10-QPeriod: Q1 FY2013

AMEREN CORP Quarterly Report for Q1 Ended Mar 31, 2013

Filed May 10, 2013For Securities:AEE

Summary

Ameren Corporation (AEE) reported a net loss attributable to Ameren Corporation of $145 million, or $(0.60) per share, for the first quarter of 2013, an improvement from the $403 million net loss, or $(1.66) per share, in the first quarter of 2012. This improvement was primarily driven by stronger performance from its rate-regulated utility segments, Ameren Missouri and Ameren Illinois. Favorable factors included colder winter weather leading to increased electric and gas sales volumes, the implementation of new rates for Ameren Missouri electric and Ameren Illinois transmission services, and the absence of a significant donation that impacted prior-year results. However, these positive drivers were partially offset by lower electric delivery service revenues in Illinois due to timing variations in recoverable costs and higher non-fuel operating expenses in Missouri. The company continued its strategic plan to exit its non-rate-regulated Merchant Generation business, entering into an agreement to divest New AER and its associated energy centers. This divestiture, along with the sale of other gas-fired energy centers, is intended to allow Ameren to focus exclusively on its core rate-regulated operations. While the company remains focused on enhancing its regulatory frameworks and cost recovery mechanisms, investors should note the ongoing legal and regulatory proceedings that could impact future financial results.

Financial Statements
Beta
Revenue$1.48B
Operating Expenses$1.29B
Operating Income$185.00M
Interest Expense$101.00M
Net Income-$145.00M
EPS (Basic)$-0.60
EPS (Diluted)$-0.60
Shares Outstanding (Basic)242.60M

Key Highlights

  • 1Net loss attributable to Ameren Corporation improved significantly to $145 million ($0.60/share) from $403 million ($1.66/share) in the prior year's quarter.
  • 2Income from continuing operations increased to $54 million ($0.22/share) from $37 million ($0.15/share) due to improved performance at Ameren Missouri and Ameren Illinois.
  • 3Colder weather and new rate implementations positively impacted earnings, while lower electric delivery revenues in Illinois and higher Missouri operating expenses were headwinds.
  • 4Ameren is divesting its non-rate-regulated Merchant Generation business, entering into an agreement to sell New AER and related energy centers to focus on its core utility operations.
  • 5Capital expenditures for continuing operations were $291 million, primarily for infrastructure improvements and environmental compliance.
  • 6The company maintained strong liquidity with $2.06 billion in available credit capacity under its credit agreements.
  • 7Ameren's credit ratings remained stable, supporting its access to capital markets for future financing needs.

Frequently Asked Questions

The primary driver for the improved earnings was the stronger performance from Ameren's rate-regulated utility segments, Ameren Missouri and Ameren Illinois. Favorable factors included colder winter weather leading to increased electric and gas sales volumes, the implementation of new rates for Ameren Missouri electric and Ameren Illinois transmission services, and the absence of a significant donation that impacted prior-year results.

Ameren has entered into a transaction agreement to divest its non-rate-regulated Merchant Generation business, specifically New AER and associated energy centers. This divestiture is subject to regulatory approvals and is expected to close in the fourth quarter of 2013. The company is also pursuing the sale of other gas-fired energy centers. This strategic move aims to allow Ameren to concentrate solely on its core rate-regulated utility operations.

Key risks and uncertainties include ongoing regulatory proceedings that could affect cost recovery and future rate filings, potential impacts from environmental regulations requiring significant capital expenditures, and the successful completion of the divestiture of the Merchant Generation business. There is also exposure to commodity price volatility, although this is largely mitigated by cost recovery mechanisms in regulated operations.