Summary
FirstEnergy Corp. reported lower earnings available to shareholders for the second quarter and first six months of 2010 compared to the same periods in 2009. This decline was primarily driven by the absence of a significant gain from an asset sale in the prior year and increased operating expenses, particularly higher purchased power costs and interest expense. Despite lower overall revenues due to increased customer shopping in the Ohio utilities and a decrease in generation sales volumes, the company saw some positive trends in distribution deliveries, reflecting recovering economic conditions. Financially, FirstEnergy maintained a stable liquidity position, with sufficient access to credit facilities to meet its obligations. The company is actively managing its balance sheet and exploring financing options in the capital markets. A significant ongoing development is the proposed merger with Allegheny Energy, Inc., which is progressing through regulatory approvals with an anticipated closing in the first half of 2011. This merger is expected to create a larger, more diversified energy company. The company continues to monitor and manage environmental compliance costs and potential regulatory changes, which could impact future operations and expenditures.
Financial Highlights
46 data points| Operating Expenses | $2.61B |
| Operating Income | $526.00M |
| Net Income | $265.00M |
| EPS (Basic) | $0.87 |
| EPS (Diluted) | $0.87 |
| Shares Outstanding (Basic) | 304.00M |
| Shares Outstanding (Diluted) | 305.00M |
Key Highlights
- 1Earnings per share declined year-over-year for both the second quarter and the first six months of 2010.
- 2The company reported lower total revenues, largely influenced by increased customer shopping in Ohio utilities and reduced generation sales volumes.
- 3FirstEnergy maintained sufficient liquidity through its credit facilities to meet anticipated obligations.
- 4The proposed merger with Allegheny Energy, Inc. is progressing through regulatory approvals, with an anticipated closing in the first half of 2011.
- 5Operating expenses, particularly purchased power and interest expenses, increased compared to the prior year.
- 6Distribution deliveries showed improvement due to recovering economic conditions and increased weather-related usage.
- 7The company is actively managing its regulatory assets and is subject to ongoing environmental compliance and regulatory proceedings.