Summary
Exelon Corporation reported a decrease in net income attributable to common shareholders for the third quarter of 2018 to $733 million ($0.76 per diluted share) from $823 million ($0.85 per diluted share) in the same period of 2017. This decline was primarily driven by lower operating revenues net of purchased power and fuel expenses, notably at the Generation segment due to the absence of prior-year revenues from deconsolidated entities and lower realized energy prices, as well as by increased operating and maintenance expenses across various segments, including charges related to the Oyster Creek Asset Retirement Obligation and higher nuclear refueling outage costs. For the nine months ended September 30, 2018, net income attributable to common shareholders was $1.86 billion ($1.92 per diluted share), a slight decrease from $1.91 billion ($2.02 per diluted share) in the prior year. While the utility segments experienced some benefits from rate increases and favorable weather, these were largely offset by the impact of the Tax Cuts and Jobs Act (TCJA), which required pass-through of tax savings to customers, reducing revenue. The company continues to manage its cost structure and execute its integrated business model, balancing regulated utility earnings growth with competitive business free cash flow generation.
Financial Highlights
53 data points| Revenue | $9.40B |
| Operating Expenses | $8.25B |
| Operating Income | $1.14B |
| Interest Expense | $387.00M |
| Net Income | $731.00M |
| EPS (Basic) | $0.76 |
| EPS (Diluted) | $0.75 |
| Shares Outstanding (Basic) | 968.00M |
| Shares Outstanding (Diluted) | 970.00M |
Key Highlights
- 1Exelon's net income attributable to common shareholders decreased to $733 million for Q3 2018 from $823 million in Q3 2017.
- 2Diluted earnings per share (EPS) declined to $0.76 in Q3 2018 from $0.85 in Q3 2017.
- 3Revenue net of purchased power and fuel expenses decreased by $155 million year-over-year for Q3 2018, primarily due to lower realized energy prices and the absence of prior-year revenues from deconsolidated entities.
- 4Operating and maintenance expenses increased by $71 million in Q3 2018, largely due to charges related to Oyster Creek ARO and higher nuclear refueling outage costs at the Generation segment.
- 5Depreciation and amortization expense increased by $103 million in Q3 2018, driven by ongoing capital expenditures and accelerated depreciation related to planned early plant retirements.
- 6The company recognized a $41 million impairment charge for long-lived merchant wind assets in West Texas during Q2 2018.
- 7Exelon continues to focus on cost management, announcing further cost savings initiatives primarily at Generation and BSC.