10-QPeriod: Q1 FY2023

CONSOLIDATED EDISON INC Quarterly Report for Q1 Ended Mar 31, 2023

Filed May 4, 2023For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) reported strong financial performance for the first quarter of 2023, driven by its regulated utility operations. Net income for common stock significantly increased to $1.433 billion, up from $602 million in the prior year period. This robust growth was primarily fueled by a substantial gain from the sale of the Clean Energy Businesses, which contributed $791 million after tax. The core utility segments, CECONY and O&R, also demonstrated positive momentum, with CECONY's net income rising to $604 million. While the sale of the Clean Energy Businesses marks a strategic shift, the company continues to focus on regulated utility growth and dividend increases, underpinned by investments in reliability, resilience, and clean energy infrastructure. The company also initiated a significant share repurchase program, signaling confidence in its financial health and commitment to shareholder value.

Financial Highlights

42 data points
Beta

Revenue

$4.22B

Net Income

$1.43B

33.9% Net Margin

EPS (Diluted)

$4.05

Total Assets

$62.80B

Cash & Equivalents

$774.00M

Free Cash Flow

$92.00M

Financial Statements
Beta
Revenue$4.22B
Operating Expenses$3.52B
Operating Income$1.74B
Interest Expense$262.00M
Net Income$1.43B
EPS (Basic)$4.06
EPS (Diluted)$4.05
Shares Outstanding (Basic)352.90M
Shares Outstanding (Diluted)354.20M

Key Highlights

  • 1Net income for common stock surged to $1.433 billion for Q1 2023, a substantial increase from $602 million in Q1 2022, largely due to the gain on the sale of Clean Energy Businesses.
  • 2CECONY, the main utility subsidiary, reported a net income of $604 million for Q1 2023, up from $475 million in the prior year.
  • 3Con Edison completed the sale of substantially all of its Clean Energy Businesses assets on March 1, 2023, recognizing a significant gain.
  • 4The company initiated accelerated share repurchase agreements (ASR) totaling $1 billion in March 2023, demonstrating a commitment to returning capital to shareholders.
  • 5Operating revenues for the total company increased to $4.403 billion in Q1 2023 from $4.060 billion in Q1 2022.
  • 6The company is actively pursuing clean energy initiatives, including applications for federal grants under the Infrastructure Investment and Jobs Act for projects like a clean hydrogen hub and a Brooklyn Clean Energy Hub.
  • 7Despite inflationary pressures and higher interest rates impacting capital costs, the company maintains a strong liquidity position with significant revolving credit facilities.

Frequently Asked Questions

The primary driver for the substantial increase in net income for the first quarter of 2023 was the gain recognized from the sale of substantially all of the assets of the Clean Energy Businesses, which contributed $791 million after tax.

Con Edison completed the sale of its Clean Energy Businesses on March 1, 2023, and is now focused on its regulated utility operations. The company aims to provide shareholder value through continued dividend growth, supported by earnings growth in regulated utilities and contracted electric and gas assets, while investing in reliability, resilience, and clean energy for its customers.

CECONY filed a request for a $141 million steam rate increase, with a decision pending from the NYSPSC. The NYSDPS has recommended a $94 million increase. The outcome of this rate request will impact CECONY's future financial condition and results of operations.

Con Edison is closely monitoring financial markets and has access to significant liquidity through a $2.5 billion revolving credit agreement and a $500 million 364-day revolving credit agreement for CECONY. While inflation and higher interest rates have increased capital costs, the company's regulated rate plans and revenue decoupling mechanisms help to mitigate some of these impacts. They also continue to manage their commercial paper issuances.