Summary
Consolidated Edison, Inc. (Con Edison) reported solid financial results for the first quarter of 2018, demonstrating resilience in its core utility operations and growth in its clean energy segment. The company's primary subsidiary, Consolidated Edison Company of New York, Inc. (CECONY), and Orange and Rockland Utilities, Inc. (O&R) generated stable revenues from regulated electric, gas, and steam delivery businesses. Despite some weather-related cost increases, the regulated nature of these businesses, supported by rate plans and revenue decoupling mechanisms, provided a predictable earnings stream. The Clean Energy Businesses continued to expand, contributing positively to overall net income, driven by increased revenues from renewable electric production and engineering, procurement, and construction services. While Con Edison Transmission's contribution to net income was modest, its investments in critical infrastructure projects position it for future growth. The company's strong financial position is underpinned by consistent operating cash flows and a healthy common equity ratio, enabling continued investment in infrastructure and shareholder returns.
Financial Highlights
44 data points| Revenue | $3.36B |
| Operating Expenses | $2.61B |
| Operating Income | $755.00M |
| Interest Expense | $190.00M |
| Net Income | $428.00M |
| EPS (Basic) | $1.38 |
| EPS (Diluted) | $1.37 |
| Shares Outstanding (Basic) | 310.40M |
| Shares Outstanding (Diluted) | 311.60M |
Key Highlights
- 1Net income for Con Edison increased to $428 million in Q1 2018, up from $388 million in Q1 2017, reflecting growth across its utility and clean energy segments.
- 2CECONY's electric and gas operations saw increased revenues due to rate plan adjustments effective January 1, 2018, contributing to higher operating income.
- 3The Clean Energy Businesses reported a significant increase in operating revenues, primarily driven by growth in renewable electric production projects and engineering, procurement, and construction services.
- 4Despite storm-related costs impacting operations and maintenance expenses for the utilities, the overall financial performance remained strong.
- 5Con Edison benefited from lower income tax expenses due to the Tax Cuts and Jobs Act (TCJA) of 2017, with estimated net benefits deferred as a regulatory liability.
- 6The company maintained a strong financial position, with a common equity ratio of 51.5% for Con Edison and 51.2% for CECONY at March 31, 2018, indicating robust capitalization.
- 7Cash flows from operating activities for Con Edison were $143 million and for CECONY were $56 million in Q1 2018, showing a decrease compared to the prior year, partly due to increased restoration costs for Puerto Rico and storm events.