Summary
Entergy Corporation's subsidiaries reported mixed financial results for the third quarter and nine months ended September 30, 2018. Overall, net income saw increases across most subsidiaries, largely driven by a lower effective income tax rate following the Tax Cuts and Jobs Act and higher net revenues. This was partially offset by increases in operation and maintenance expenses, and in some cases, depreciation and amortization expenses. Key operational highlights include increased billed electricity usage across residential, commercial, and industrial sectors for most subsidiaries, often attributed to more favorable weather conditions and new industrial customers. However, several subsidiaries reported decreases in operating revenues due to factors like the return of excess accumulated deferred income taxes to customers and changes in retail electric prices due to regulatory adjustments. Capital expenditures remain significant, with substantial investment planned for transmission, distribution, and generation projects in the coming years. The company also continues to navigate various regulatory proceedings and updates, including those related to the Tax Cuts and Jobs Act, environmental regulations, and rate plan filings.
Financial Highlights
43 data points| Revenue | $3.10B |
| Operating Expenses | $2.83B |
| Operating Income | $271.04M |
| Interest Expense | $195.31M |
| Net Income | $539.82M |
| EPS (Basic) | $1.48 |
| EPS (Diluted) | $1.46 |
| Shares Outstanding (Basic) | 362.00M |
| Shares Outstanding (Diluted) | 367.33M |
Key Highlights
- 1Net income generally increased across Entergy's subsidiaries for the nine months ended September 30, 2018, compared to the prior year, primarily driven by lower effective income tax rates and improved net revenues.
- 2Billed electricity usage showed an increase across residential, commercial, and industrial customer classes for most subsidiaries, aided by favorable weather and new industrial demand.
- 3Several subsidiaries, including Entergy Arkansas and Entergy Louisiana, experienced a reduction in net revenue due to the return of unprotected excess accumulated deferred income taxes to customers, though this was offset by a reduction in income tax expense, resulting in no net income impact.
- 4Entergy Texas reported a significant increase in operating revenues, attributed to higher billed electricity usage and adjustments in purchased power costs and retail electric prices.
- 5Capital investments remain a focus, with Entergy Arkansas planning $2.3 billion, Entergy Louisiana $4.1 billion, Entergy Mississippi $1.7 billion, and Entergy Texas $1.9 billion in capital expenditures for 2019-2021.
- 6Entergy Mississippi announced the acquisition of the Choctaw Generating Station for approximately $314 million, with expected total costs of $401 million after upgrades, pending regulatory approvals.
- 7System Energy Resources, Inc. (SERI) is facing regulatory challenges regarding its return on equity, with the APSC, MPSC, and LPSC filing complaints seeking reductions and potential refunds.