Summary
Eversource Energy (formerly Northeast Utilities) reported a decrease in net income for the third quarter of 2011 to $90 million ($0.51 per share) from $100.5 million ($0.57 per share) in the same period of 2010. This decline was primarily attributed to net losses on equity securities in its supplemental benefit trust and a charge related to a wholesale billing adjustment at WMECO. For the first nine months of 2011, net income increased to $281.4 million ($1.58 per share) from $258.7 million ($1.46 per share) in the prior year, driven by rate case decisions and colder weather. The company reaffirmed its full-year 2011 earnings guidance of $2.30 to $2.40 per share, excluding merger-related costs. Operating revenues saw a decline primarily due to lower energy and supply costs and customer migration to third-party electric suppliers, though this was partially offset by rate increases and higher investment in transmission infrastructure. The company is actively managing its capital expenditures, projecting approximately $5.7 billion for 2012-2016, which is expected to grow its rate base. Liquidity remains stable, with cash and cash equivalents at $16.7 million as of September 30, 2011. The company also provided an update on its pending merger with NSTAR, with the termination date extended to April 16, 2012, and noted that regulatory approvals are still being sought from relevant authorities. Significant weather events, Tropical Storm Irene and a subsequent snowstorm, caused damage but are not expected to have a material impact on financial results due to expected regulatory recovery of restoration costs.
Financial Highlights
46 data points| Revenue | $1.11B |
| Operating Expenses | $911.08M |
| Operating Income | $203.80M |
| Interest Expense | $63.93M |
| Net Income | $91.40M |
| EPS (Basic) | $0.51 |
| EPS (Diluted) | $0.51 |
| Shares Outstanding (Basic) | 177.50M |
| Shares Outstanding (Diluted) | 177.84M |
Key Highlights
- 1Net income decreased to $90 million ($0.51/share) in Q3 2011 from $100.5 million ($0.57/share) in Q3 2010, mainly due to losses on equity securities and a WMECO charge.
- 2Nine-month net income increased to $281.4 million ($1.58/share) in 2011 from $258.7 million ($1.46/share) in 2010, driven by rate case decisions and weather.
- 3Full-year 2011 earnings guidance remains $2.30-$2.40 per share (excluding merger costs).
- 4Operating revenues decreased by 10.3% in Q3 2011, largely due to lower energy supply costs and customer migration to third-party suppliers.
- 5Capital expenditures for 2012-2016 are projected at approximately $5.7 billion, expecting to grow the rate base.
- 6The pending merger with NSTAR has had its termination date extended to April 16, 2012, with regulatory approvals still pending in Massachusetts and Connecticut.
- 7Significant storm costs from Tropical Storm Irene and a subsequent snowstorm are expected to be recovered through regulatory processes and are not anticipated to materially impact financial results.