Summary
Edison International (EIX) reported consolidated net income attributable to common shareholders of $1,020 million for the fiscal year ended December 31, 2015, a decrease from $1,612 million in 2014. This decline was primarily driven by a significant write-down of regulatory assets related to tax repair deductions and lower CPUC-related revenue for its primary subsidiary, Southern California Edison (SCE). SCE's core earnings were impacted by a $382 million write-down of regulatory assets, alongside a $157 million decrease in core earnings due to lower CPUC-authorized revenue reflecting the implementation of the 2015 General Rate Case (GRC) decision. Despite the earnings dip, the company maintained a strong capital expenditure program, with SCE forecasting $8.0-$8.3 billion for 2016-2017 to support infrastructure upgrades and new technologies. Edison International also demonstrated a commitment to shareholder returns by increasing its annual dividend by 15% to $1.92 per share. The company is navigating a changing electricity industry landscape, characterized by technological advancements like distributed energy resources and evolving public policy, while managing significant regulatory and operational risks, including ongoing proceedings related to the San Onofre nuclear facility.
Financial Highlights
44 data points| Revenue | $11.52B |
| Operating Expenses | $9.52B |
| Operating Income | $2.01B |
| Interest Expense | $555.00M |
| Net Income | $1.12B |
| EPS (Basic) | $3.13 |
| EPS (Diluted) | $3.10 |
| Shares Outstanding (Basic) | 326.00M |
| Shares Outstanding (Diluted) | 329.00M |
Key Highlights
- 1Consolidated net income attributable to common shareholders decreased to $1,020 million in 2015 from $1,612 million in 2014, primarily due to a $382 million write-down of regulatory assets and lower CPUC-related revenue.
- 2Southern California Edison (SCE) plans to invest $8.0-$8.3 billion in capital expenditures for 2016-2017 to upgrade infrastructure and adapt to industry changes.
- 3Edison International increased its annual common stock dividend by 15% to $1.92 per share, signaling confidence in future earnings.
- 4The company is managing the ongoing impact of the San Onofre nuclear facility's permanent retirement, including regulatory proceedings and potential third-party claims.
- 5SCE received a $16.74 million penalty from the CPUC related to ex parte communications, impacting its operations and regulatory relationship.
- 6The company is adapting to industry trends like increased customer-owned generation and the push for renewable energy, as mandated by California's Senate Bill 350.
- 7Edison International Parent and Other's competitive businesses remain immaterial to overall consolidated results, but the company is investing in these areas for future growth.