CON EDISON REPORTS 2024 SECOND QUARTER EARNINGS
Rhea-AI Summary
Con Edison (NYSE: ED) reported 2024 second quarter net income of $202 million ($0.58 per share), down from $226 million ($0.65 per share) in Q2 2023. Adjusted earnings were $203 million ($0.59 per share), compared to $210 million ($0.61 per share) in Q2 2023. For the first six months of 2024, net income was $922 million ($2.67 per share), down from $1,658 million ($4.74 per share) in H1 2023. However, adjusted earnings increased to $945 million ($2.73 per share) from $856 million ($2.45 per share) in H1 2023.
Con Edison reaffirmed its 2024 adjusted earnings per share guidance of $5.20 to $5.40. The company highlighted its reliable electric service and investments in clean energy infrastructure. CEO Tim Cawley emphasized the company's commitment to energy equity and the clean energy transition.
Positive
- Reaffirmed 2024 adjusted earnings per share guidance of $5.20 to $5.40
- Adjusted earnings for H1 2024 increased to $945 million ($2.73 per share) from $856 million ($2.45 per share) in H1 2023
- Recognized for providing the most reliable electric service in the state
- Investing in clean energy infrastructure and disadvantaged communities
Negative
- Q2 2024 net income decreased to $202 million from $226 million in Q2 2023
- Q2 2024 adjusted earnings decreased to $203 million from $210 million in Q2 2023
- Denial of request to capitalize incremental costs for new customer billing system implementation
Insights
Con Edison's Q2 2024 results reveal a slight decline in performance compared to the same period last year. Net income for common stock decreased from
However, the company's performance for the first half of 2024 shows improvement. Adjusted earnings for the six-month period increased from
Despite the quarterly dip, Con Edison maintains its 2024 adjusted earnings per share guidance of
The denial of the company's request to capitalize costs related to a new customer billing system impacted the quarterly results. However, management's outlook remains positive, citing expected growth in electric volumes as New Yorkers shift away from fossil fuels. This transition is likely to create investment opportunities that could drive future earnings growth.
Investors should note that while quarterly fluctuations occur, Con Edison's overall financial health and long-term prospects appear stable. The company's focus on reliability, strategic investments in clean energy infrastructure and commitment to energy equity position it well for the evolving energy landscape in New York.
Con Edison's latest earnings report underscores the company's strategic positioning in the ongoing energy transition. The emphasis on reliability, as evidenced by their top performance in the regulator's annual report, demonstrates a commitment to maintaining high-quality service while adapting to new energy paradigms.
The company's focus on clean energy infrastructure is particularly noteworthy. Con Edison is actively investing in new substations and transmission lines to facilitate the integration of renewable energy sources. This proactive approach aligns with New York State's ambitious clean energy goals and positions the company as a key player in the state's energy future.
Moreover, Con Edison's dedication to energy equity, as highlighted in their recent report on investing in disadvantaged communities, is a important aspect of their strategy. This commitment not only addresses social responsibility concerns but also potentially opens up new market segments and strengthens community relations.
The anticipated growth in electric volumes, driven by the electrification of heating and transportation, presents significant opportunities for Con Edison. As New Yorkers transition away from fossil fuels, the company stands to benefit from increased demand for its core product. This trend could lead to substantial long-term growth in revenue and earnings.
However, challenges remain, such as the regulatory decision to deny capitalization of costs related to the new billing system. This highlights the ongoing need for effective engagement with regulators to ensure fair treatment of necessary investments.
Overall, Con Edison's strategy appears well-aligned with the broader energy transition, positioning the company for potential long-term success in a rapidly evolving industry landscape.
For the first six months of 2024, net income for common stock was
"We are proud that our regulator's annual report on utility performance once again showed that we provide customers with the most reliable electric service in the state," said Tim Cawley, the chairman and CEO of Con Edison. "This is a tribute to our robust strategic investments, the dedication of our crews, and valuable engagement with our customers. We are maintaining the stellar service that has been our hallmark for decades while building new substations, transmission lines and other infrastructure to bring clean energy to our customers. As we made clear in our recent report on investing in disadvantaged communities, we are dedicated to energy equity and want everyone to benefit from the clean energy transition. That will enhance our region's economy and environment and make our company even stronger."
