Summary
Ameren Corporation's 2011 10-K filing highlights a period of recovery and strategic adjustments. The company reported a significant increase in net income to $519 million, or $2.15 per share, compared to $139 million, or $0.58 per share, in 2010. This improvement was largely driven by reduced goodwill, impairment, and other charges, particularly within the Merchant Generation segment, which helped offset a disallowance charge recorded by Ameren Missouri. Operationally, Ameren Missouri and Ameren Illinois continued to navigate regulatory frameworks, seeking rate increases and implementing cost recovery mechanisms. Ameren Illinois' election to participate in Illinois' performance-based formula ratemaking process under the IEIMA signals a move towards greater earnings predictability and supports infrastructure investment. The company is also focused on managing costs and capital expenditures, especially within the Merchant Generation segment, in response to lower power prices. Significant capital investments are planned for transmission infrastructure and environmental compliance over the next five years.
Financial Highlights
48 data points| Revenue | $6.15B |
| Operating Expenses | $5.12B |
| Operating Income | $1.03B |
| Interest Expense | $387.00M |
| Net Income | $519.00M |
| EPS (Basic) | $2.15 |
| EPS (Diluted) | $2.15 |
| Shares Outstanding (Basic) | 241.50M |
| Shares Outstanding (Diluted) | 242.10M |
Key Highlights
- 1Net income attributable to Ameren Corporation increased significantly to $519 million in 2011, up from $139 million in 2010, primarily due to a reduction in impairment charges.
- 2Ameren Illinois elected to participate in the Illinois Energy Infrastructure Modernization Act's (IEIMA) performance-based formula ratemaking process for electric delivery service, aiming for improved earnings predictability.
- 3Ameren Missouri received rate increases for its electric and natural gas businesses in 2011 and filed a new electric rate case in early 2012 seeking further increases.
- 4The Merchant Generation segment faced pressure from lower realized power prices, leading to strategic adjustments including decelerating capital spending on scrubber projects.
- 5Ameren plans substantial capital expenditures of $6.5 billion to $8.3 billion from 2012-2016, focusing on regulated utility infrastructure, environmental compliance, and electric transmission projects.
- 6The company's liquidity remains adequate, with approximately $2.2 billion in available liquidity at year-end 2011, an increase from the previous year.
- 7Environmental regulations continue to be a significant factor, potentially requiring substantial capital expenditures and impacting operating costs for Ameren's coal-fired generation assets.