Summary
Consolidated Edison, Inc. (Con Edison) reported its first-quarter 2016 results, showing a year-over-year decrease in net income. The primary driver for this decline was a $60 million negative impact attributed to factors such as unusually warm weather affecting steam revenues and increased operations and maintenance expenses, partially offset by favorable rate plan adjustments. While the core utility businesses (CECONY and O&R) demonstrated stable performance with net income contributing the vast majority of the consolidated earnings, the competitive energy businesses experienced a net loss, largely due to mark-to-market losses and retail electric supply business impacts. Despite the quarterly dip in earnings, Con Edison continues to execute its long-term strategy focused on shareholder value through dividend growth, supported by investments in regulated utilities and contracted assets. The company is actively expanding its investments in renewable energy and transmission infrastructure, including a significant planned acquisition in a gas pipeline and storage joint venture, which has led to an upward revision of its 2016 capital expenditure forecast. The company's financial health remains solid, with strong coverage ratios and a stable common equity ratio, indicating continued operational resilience.
Financial Highlights
44 data points| Revenue | $3.16B |
| Operating Expenses | $2.51B |
| Operating Income | $642.00M |
| Interest Expense | $163.00M |
| Net Income | $310.00M |
| EPS (Basic) | $1.05 |
| EPS (Diluted) | $1.05 |
| Shares Outstanding (Basic) | 293.70M |
| Shares Outstanding (Diluted) | 294.80M |
Key Highlights
- 1Consolidated net income for Q1 2016 decreased to $310 million from $370 million in Q1 2015, a decline of approximately 16.2%, primarily driven by weather impacts and higher expenses.
- 2CECONY, the principal subsidiary, generated $310 million in net income, a decrease from $348 million in the prior year, impacted by unusually warm weather affecting steam revenues.
- 3The competitive energy businesses reported a net loss of $30 million in Q1 2016, a significant deterioration from a net income of $2 million in Q1 2015, largely due to $38 million in after-tax mark-to-market losses and $33 million in losses from the retail electric supply business.
- 4Con Edison increased its 2016 capital expenditure forecast to $5,867 million, up from $4,892 million, to accommodate the planned acquisition of a 50% equity interest in a gas pipeline and storage joint venture.
- 5The company's financial stability is supported by a consistent ratio of earnings to fixed charges, which remained strong at 3.64 for Con Edison and 4.09 for CECONY in Q1 2016.
- 6Con Edison is actively investing in renewable energy, with its development subsidiary owning or constructing over 984 MW (AC) of solar and wind projects.
- 7The company is also expanding its transmission infrastructure investments through Con Edison Transmission, notably agreeing to acquire a 50% interest in a significant gas pipeline and storage business.