Summary
Consolidated Edison, Inc. (Con Edison) and its subsidiary, Consolidated Edison Company of New York, Inc. (CECONY), reported a decrease in net income for the first quarter of 2012 compared to the same period in 2011. This decline was primarily driven by lower revenues from the competitive energy businesses, particularly Con Edison Solutions, which experienced mark-to-market losses and reduced sales volumes. The regulated utility segments, CECONY and Orange and Rockland Utilities (O&R), showed mixed results with CECONY's electric operations seeing an increase in operating income due to rate adjustments, while its gas and steam operations experienced lower revenues. O&R's electric segment also saw a slight decrease in operating income. Despite the overall decrease in net income, the company maintained a strong liquidity position, with Con Edison's cash and temporary cash investments increasing significantly by the end of the quarter. Investing activities saw increased utility construction expenditures, while financing activities were influenced by CECONY's issuance of new long-term debt. The company's financial health remains underpinned by its regulated utility operations and the ongoing implementation of rate plans designed to recover operating costs and ensure a reasonable return.
Financial Highlights
44 data points| Revenue | $3.08B |
| Operating Expenses | $2.52B |
| Operating Income | $561.00M |
| Interest Expense | $145.00M |
| Net Income | $277.00M |
| EPS (Basic) | $0.95 |
| EPS (Diluted) | $0.94 |
| Shares Outstanding (Basic) | 292.90M |
| Shares Outstanding (Diluted) | 294.50M |
Key Highlights
- 1Net income for common stock decreased to $277 million ($0.95/share basic, $0.94/share diluted) in Q1 2012 from $311 million ($1.07/share basic, $1.06/share diluted) in Q1 2011.
- 2Total operating revenues decreased to $3,078 million in Q1 2012 from $3,349 million in Q1 2011, primarily due to lower revenues in the competitive energy businesses.
- 3CECONY's electric operating income increased by $7 million to $224 million, driven by higher net revenues from rate plans, though offset by increased operations and maintenance expenses.
- 4CECONY's gas and steam operating revenues decreased by $100 million and $62 million, respectively, mainly due to lower purchased gas and fuel costs and, for steam, milder weather impacting volumes.
- 5Con Edison's cash and temporary cash investments increased to $769 million at March 31, 2012, from $648 million at December 31, 2011.
- 6CECONY issued $400 million of 4.20 percent 30-year debentures in March 2012, with a portion used to redeem preferred stock.
- 7The company continues to face regulatory scrutiny, including an ongoing NYSPSC proceeding to examine prudence of certain expenditures, with a portion of revenues collected subject to potential refund.