PSEG net income falls as adjusted operating earnings rise
PSEG reported lower third-quarter net income alongside a small increase in adjusted operating earnings. The US energy group retained its annual earnings guidance. Its regulated utility earned less as depreciation and interest expenses increased, while the power business benefited from higher realized prices, more nuclear generation and lower maintenance expenses. Adjusted earnings per share fell short of expectations.
Economics & Markets··Morning
Reported and adjusted earnings move apart
Public Service Enterprise Group, or PSEG, the US utility and nuclear power group, reported third-quarter net income of 376 million dollars, down from 622 million dollars a year earlier. Earnings per share fell to 0.76 dollars from 1.24 dollars. Adjusted operating earnings increased to 574 million dollars from 565 million dollars, or to 1.15 dollars per share from 1.13 dollars.[1]
The adjusted per-share result fell short of the 1.21 dollars expected in the Zacks consensus. The company retained its full-year adjusted operating earnings guidance of between 4.28 dollars and 4.40 dollars per share.[1], [2]
Utility investment gains meet higher expenses
Regulated utility PSE&G earned 506 million dollars, down from 515 million dollars a year earlier. According to the company, electricity and gas customer numbers increased gradually. Energy efficiency and transmission investment supported results. Higher depreciation and interest expenses associated with investments not yet reflected in current rates, together with tax timing, more than offset those gains.[1]
Nuclear generation lifts adjusted power earnings
PSEG Power and Other reported a net loss of 130 million dollars, against net income of 107 million dollars a year earlier. Its adjusted operating earnings rose to 68 million dollars from 50 million dollars. Management cited higher realized prices, increased nuclear generation and lower maintenance expenses because the previous year’s Hope Creek refueling outage did not recur. Mark-to-market losses and nuclear decommissioning trust effects were excluded from adjusted operating earnings. Nuclear output totaled 8.2 terawatt-hours, with a capacity factor of 95.5 per cent.[1]
