Summary
Duke Energy Corporation's second quarter 2009 report shows a decrease in operating revenues and net income compared to the same period in 2008. Total operating revenues declined due to lower demand and reduced energy prices, particularly impacting the U.S. Franchised Electric and Gas segment. Net income attributable to Duke Energy Corporation decreased to $276 million from $351 million in the prior year's second quarter, with diluted EPS falling to $0.21 from $0.28. This decline was attributed to lower operating income across most segments, especially Commercial Power, and increased operating expenses in some areas like fuel and maintenance. Despite these challenges, the company highlighted increased revenue in its Commercial Power segment due to higher retail pricing and increased generation volumes, and maintained compliance with its debt covenants. The company continued to manage its business through various strategic initiatives, including capital expenditures for plant upgrades and expansion projects, while also addressing regulatory matters and potential environmental liabilities. The balance sheet reflects an increase in property, plant and equipment, indicating ongoing investment in infrastructure. Liquidity remained stable, with cash flows from operations supporting investing and financing activities, although net cash provided by operations decreased year-over-year.
Financial Highlights
50 data points| Revenue | $2.91B |
| Operating Expenses | $2.40B |
| Operating Income | $528.00M |
| Interest Expense | $186.00M |
| Net Income | $276.00M |
| EPS (Basic) | $0.63 |
| EPS (Diluted) | $0.63 |
| Shares Outstanding (Basic) | 429.33M |
| Shares Outstanding (Diluted) | 429.67M |
Key Highlights
- 1Net income attributable to Duke Energy Corporation decreased to $276 million ($0.21/share) for Q2 2009 from $351 million ($0.28/share) in Q2 2008.
- 2Total operating revenues decreased by $316 million to $2,913 million in Q2 2009 compared to $3,229 million in Q2 2008, primarily due to lower demand and energy prices.
- 3U.S. Franchised Electric and Gas segment EBIT decreased by $3 million to $500 million in Q2 2009 from $503 million in Q2 2008, driven by lower sales volumes and milder weather.
- 4Commercial Power segment EBIT saw a significant decrease of $156 million to $79 million in Q2 2009 from $235 million in Q2 2008, largely due to lower mark-to-market results on hedges and increased operating expenses.
- 5International Energy segment EBIT decreased by $48 million to $68 million in Q2 2009 from $116 million in Q2 2008, due to lower sales prices and equity earnings from affiliates.
- 6Net cash provided by operating activities decreased to $1,017 million for the six months ended June 30, 2009, from $1,695 million in the same period of 2008.
- 7The company increased its common stock dividend from $0.23 per share to $0.24 per share, effective with the June 2009 declaration.