|
Source: PRESS RELEASE, 8/2/12
Highlights: Second Quarter 2012 Reports second-quarter GAAP earnings of $0.21 per share, compared to $0.60 per share for the same period last year, primarily due to higher O&M expense resulting from an additional extended nuclear refueling outage in the Carolinas and higher depreciation and amortization expense Reports second-quarter ongoing earnings of $80 million, or $0.27 per share, compared to $211 million, or $0.71 per share, for the same period last year, primarily due to higher O&M expense, higher depreciation and amortization expense and the unfavorable impact of weather
Year-to-Date 2012 Reports GAAP earnings for the first six months of 2012 of $0.72 per share, compared to $1.22 per share for the same period last year, primarily due to higher O&M expense resulting from two additional extended nuclear refueling outages in the Carolinas, higher depreciation and amortization expense and the unfavorable impact of weather, partially offset by PEF’s lower estimated future joint owner replacement power costs in Florida Reports ongoing earnings for the first six months of 2012 of $223 million, or $0.75 per share, compared to $413 million, or $1.40 per share, for the same period last year, primarily due to higher O&M expense in the Carolinas, higher depreciation and amortization expense and the unfavorable impact of weather
Duke Energy Corporation [NYSE: DUK] and Progress Energy, Inc. completed their merger on July 2, 2012. In connection with the merger, Progress Energy has become a wholly owned direct subsidiary of Duke Energy. As a result, the Progress Energy financial results for the second quarter 2012 are on a stand-alone basis and are not included in Duke Energy’s results. The financial results of Progress Energy will be included in Duke Energy’s consolidated results beginning with third quarter 2012.
Progress Energy announced second-quarter GAAP earnings of $63 million, or $0.21 per share, compared with GAAP earnings of $176 million, or $0.60 per share, for the same period last year. Second-quarter ongoing earnings were $80 million, or $0.27 per share, compared to $211 million, or $0.71 per share, for the same period last year. The significant drivers in ongoing earnings per share were higher operation and maintenance (O&M) expense, primarily driven by an additional extended nuclear refueling outage in the Carolinas; higher depreciation and amortization expense; and the unfavorable impact of weather.
An earnings conference call for analysts is scheduled for 11 a.m. ET today to discuss Duke Energy’s financial performance for the second quarter 2012 and the recent finalization of the merger with Progress Energy, among other matters.
QUARTER-OVER-QUARTER ONGOING EPS VARIANCE ANALYSIS Progress Energy Carolinas Reported second-quarter ongoing earnings per share of $0.14, compared with $0.37 for the same period last year; GAAP earnings per share of $0.11, compared with $0.36 for the same period last year. Reported primary quarter-over-quarter ongoing earnings per share favorability of: $0.02 retail growth and usage $0.02 clauses and other margin primarily due to increased spending on new and existing demand-side management (DSM) programs $0.01 wholesale Reported primary quarter-over-quarter ongoing earnings per share unfavorability of: $(0.18) O&M primarily due to higher nuclear plant outage costs resulting from an additional extended nuclear refueling outage, higher substation and line maintenance costs related to a reliability initiative, and higher employee benefit expenses $(0.05) weather primarily due to 22 percent lower cooling-degree days $(0.02) depreciation and amortization primarily due to higher depreciable asset base driven by placing the combined-cycle unit at the Smith Energy Complex in service in June 2011 $(0.01) allowance for funds used during construction (AFUDC) equity $(0.01) interest expense $(0.01) other 12,000 net increase in the average number of customers for the three months ended June 30, 2012, compared to the same period in 2011
|