Summary
Edison International (EIX) reported its financial results for the quarter and six months ended June 30, 2011. The company experienced a notable decrease in net income attributable to common shareholders, falling to $176 million ($0.54 per share) for the quarter and $376 million ($1.15 per share) for the six months, down from $344 million ($1.05 per share) and $580 million ($1.77 per share) in the prior year periods, respectively. This decline is largely attributed to a significant reduction in 'core earnings,' particularly within the Edison Mission Group (EMG) segment, which was impacted by lower energy prices, higher operating expenses, and plant outages. Southern California Edison (SCE) also saw a decrease in its core earnings, primarily due to higher income tax expense and increased operational costs, although rate base growth provided some offset. Key operational and financial factors influencing these results include the ongoing capital investment programs at SCE, significant environmental compliance initiatives and associated costs for EMG's generating facilities, and evolving regulatory landscapes. The company's liquidity remains a focus, with SCE maintaining access to substantial credit facilities and EMG managing its cash flow through a combination of operations, financing, and anticipated grants. Investors should monitor the company's ongoing management of environmental compliance costs, capital expenditures, and regulatory decisions, particularly concerning SCE's general rate case and FERC transmission rates.
Financial Highlights
43 data points| Revenue | $2.45B |
| Operating Expenses | $2.60B |
| Operating Income | $434.00M |
| Interest Expense | $203.00M |
| Net Income | $191.00M |
| EPS (Basic) | $0.54 |
| EPS (Diluted) | $0.54 |
| Shares Outstanding (Basic) | 326.00M |
| Shares Outstanding (Diluted) | 329.00M |
Key Highlights
- 1Net income attributable to common shareholders decreased significantly year-over-year for both the quarter ($176M vs $344M) and six months ($376M vs $580M) ended June 30, 2011.
- 2Core earnings saw a decline, with SCE's core earnings down $37M for the quarter and $18M year-to-date, and EMG's core earnings down $86M year-to-date due to operational and market challenges.
- 3SCE invested $1.6 billion in capital expenditures during the first six months of 2011, focusing on transmission, distribution, and smart meter upgrades, with a projected total investment of $3.9B-$4.4B for the full year.
- 4EMG faces significant environmental compliance costs, particularly for its coal-fired plants (Midwest Generation and Homer City), with ongoing efforts and capital commitments related to new regulations like CSAPR.
- 5Homer City experienced significant operational disruptions due to plant outages (Units 1 & 2) in the first half of 2011, impacting its financial performance and liquidity.
- 6The company highlighted ongoing regulatory proceedings, including SCE's 2012 General Rate Case and FERC's new transmission rules, which could impact future revenue requirements and capital recovery.
- 7Edison International's consolidated liquidity remained adequate, supported by SCE's $2.6 billion available under credit facilities and EMG's $1.8 billion in total available liquidity (cash and credit facilities).