Summary
Eversource Energy's (ES) Q2 2016 report indicates a slight decrease in net income attributable to common shareholders compared to the previous year, with earnings of $203.6 million ($0.64/share) for the quarter and $447.8 million ($1.41/share) for the first half, versus $207.5 million ($0.65/share) and $460.8 million ($1.45/share) respectively in 2015. The electric transmission segment saw earnings growth, driven by infrastructure investments and a higher rate base, while the electric distribution segment experienced a decline due to higher operating and maintenance expenses, and depreciation. The natural gas distribution segment showed modest earnings growth in the quarter but a year-over-year decline in the first half, primarily due to warmer weather impacting sales volumes. Cash flows from operating activities improved significantly in the first half of 2016, reaching $978.4 million compared to $865.3 million in the prior year, supporting increased capital expenditures of $869.2 million. The company also saw positive developments in its credit ratings from Moody's, S&P, and Fitch, with outlooks shifting to positive or stable. Key regulatory and legislative developments include ongoing FERC ROE complaint proceedings with potential impacts on future earnings, and a significant bill passed in Massachusetts requiring solicitation for offshore wind and hydropower contracts.
Financial Highlights
45 data points| Revenue | $1.77B |
| Operating Expenses | $1.34B |
| Operating Income | $423.40M |
| Interest Expense | $100.49M |
| Net Income | $205.50M |
| EPS (Basic) | $0.64 |
| EPS (Diluted) | $0.64 |
| Shares Outstanding (Basic) | 317.79M |
| Shares Outstanding (Diluted) | 318.48M |
Key Highlights
- 1Net income attributable to common shareholders for Q2 2016 was $203.6 million ($0.64/share), a slight decrease from $207.5 million ($0.65/share) in Q2 2015.
- 2First half 2016 net income attributable to common shareholders was $447.8 million ($1.41/share), down from $460.8 million ($1.45/share) in the first half of 2015.
- 3Electric transmission segment earnings increased due to higher investments and rate base, while electric distribution segment earnings decreased due to higher operating expenses and depreciation.
- 4Cash flow from operating activities increased to $978.4 million in the first half of 2016 from $865.3 million in the same period of 2015.
- 5Capital expenditures rose to $869.2 million in the first half of 2016, up from $740.4 million in the first half of 2015.
- 6Credit ratings and outlooks from Moody's, S&P, and Fitch were generally upgraded or maintained with stable/positive outlooks.
- 7The company is involved in ongoing FERC ROE complaint proceedings that could impact future earnings.