10-QPeriod: Q3 FY2021

CONSOLIDATED EDISON INC Quarterly Report for Q3 Ended Sep 30, 2021

Filed November 4, 2021For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) reported solid financial results for the third quarter and first nine months of 2021, demonstrating resilience amidst ongoing COVID-19 impacts. The company's regulated utility businesses, primarily CECONY and O&R, showed stable performance, driven by regulated rate base growth and effective cost management. Con Edison's Clean Energy Businesses also contributed positively with increased revenues from renewable energy projects. Despite challenges like supply chain disruptions and the lingering economic effects of the pandemic, Con Edison maintained its focus on reliable energy delivery and strategic investments. The company's financial health appears robust, supported by strong operating cash flows and access to capital markets. Management remains committed to shareholder value through continued dividend growth, underpinned by earnings growth from regulated utilities and contracted energy assets.

Financial Highlights

41 data points
Beta

Revenue

$3.61B

Net Income

$538.00M

14.9% Net Margin

EPS (Diluted)

$1.52

Total Assets

$62.94B

Cash & Equivalents

$66.00M

Free Cash Flow

$319.00M

Financial Statements
Beta
Revenue$3.61B
Operating Expenses$2.76B
Operating Income$850.00M
Interest Expense$235.00M
Net Income$538.00M
EPS (Basic)$1.52
EPS (Diluted)$1.52
Shares Outstanding (Basic)353.40M
Shares Outstanding (Diluted)354.10M

Key Highlights

  • 1Net income for common stock increased to $538 million for the three months ended September 30, 2021, up from $493 million in the prior year period, and to $1,122 million for the nine months ended September 30, 2021, up from $1,058 million in the prior year period.
  • 2CECONY, the largest subsidiary, reported an increase in operating revenues to $3,092 million for the three months ended September 30, 2021, up from $2,872 million in the prior year period, driven by higher electric rate plan revenues.
  • 3The Clean Energy Businesses saw a significant increase in operating revenues to $264 million for the three months ended September 30, 2021, up from $222 million in the prior year period, primarily due to higher revenue from renewable electric production projects.
  • 4Con Edison Transmission recorded a significant net loss for the nine months ended September 30, 2021, primarily due to a pre-tax impairment loss of $211 million related to its investment in Stagecoach.
  • 5The company continues to manage the impacts of COVID-19, including increased allowances for uncollectible accounts and specific relief measures for customers, while maintaining essential services.
  • 6Capital expenditures for 2021 are estimated to be $6,065 million, with plans to fund requirements through internally generated funds and the issuance of long-term debt and common equity.
  • 7Con Edison maintains a strong liquidity position, with $2,250 million in available credit, and has not drawn on this facility.

Frequently Asked Questions

CECONY and O&R, Con Edison's primary regulated utilities, showed stable performance. CECONY's electric operating revenues increased due to its electric rate plan, while gas operations also saw revenue growth. O&R's electric operations experienced a slight decrease in operating income, but its gas operations showed revenue growth.

The Clean Energy Businesses are a growing contributor to Con Edison's overall results. For the third quarter of 2021, they reported increased operating revenues driven by renewable electric production projects. However, net income for common stock was impacted by non-controlling interests and mark-to-market adjustments.

Key challenges include managing the lingering effects of the COVID-19 pandemic on customer payments, supply chain disruptions affecting material costs and lead times, and regulatory requirements related to environmental standards. Con Edison Transmission also faced a significant impairment loss on an investment.

Con Edison has a strong liquidity position, supported by its credit agreement and operating cash flows. The company plans to fund its substantial capital expenditures through a combination of internally generated funds and the issuance of long-term debt and equity. They also have actively managed their debt portfolio through redemptions and new issuances.