Summary
Edison International (EIX) reported its fiscal year results on February 21, 2017. The company's primary subsidiary, Southern California Edison (SCE), a major utility, experienced a significant increase in net income attributable to common shareholders, largely driven by an $378 million increase in SCE's earnings. This improvement was partially offset by increased costs at Edison International Parent and Other and lower income from discontinued operations. The company is investing heavily in its capital program, forecasting $19.3 billion in capital expenditures for 2017-2020, primarily focused on modernizing the electric grid and supporting the integration of distributed energy resources (DERs). This includes significant investments in distribution and transmission infrastructure, as well as grid modernization initiatives. Edison International also announced a 13% increase in its annual dividend rate, reflecting confidence in its financial outlook and a commitment to returning value to shareholders.
Financial Highlights
46 data points| Revenue | $11.87B |
| Operating Expenses | $9.81B |
| Operating Income | $2.06B |
| Interest Expense | $581.00M |
| Net Income | $1.43B |
| EPS (Basic) | $4.02 |
| EPS (Diluted) | $3.97 |
| Shares Outstanding (Basic) | 326.00M |
| Shares Outstanding (Diluted) | 330.00M |
Key Highlights
- 1Edison International's net income attributable to common shareholders increased to $1.31 billion in 2016, up from $1.02 billion in 2015.
- 2Southern California Edison (SCE) saw its net income increase by $378 million, primarily due to higher authorized revenue from the 2015 GRC decision and lower O&M expenses, partially offset by increased financing costs and taxes.
- 3The company plans substantial capital investments of $19.3 billion from 2017-2020, focused on grid modernization and supporting distributed energy resources (DERs).
- 4Edison International declared a 13% increase in its annual dividend, raising it to $2.17 per share, with plans for higher-than-industry-average growth.
- 5San Onofre Nuclear Generating Station decommissioning costs continue to be managed, with $857 million remaining to be collected under the OII Settlement Agreement as of December 31, 2016.
- 6Edison Energy Group, the competitive business arm, is still not material to the consolidated results, with losses from continuing operations increasing due to operating and development costs.
- 7SCE's debt-to-capitalization ratio was 0.43:1 at year-end 2016, well within its debt covenant limits.