Summary
Entergy Corporation's third-quarter 2008 results show a decline in net income across its operating subsidiaries compared to the prior year. This decrease is primarily attributed to lower net revenues, increased operation and maintenance expenses, and higher taxes, with notable impacts from hurricanes Gustav and Ike causing significant storm restoration costs across multiple service territories. Entergy Arkansas experienced a reduction in net income due to lower net revenue and increased expenses, partially offset by favorable energy cost recovery riders. Entergy Gulf States Louisiana and Entergy Texas reported lower net income, largely influenced by the prior year's earnings which included operations now separated into Entergy Texas, as well as the impact of hurricanes. Entergy Louisiana and Entergy Mississippi also saw decreases in net income, impacted by lower net revenues and higher expenses, with Entergy Louisiana particularly affected by storm costs. Entergy New Orleans, however, reported an increase in net income due to lower operation and maintenance expenses. The company's liquidity and capital resources are being managed to address storm-related expenditures. Entergy is actively pursuing recovery of storm costs through regulatory mechanisms, insurance, and securitization. The company also issued $300 million in First Mortgage Bonds in July 2008 to fund various corporate purposes, including the Ouachita plant acquisition. Capital expenditures remain significant, particularly for storm damage restoration and ongoing infrastructure improvements. The company is also managing various regulatory proceedings and environmental compliance efforts, including updates on the Little Gypsy repowering project and the ongoing assessment of environmental regulations.
Financial Highlights
25 data points| Operating Expenses | $3.21B |
| Operating Income | $752.09M |
| Interest Expense | $156.04M |
| Net Income | $475.29M |
| EPS (Basic) | $1.24 |
| EPS (Diluted) | $1.21 |
| Shares Outstanding (Basic) | 380.76M |
| Shares Outstanding (Diluted) | 389.92M |
Key Highlights
- 1Net income for most Entergy subsidiaries declined year-over-year due to lower revenues and higher expenses, exacerbated by significant storm restoration costs from Hurricanes Gustav and Ike.
- 2Entergy Arkansas reported lower net income, primarily due to decreased net revenue and increased expenses, though partially offset by favorable energy cost recovery riders.
- 3Entergy Gulf States Louisiana and Entergy Texas' comparative results are impacted by the prior year including Entergy Texas' operations before its separation.
- 4Entergy Louisiana and Entergy Mississippi also experienced reduced net income driven by lower revenues and higher operational costs.
- 5Entergy New Orleans showed an increase in net income, mainly due to lower operation and maintenance expenses.
- 6Significant storm restoration costs are being incurred due to Hurricanes Gustav and Ike, with Entergy actively pursuing recovery through regulatory mechanisms, insurance, and securitization.
- 7The company issued $300 million in First Mortgage Bonds in July 2008, partly to fund the Ouachita plant acquisition.