Dive Brief:
- Ameren's third quarter 2014 operating earnings were $294 million, and $1.20 per share, down from Q3 2013’s $305 million, and $1.25 per share. Operating earnings for the first nine months of 2014 were $541 million, and $2.21 per share, up from 2013 first nine months operating earnings of $464 million, and $1.91 per share.
- The drop in Q3 operating earnings was due to milder summer temperatures, a higher income tax burden, and increased operating costs. The losses more than offset earnings from electricity transmission and natural gas delivery services and reduced interest rates.
- Changes in operating earnings were largely due to increased maintenance charges in 2014 for the Callaway Nuclear Energy Center that it had in the same period in 2013.
Dive Insight:
While nuclear plant costs hurt Ameren's third quarter numbers, the utility benefited from electricity transmission and natural gas delivery service earnings. Earnings from the colder winter also helped partially offset the milder summer’s decreased earnings.
As a result of its Q3 performance, Ameren reduced its full year 2014 per share operating earnings forecast to between $2.30 and $2.45, down from the previous per share earnings forecast of between $2.30 and $2.50.
Ameren still expects per share earnings to grow at a 7% to 10% compound annual rate from 2013 through 2018 from its infrastructure investments.
Ameren continues to work on "key energy infrastructure projects,” according to President/Chair/CEO Warner L. Baxter. In Missouri, it is “placing into service the largest investor-owned solar facility in the state.” In Illinois, it is proceeding with a “grid modernization plan, including installation of advanced electric and gas meters.”
