Summary
Edison International (EIX) reported a net loss of $288 million, or $0.76 per diluted share, for the third quarter of 2020, a significant decline compared to a net income of $471 million in the same period of the prior year. This downturn was primarily driven by substantial non-core losses, particularly from wildfire-related claims and expenses. Southern California Edison (SCE) also incurred a net loss of $218 million for the quarter, a reversal from a net income of $534 million in the prior year, largely due to the same wildfire-related charges. Despite the net loss, core earnings for Edison International were $632 million for the quarter, an increase from $519 million in Q3 2019, reflecting improved operational performance in the core business. SCE's core earnings also saw a modest increase to $656 million from $551 million in the prior year, driven by higher CPUC-related revenue and lower wildfire mitigation expenses due to regulatory deferrals, partially offset by increased operation and maintenance expenses. Investors should note the significant impact of wildfire liabilities, which continue to weigh on the company's reported net results, though legislative efforts like AB 1054 aim to mitigate future risks.
Financial Highlights
46 data points| Revenue | $4.64B |
| Operating Expenses | $5.02B |
| Operating Income | -$379.00M |
| Interest Expense | $222.00M |
| Net Income | -$242.00M |
| EPS (Basic) | $-0.76 |
| EPS (Diluted) | $-0.76 |
| Shares Outstanding (Basic) | 378.00M |
| Shares Outstanding (Diluted) | 378.00M |
Key Highlights
- 1Edison International reported a net loss of $288 million for Q3 2020, a significant decrease from a net income of $471 million in Q3 2019, primarily due to substantial wildfire-related charges.
- 2Southern California Edison (SCE) also experienced a net loss of $218 million for the quarter, reversing a net income of $534 million in the prior year, largely due to the same wildfire claims.
- 3Core earnings for Edison International increased to $632 million from $519 million year-over-year, indicating improved performance in core operations.
- 4SCE's core earnings rose to $656 million from $551 million, driven by higher CPUC-related revenue and lower wildfire mitigation deferral expenses.
- 5The company recorded a significant charge of $1.3 billion related to the 2017/2018 Wildfire/Mudslide Events, with a net charge to earnings of $1.2 billion after expected recoveries.
- 6Total estimated liabilities for the 2017/2018 Wildfire/Mudslide Events stood at $5.8 billion as of September 30, 2020, including fixed payments and estimated future losses.
- 7The company maintains a $1.0 billion wildfire-specific insurance coverage for the period July 1, 2020, to June 30, 2021.