News Column

Ameren NYSE: AEE Announces Second Quarter 2014 Results and Affirms 2014 Earnings Guidance

August 22, 2014



By a News Reporter-Staff News Editor at Energy Weekly News -- Ameren Corporation (NYSE: AEE) announced second quarter 2014 net income from continuing operations of $150 million, or 62 cents per share, compared to second quarter 2013 net income from continuing operations of $105 million, or 44 cents per share.

The year-over-year increase in second quarter 2014 earnings from continuing operations reflected the absence of 2013 Callaway Energy Center nuclear refueling outage expenses and a 2013 charge related to Missouri fuel adjustment clause (FAC) treatment of certain prior period wholesale sales. In 2014 the Callaway refueling outage is scheduled for the fourth quarter, whereas in 2013 the refueling outage occurred in the second quarter. The earnings comparison also benefited from warmer early summer temperatures in 2014, which drove higher Missouri native load electric sales volumes. Other factors included increased rates effective Jan. 1, 2014, for Federal Energy Regulatory Commission (FERC) regulated electric transmission and Illinois natural gas delivery services, as well as decreased interest expense.

"Continued execution of our strategy is producing solid financial and operating performance for the benefit of our customers and shareholders," said Warner L. Baxter, chairman, president and chief executive officer of Ameren Corporation. "Over the remainder of this year, we will remain focused on successfully completing several key infrastructure projects, as well as managing our costs in a disciplined fashion."

Ameren recorded net income from continuing operations for the six months ended June 30, 2014, of $247 million, or $1.02 per share, compared to net income from continuing operations for the six months ended June 30, 2013, of $159 million, or 66 cents per share. This earnings increase reflected much colder winter and warmer early summer temperatures in 2014, which drove higher native load electric and natural gas sales volumes, as well as the absence of 2013 Callaway refueling outage expenses and a 2013 Missouri FAC-related charge. The positive earnings comparison was also the result of increased rates, effective Jan. 1, 2014, for FERC-regulated electric transmission and Illinois natural gas delivery services. In addition, interest expense and Parent Company and Other operations and maintenance expenses decreased.

Guidance for Earnings from Continuing Operations

Ameren continues to expect earnings per share to be in a range of $2.30 to $2.50 for 2014 and to grow at a 7% to 10% compound annual rate through 2018 using 2013 results from continuing operations as the base. This expected five-year growth is driven primarily by infrastructure investments in FERC-regulated electric transmission and Illinois-regulated energy delivery services.

Keywords for this news article include: Energy, Oil & Gas, Natural Gas, Ameren Corporation.

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Source: Energy Weekly News


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