Summary
Consolidated Edison, Inc. (Con Edison) reported strong performance for the fiscal year ended December 31, 2018, driven primarily by its regulated utility operations in New York City and Westchester County, executed through its subsidiary Consolidated Edison Company of New York (CECONY), and to a lesser extent, Orange and Rockland Utilities (O&R). The company demonstrated resilience through its diverse business segments, including regulated utilities and contracted clean energy assets. Key financial highlights include stable operating revenues from utility operations, supported by effective rate plan mechanisms that mitigate volume fluctuations. Investments in infrastructure, particularly for reliability and resilience, continue to be a strategic focus, contributing to the company's long-term growth outlook. Despite some headwinds from increased operational and maintenance expenses and higher interest expenses, Con Edison managed its capital structure effectively, maintaining a solid common equity ratio and credit ratings.
Financial Highlights
49 data points| Revenue | $12.34B |
| R&D Expenses | $24.00M |
| Operating Expenses | $9.80B |
| Operating Income | $2.66B |
| Interest Expense | $780.00M |
| Net Income | $1.38B |
| EPS (Basic) | $4.43 |
| EPS (Diluted) | $4.42 |
| Shares Outstanding (Basic) | 311.70M |
| Shares Outstanding (Diluted) | 312.90M |
Key Highlights
- 1CECONY's electric segment reported stable operating revenues, with a revenue decoupling mechanism mitigating volume fluctuations, while gas operations saw increased revenues due to higher rates and customer growth.
- 2O&R's electric operations experienced increased purchased power expenses, while gas operations saw higher purchased gas costs, impacting overall profitability slightly.
- 3The Clean Energy Businesses saw a significant boost in operating revenues, largely driven by the acquisition of Sempra Solar Holdings, LLC, and expansion of renewable electric production projects, despite a notable increase in operations and maintenance and net interest expenses.
- 4Con Edison Transmission's investments, particularly in the Mountain Valley Pipeline project, contributed positively to other income, though interest expenses increased due to funding these investments.
- 5The company maintained a disciplined approach to capital expenditures, focusing on maintaining the reliability and resilience of its utility infrastructure, with significant investments directed towards electric distribution and gas operations.
- 6Total operating revenues for Con Edison increased to $12.34 billion in 2018, driven by growth across its utility and clean energy segments.
- 7Net income for Con Edison decreased slightly to $1.38 billion in 2018 from $1.53 billion in 2017, primarily due to higher interest expenses and the income tax effect of the TCJA on non-utility businesses.