are prepared in accordance with generally accepted accounting principles and are comprised of operational earnings (described below) and special items. As-reported earnings in first quarter 2009 will include a special item at Entergy Nuclear for spin-off dis-synergies. Utility, Parent & Other results will include a special item for expenses for outside services provided during the quarter to pursue the non-utility nuclear spin-off.
Entergy Nuclear
The quarter-over-quarter decrease in operational earnings at Entergy Nuclear is attributed to lower revenue primarily resulting from two planned refueling outages commencing during the quarter at Indian Point 3 and Palisades totaling 30 days compared to seven refueling outage days at Indian Point 2 a year ago and an impairment recorded in the current period on certain decommissioning trust investments. Also contributing to the decrease was lower revenue amortization for the Palisades below-market Power Purchase Agreement, as well as higher operation and maintenance expense.
Utility, Parent & Other
Utility, Parent & Other operational results in first quarter 2009 were lower compared to earnings in first quarter 2008 due primarily to higher other taxes and depreciation and amortization expenses. Net revenue at the Utility was essentially flat, despite reporting lower sales volume. The effect of milder-than-normal weather in first quarter 2009 was roughly in line with the weather impact experienced in the same quarter last year.
Earnings Guidance
Entergy affirmed previously issued as-reported earnings guidance for 2009 of $6.56 to $7.16 per share and operational earnings guidance of $6.70 to $7.30 per share. Entergy indicated that should the current economic climate and power prices on Entergy Nuclear's open position persist for the balance of the year, earnings could approach the lower end of the ranges.
A teleconference will be held at 10:00 a.m. CT on May 4, 2009, to discuss Entergy's first quarter 2009 earnings announcement, and may be accessed by dialing (719) 457-2080, confirmation code 8064872, no more than 15 minutes prior to the start of the call. The call and presentation slides can also be accessed via Entergy's Web site at www.entergy.com. A replay of the teleconference will be available for seven days thereafter by dialing (719) 457-0820, confirmation code 8064872.
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, and it is the second-largest nuclear generator in the United States. Entergy delivers electricity to 2.7 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of more than $13 billion and approximately 14,700 employees.