Summary
Eversource Energy (ES), operating as Northeast Utilities, reported mixed financial results for the second quarter and first half of 2010. Net income attributable to controlling interests decreased to $71.9 million ($0.41 per share) for Q2 2010 and $158.2 million ($0.90 per share) for the first half of 2010, compared to the same periods in 2009. This decline was primarily due to the absence of benefits from favorable tax settlements in the prior year and the impact of the 2010 Healthcare Act. Despite these headwinds, the company saw improved results in its transmission segment due to infrastructure investments and positive developments in rate cases for its distribution segment subsidiaries (CL&P and PSNH), which are expected to support future earnings. The company raised its full-year 2010 earnings guidance to between $1.95 and $2.05 per share, reflecting improved rate case outcomes, warmer weather boosting sales, and better-than-expected uncollectible expense trends. Capital expenditures for 2010 are projected at approximately $1.1 billion, focusing on transmission infrastructure development and distribution system upgrades. Liquidity remains strong with significant borrowing availability, and credit rating outlooks from major agencies are stable.
Financial Highlights
26 data points| Revenue | $1.11B |
| Operating Expenses | $933.08M |
| Operating Income | $178.30M |
| Interest Expense | $67.20M |
| Net Income | $71.90M |
| EPS (Basic) | $0.41 |
| Shares Outstanding (Basic) | 176.57M |
| Shares Outstanding (Diluted) | 176.74M |
Key Highlights
- 1Net income decreased year-over-year for both Q2 2010 ($71.9M vs $82.9M) and the first half of 2010 ($158.2M vs $180.5M), impacted by the absence of prior year tax benefits and the 2010 Healthcare Act.
- 2The company revised its full-year 2010 EPS guidance upward to a range of $1.95-$2.05, reflecting positive rate case resolutions and improved sales outlook.
- 3Transmission segment earnings showed an increase due to higher investments in infrastructure, while distribution segment earnings were impacted by rate case outcomes and operational costs.
- 4Capital expenditures for the first half of 2010 were $442.4 million, with full-year projections remaining around $1.1 billion, primarily directed towards transmission and distribution improvements.
- 5Liquidity remains solid, with significant borrowing capacity available, and credit ratings from major agencies are stable.
- 6CL&P and PSNH achieved constructive resolutions in their respective distribution rate cases, leading to approved rate increases and supportive regulatory ROEs.
- 7Retail electric sales increased year-over-year due to warmer weather, while natural gas sales saw a slight decrease, influenced by milder temperatures.