Summary
Duke Energy Corporation (DUK) reported its second quarter 2013 financial results, showing a mixed performance impacted by the recent merger with Progress Energy and operational factors. For the three months ended June 30, 2013, consolidated net income attributable to Duke Energy Corporation was $339 million, or $0.48 per diluted share, a decrease from $444 million, or $0.99 per diluted share, in the prior year's quarter. This decline was significantly influenced by a $180 million impairment charge related to Duke Energy Florida's Crystal River Unit 3 retirement and Levy investments, as well as lower contributions from non-regulated businesses and less favorable weather conditions. However, the inclusion of Progress Energy's results since July 2012 contributed positively to revenue and operational scale, partially offsetting these headwinds. For the six months ended June 30, 2013, net income attributable to Duke Energy Corporation was $973 million, or $1.37 per diluted share, compared to $739 million, or $1.65 per diluted share, for the same period in 2012. The year-to-date performance reflects the integration of Progress Energy and favorable weather impacts, which were counteracted by significant impairment charges, higher merger integration costs, and lower results in international operations. The company's capital expenditures remain substantial as it invests in fleet modernization and infrastructure, supported by strong operating cash flows.
Financial Highlights
48 data points| Revenue | $5.39B |
| Operating Expenses | $5.06B |
| Operating Income | $742.00M |
| Interest Expense | $381.00M |
| Net Income | $339.00M |
| EPS (Basic) | $0.48 |
| EPS (Diluted) | $0.48 |
| Shares Outstanding (Basic) | 706.00M |
| Shares Outstanding (Diluted) | 706.00M |
Key Highlights
- 1Consolidated net income attributable to Duke Energy Corporation decreased to $339 million ($0.48/share) for Q2 2013 from $444 million ($0.99/share) in Q2 2012.
- 2A significant impairment charge of $180 million (after-tax) related to Crystal River Unit 3 and Levy investments impacted the USFE&G segment and overall earnings.
- 3Operating revenues increased significantly year-over-year due to the inclusion of Progress Energy's results following the merger completion in July 2012.
- 4Operating cash flow for the first six months of 2013 was robust at $2.84 billion, an increase from $2.00 billion in the prior year period, supporting ongoing capital investments.
- 5Capital expenditures for the first six months of 2013 were $2.72 billion, up from $2.25 billion in the prior year, reflecting continued investment in the business.
- 6The company highlighted regulatory developments, including proposed rate increases in North Carolina and South Carolina, and ongoing reviews by the FPSC concerning Crystal River Unit 3 and Levy projects.