Summary
Edison International reported a net income of $463 million for the three months ended September 30, 2013, a significant increase from $215 million in the same period last year. This improvement was largely driven by Southern California Edison's (SCE) utility earning activities, which benefited from a retroactive revenue adjustment related to the 2012 General Rate Case (GRC) decision. For the nine months ended September 30, 2013, net income attributable to Edison International common shareholders was $614 million, compared to $357 million for the same period in 2012. A major event impacting the company was the permanent retirement decision for the San Onofre nuclear generating units. This decision resulted in a significant impairment charge of $575 million ($365 million after tax) in the second quarter of 2013. Despite this, the company is navigating the regulatory and financial implications of the retirement, including establishing a substantial regulatory asset to cover potential future cost recovery. The company continues to focus on capital investments in its transmission and distribution system, with a significant forecast for the next five years. Liquidity remains supported by robust credit facilities, though the company is managing an under-collection in its Energy Resource Recovery Account (ERRA) balancing account for fuel and purchased power costs, which could impact future cash flows if not resolved through rate adjustments.
Financial Highlights
43 data points| Revenue | $3.96B |
| Operating Expenses | $3.17B |
| Operating Income | $789.00M |
| Interest Expense | $137.00M |
| Net Income | $463.00M |
| EPS (Basic) | $1.34 |
| EPS (Diluted) | $1.34 |
| Shares Outstanding (Basic) | 326.00M |
| Shares Outstanding (Diluted) | 328.00M |
Key Highlights
- 1Edison International reported a net income of $463 million for Q3 2013, a substantial increase from $215 million in Q3 2012, primarily driven by retroactive rate recovery from the 2012 GRC.
- 2The company decided to permanently retire the San Onofre nuclear generating units, leading to a $575 million impairment charge and the establishment of a significant regulatory asset ($1.45 billion as of September 30, 2013).
- 3For the nine months ended September 30, 2013, net income attributable to common shareholders was $614 million, up from $357 million in the prior year.
- 4SCE's capital expenditure forecast for 2013-2017 is substantial, ranging from $18.2 billion to $20.6 billion, focusing on transmission, distribution, and generation infrastructure.
- 5The company is facing an under-collection in its ERRA balancing account for fuel and purchased power costs, amounting to $719 million as of September 30, 2013, which could impact liquidity if not addressed by rate increases.
- 6Edison International is actively managing its market risks, particularly commodity price risk and credit risk, through the use of derivative instruments and master netting agreements.