"We continue to deliver strong financial results, notwithstanding the impact of the denial of our request to capitalize incremental costs for the successful implementation of our new customer billing and information system," said Kirk Andrews, senior vice president and CFO of Con Edison. "We remain confident in our outlook for the year and are maintaining our 2024 adjusted earnings per share guidance range. We expect electric volumes to grow in the coming years, as New Yorkers transition from fossil fuels to heat their buildings and power their vehicles, providing us with attractive investment opportunities that will enable us to continue our long record of strong, stable returns for our investors. Our expertise in providing energy and our emphasis on supporting a diverse, talented workforce make us confident that we will make the right investments and execute efficiently and effectively."
For the year of 2024, Con Edison reaffirmed its previous forecast of adjusted earnings per share to be in the range of
See Attachment A to this press release for a reconciliation of Con Edison's reported earnings per share to adjusted earnings per share and reported net income for common stock to adjusted earnings for the three and six months ended June 30, 2024 and 2023. See Attachments B and C for the estimated effect of major factors resulting in variations in earnings per share and net income for common stock for the three and six months ended June 30, 2024 compared to the 2023 periods.
The company's 2024 Second Quarter Form 10-Q is being filed with the Securities and Exchange Commission. A second quarter 2024 earnings release presentation will be available at www.conedison.com. (Select "For Investors" and then select "Press Releases.")
This press release contains forward-looking statements that are intended to qualify for the safe-harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements of future expectations and not facts. Words such as "forecasts," "expects," "estimates," "anticipates," "intends," "believes," "plans," "will," "target," "guidance," "potential," "goal," "consider" and similar expressions identify forward-looking statements. The forward-looking statements reflect information available and assumptions at the time the statements are made, and accordingly speak only as of that time.
Actual results or developments might differ materially from those included in the forward-looking statements because of various factors such as those identified in reports Con Edison has filed with the Securities and Exchange Commission, including that Con Edison's subsidiaries are extensively regulated and are subject to substantial penalties; its utility subsidiaries' rate plans may not provide a reasonable return; it may be adversely affected by changes to the utility subsidiaries' rate plans; the failure of, or damage to, its subsidiaries' facilities could adversely affect it; a cyber-attack could adversely affect it; the failure of processes and systems, the failure to retain and attract employees and contractors, and their negative performance could adversely affect it; it is exposed to risks from the environmental consequences of its subsidiaries' operations, including increased costs related to climate change; its ability to pay dividends or interest depends on dividends from its subsidiaries; changes to tax laws could adversely affect it; it requires access to capital markets to satisfy funding requirements; a disruption in the wholesale energy markets, increased commodity costs or failure by an energy supplier or customer could adversely affect it; it faces risks related to health epidemics and other outbreaks; its strategies may not be effective to address changes in the external business environment; it faces risks related to supply chain disruptions and inflation; and it also faces other risks that are beyond its control. This list of factors is not all-inclusive because it is not possible to predict all factors. Con Edison assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
This press release also contains financial measures, adjusted earnings and adjusted earnings per share, that are not determined in accordance with generally accepted accounting principles in
Consolidated Edison, Inc. is one of the nation's largest investor-owned energy-delivery companies, with approximately
Attachment A | |||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||
June 30, | June 30, | ||||||||
