Summary
FirstEnergy Corp. (FE) reported revenues of $2.52 billion for the second quarter of 2019, a slight decrease from $2.63 billion in the prior year's second quarter. Net income attributable to common stockholders was $308 million, or $0.58 per diluted share, compared to $134 million, or $0.28 per diluted share, in the same period of 2018. This improvement was largely driven by the absence of significant charges related to discontinued operations that impacted the prior year's results, and also benefited from a decrease in interest expense and a lower effective income tax rate. The company continues its strategic shift towards becoming a fully regulated utility, focusing on its Regulated Distribution and Regulated Transmission segments. These segments are expected to provide stable and predictable earnings and cash flows. Significant capital investments are planned for both segments, particularly in transmission infrastructure as part of the 'Energizing the Future' initiative, which aims to enhance reliability and modernize the grid. While the company's financial performance improved year-over-year for the quarter, it continues to navigate regulatory matters across its various operating states and manage the ongoing implications of past divestitures and financial restructuring.
Financial Highlights
46 data points| Revenue | $2.52B |
| Operating Expenses | $1.93B |
| Operating Income | $585.00M |
| Interest Expense | $259.00M |
| Net Income | $312.00M |
| EPS (Basic) | $0.58 |
| EPS (Diluted) | $0.58 |
| Shares Outstanding (Basic) | 532.00M |
| Shares Outstanding (Diluted) | 533.00M |
Key Highlights
- 1Total revenues for Q2 2019 were $2.52 billion, down 4.2% from $2.63 billion in Q2 2018.
- 2Net income attributable to common stockholders increased to $308 million ($0.58/share) in Q2 2019 from $134 million ($0.28/share) in Q2 2018.
- 3Income from continuing operations saw a significant increase, rising to $341 million in Q2 2019 from $308 million in Q2 2018.
- 4Operating income decreased by 16% to $585 million in Q2 2019 from $700 million in Q2 2018, primarily due to increased operating expenses in Regulated Distribution.
- 5The company made progress on its strategic transition to a fully regulated utility, with continued investment in Regulated Distribution and Transmission segments.
- 6Short-term borrowings remained stable at $1.25 billion, while long-term debt increased to $19.05 billion from $17.75 billion.
- 7Cash provided by operating activities for the first six months of 2019 was $625 million, a significant improvement from the $288 million used in the same period of 2018, largely due to a $500 million decrease in pension plan contributions.