Summary
Exelon Corporation reported solid financial results for the third quarter and the first nine months of 2009, demonstrating year-over-year growth in net income and diluted earnings per share. This performance was primarily driven by favorable movements in nuclear decommissioning trust fund investments, increased regulated distribution revenues from rate case orders at ComEd and PECO, and lower allowance for uncollectible accounts expense at PECO. Despite these positives, the company faced headwinds including lower energy gross margins at its Generation segment due to unfavorable market conditions and reduced nuclear output, as well as decreased load at its utility operations (ComEd and PECO) impacted by adverse weather and the ongoing economic downturn. Looking ahead, Exelon is pursuing several growth initiatives, including planned nuclear plant power uprates, smart grid investments, and the establishment of a new transmission venture. The company also highlighted its focus on liquidity and cost management, evidenced by successful debt refinancing and a company-wide cost savings initiative aimed at realizing approximately $350 million in operations and maintenance savings for 2010. Regulatory matters, environmental legislation, and competitive market dynamics remain key areas of focus and potential impact for Exelon's future operations.
Financial Highlights
28 data points| Revenue | $4.34B |
| Operating Expenses | $2.94B |
| Operating Income | $1.40B |
| Interest Expense | $170.00M |
| Net Income | $757.00M |
| EPS (Basic) | $1.15 |
| EPS (Diluted) | $1.14 |
| Shares Outstanding (Basic) | 660.00M |
| Shares Outstanding (Diluted) | 662.00M |
Key Highlights
- 1Net income increased to $757 million ($1.14 EPS) for Q3 2009 from $700 million ($1.06 EPS) in Q3 2008. Year-to-date net income rose to $2,126 million ($3.21 EPS) from $2,030 million ($3.06 EPS) in the prior year.
- 2Key drivers for improved net income included unrealized gains on nuclear decommissioning trust fund investments and increased regulated distribution revenues at ComEd and PECO.
- 3Headwinds included lower energy gross margins at Generation due to market conditions and decreased load at ComEd and PECO impacted by economic and weather factors.
- 4Exelon is investing in future growth through nuclear power uprates (1,300-1,500 MW capacity increase), smart grid initiatives with potential DOE funding, and a new transmission venture (Exelon Transmission Company).
- 5The company is actively managing costs, with a company-wide initiative targeting $350 million in O&M savings for 2010, with half expected to be sustainable.
- 6Exelon successfully refinanced $1.2 billion of debt maturing in 2011, reducing refinancing risk and lowering average debt costs.
- 7The company made a $350 million discretionary contribution to its largest pension plan to improve its funded status.