Summary
Eversource Energy (ES) reported its first quarter 2016 financial results, showing a slight decrease in net income attributable to common shareholders to $244.2 million ($0.77 per share) from $253.3 million ($0.80 per share) in the prior year period. This decline was primarily driven by lower electric distribution segment earnings, influenced by warmer weather, reduced sales volumes, and the absence of certain one-time positive items from the prior year. Despite these headwinds, the electric transmission segment saw an increase in earnings due to higher rate base and the resolution of regulatory matters. The company's operating revenues declined by 18.2% to $2.06 billion, largely due to lower energy supply costs and reduced sales volumes across its electric and natural gas distribution segments, which are largely recovered through regulatory mechanisms and thus have a neutral impact on earnings. Operating cash flows remained robust, increasing to $500 million from $491.5 million year-over-year, supporting significant investments in property, plant, and equipment totaling $431.5 million. The company also maintained a strong liquidity position, with cash and cash equivalents increasing to $51 million. Eversource successfully issued $500 million in senior notes in March 2016 to repay short-term borrowings.
Financial Highlights
45 data points| Revenue | $2.06B |
| Operating Expenses | $1.57B |
| Operating Income | $488.50M |
| Interest Expense | $98.21M |
| Net Income | $246.00M |
| EPS (Basic) | $0.77 |
| EPS (Diluted) | $0.77 |
| Shares Outstanding (Basic) | 317.52M |
| Shares Outstanding (Diluted) | 318.48M |
Key Highlights
- 1Net income attributable to common shareholders decreased by 3.6% to $244.2 million ($0.77 per share) in Q1 2016, compared to $253.3 million ($0.80 per share) in Q1 2015.
- 2Operating revenues decreased by 18.2% to $2.06 billion due to lower energy supply costs and reduced sales volumes.
- 3Electric distribution segment earnings declined by $22.2 million, primarily due to warmer weather impacting sales volumes and the absence of prior-year favorable regulatory adjustments.
- 4Electric transmission segment earnings increased by $19.1 million, driven by higher rate base and the absence of prior-year reserve charges related to FERC ROE complaints.
- 5Operating cash flows increased to $500 million from $491.5 million, supporting capital expenditures of $431.5 million.
- 6Eversource issued $500 million in senior notes in March 2016 to repay commercial paper borrowings, strengthening its liquidity position.
- 7The company remains engaged with ongoing FERC ROE complaints, with initial decisions from an ALJ recommending lower ROEs, the final outcome of which is uncertain but does not currently warrant changes to recorded reserves.