Earnings per Share | Net Income for (Millions of Dollars) | Earnings per Share | Net Income for (Millions of Dollars) | ||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||
Reported earnings per share (basic) | |||||||||
Gain and other impacts related to | — | (0.03) | — | (12) | 0.08 | (2.56) | 30 | (895) | |
Income taxes (a)(b) | — | (0.02) | — | (6) | (0.02) | 0.24 | (8) | 83 | |
Gain and other impacts related to sale | — | (0.05) | — | (18) | 0.06 | (2.32) | 22 | (812) | |
HLBV effects (pre-tax) | 0.01 | 0.01 | 1 | 3 | — | — | 1 | 1 | |
Income taxes (c) | — | — | — | (1) | — | — | — | — | |
HLBV effects (net of tax) | 0.01 | 0.01 | 1 | 2 | — | — | 1 | 1 | |
Net mark-to-market effects (pre-tax) | — | — | — | — | — | 0.04 | — | 13 | |
Income taxes (d) | — | — | — | — | — | (0.01) | — | (4) | |
Net mark-to-market effects (net of tax) | — | — | — | — | — | 0.03 | — | 9 | |
Adjusted earnings per share and | |||||||||
(a) | The gain and other impacts related to the sale of all of the stock of the Clean Energy Businesses were adjusted during the six months ended June 30, 2024 ( |
(b) | The amount of income taxes for the adjustment on the gain on the sale of all of the stock of the Clean Energy Businesses had an effective tax rate of |
(c) | The amount of income taxes was calculated using a combined federal and state income tax rate of |
(d) | The amount of income taxes was calculated using a combined federal and state income tax rate of |
Attachment B | ||
Variation for the Three Months Ended June 30, 2024 vs. 2023 | ||
Net Income for | Earnings per Share | |
CECONY (a) | ||
Higher electric rate base | ||
New steam rate plan effective November 2023 | 12 | 0.03 |
Higher gas rate base | 4 | 0.01 |
Change in incentives earned under the electric and gas earnings adjustment mechanisms | 3 | 0.01 |
Impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission | (37) | (0.11) |
Higher health care costs | (7) | (0.02) |
Other | 5 | 0.02 |
Total CECONY | (3) | (0.01) |
O&R (a) | ||
Gas base rate increase | 1 | — |
Higher storm-related costs | (4) | (0.01) |
Other | (2) | — |
Total O&R | (5) | (0.01) |
Con Edison Transmission | ||
Higher investment income and an income tax adjustment due to allowance for funds used during | 7 | 0.02 |
Other | 2 | 0.01 |
Total Con Edison Transmission | 9 | 0.03 |
Other, including parent company expenses | ||
HLBV effects | 1 | — |
Gain and other impacts related to the sale of the Clean Energy Businesses | (18) | (0.05) |
Lower interest income | (6) | (0.02) |
Other | (2) | (0.01) |
Total Other, including parent company expenses | (25) | (0.08) |
Total Reported (GAAP basis) | ||
Gain and other impacts related to the sale of the Clean Energy Businesses | 18 | 0.05 |
HLBV effects | (1) | — |
Total Adjusted (Non-GAAP basis) | ||
a. | Under the revenue decoupling mechanisms in the Utilities' |
Attachment C | ||
Variation for the Six Months Ended June 30, 2024 vs. 2023 | ||
Net Income for | Earnings per Share | |
CECONY (a) | ||
New steam rate plan effective November 2023 | ||
Higher electric rate base | 32 | 0.09 |
Higher gas rate base | 29 | 0.08 |
Change in incentives earned under the electric and gas earnings adjustment mechanisms | 4 | 0.01 |
Impact of the NYSPSC order denying an April 2023 petition by CECONY that requested | (37) | (0.11) |
Accretive effect of share repurchase | — | 0.04 |
Other | — | 0.01 |
Total CECONY | 87 | 0.28 |
O&R (a) | ||
Electric base rate increase | 7 | 0.02 |
Gas base rate increase | 2 | 0.01 |
Other | (8) | (0.02) |
Total O&R | 1 | 0.01 |
Clean Energy Businesses (b) | ||
Total Clean Energy Businesses | (22) | (0.06) |
Con Edison Transmission | ||
Higher investment income and an income tax adjustment due to AFUDC from Mountain Valley | 15 | 0.04 |
Other | 3 | 0.01 |
Total Con Edison Transmission | 18 | 0.05 |
Other, including parent company expenses | ||
HLBV effects | 3 | 0.01 |
Gain and other impacts related to the sale of the Clean Energy Businesses | (805) | (2.31) |
Lower interest income | (14) | (0.04) |
Other | (4) | (0.01) |
Total Other, including parent company expenses | (820) | (2.35) |
Total Reported (GAAP basis) | ( | |
Net mark-to-market effects | (9) | (0.03) |
Gain and other impacts related to the sale of the Clean Energy Businesses | 834 | 2.38 |
Total Adjusted (Non-GAAP basis) | ||
a. | Under the revenue decoupling mechanisms in the Utilities' |
b. | On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. |
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SOURCE Consolidated Edison, Inc.
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