ST. LOUIS, Aug. 3, 2018 /PRNewswire/ -- Ameren Corporation (NYSE: AEE) today announced second quarter 2018 net income attributable to common shareholders of $239 million, or $0.97 per diluted share, compared to second quarter 2017 net income attributable to common shareholders of $193 million, or $0.79 per diluted share.
The increase in year-over-year second quarter earnings reflected higher Ameren Missouri electric retail sales primarily due to extremely warm early summer temperatures compared to near-normal temperatures in the year-ago period. The comparison also benefited from earnings on increased infrastructure investments made at Ameren Transmission, Ameren Illinois Electric Distribution and Ameren Illinois Natural Gas. These favorable factors were partially offset by increased Ameren Missouri other operations and maintenance expenses, primarily reflecting higher-than-normal scheduled non-nuclear plant outage costs. While Ameren's effective income tax rate was lower in 2018 compared to 2017 reflecting federal tax reform, this benefit was offset by a reduction in revenues reflecting the pass through of those savings to customers.
"Our team continues to successfully execute all elements of our strategy," said Warner L. Baxter, chairman, president and chief executive officer of Ameren Corporation. "Further, we have raised our 2018 guidance to a range of $3.15 to $3.35 per share, up from our prior range of $2.95 to $3.15 per share, due primarily to the benefit of extremely warm weather this quarter."
"In addition, we are very pleased Missouri has enacted forward-thinking electric grid modernization legislation that will deliver significant benefits to our customers and the state," Baxter said. "Beginning this month, rates for all customers were reduced 6 percent to pass on savings from the lower federal income tax rate. Further, this legislation supports Ameren Missouri's ability to invest approximately $1 billion of incremental capital over the next five years to modernize Missouri's electric grid and create significant jobs."
Ameren recorded net income attributable to common shareholders for the six months ended June 30, 2018, of $390 million, or $1.59 per diluted share, compared to net income attributable to common shareholders for the six months ended June 30, 2017, of $295 million, or $1.21 per diluted share.
The increase in year-over-year six-month earnings reflected higher Ameren Missouri electric retail sales, primarily due to colder winter and extremely warm early summer temperatures. The comparison also benefited from higher Ameren Missouri electric service rates, effective April 1, 2017, as well as earnings on increased infrastructure investments made at Ameren Transmission, Ameren Illinois Electric Distribution and Ameren Illinois Natural Gas. These favorable factors were partially offset by increased Ameren Missouri other operations and maintenance expenses, primarily reflecting higher-than-normal scheduled non-nuclear plant outage costs. While Ameren's effective income tax rate was lower in 2018 compared to 2017 reflecting federal tax reform, this benefit was offset by a reduction in revenues reflecting the pass through of those savings to customers.
Earnings Guidance
Ameren now expects its 2018 earnings to be in a range of $3.15 to $3.35 per diluted share, an increase from its prior range of $2.95 to $3.15 per diluted share. This updated guidance reflects an estimated 21 cents per share increase in earnings related to both colder- and warmer-than-normal temperatures over the first half of the year, as well as solid execution of Ameren's strategy.
Earnings guidance for 2018 assumes normal temperatures for the last six months of this year and is subject to the effects of, among other things: 30-year U.S. Treasury bond yields; regulatory, judicial and legislative actions; energy center and energy distribution operations; energy, economic, capital and credit market conditions; severe storms; unusual or otherwise unexpected gains or losses; and other risks and uncertainties outlined, or referred to, in the Forward-looking Statements section of this press release.
Ameren Missouri Segment Results
Ameren Missouri second quarter 2018 earnings were $168 million, compared to second quarter 2017 earnings of $120 million. The increase in year-over-year earnings reflected higher electric retail sales primarily due to extremely warm early summer temperatures compared to near-normal temperatures in the year-ago period. This favorable factor was partially offset by increased other operations and maintenance expenses, primarily reflecting higher-than-normal scheduled non-nuclear plant outage costs.
Ameren Illinois Electric Distribution Segment Results
Ameren Illinois Electric Distribution second quarter earnings were $33 million for both 2018 and 2017.
Ameren Illinois Natural Gas Segment Results
Ameren Illinois Natural Gas second quarter 2018 earnings were $7 million, compared to second quarter 2017 earnings of $5 million. The year-over-year improvement reflected increased earnings on infrastructure investments.
Ameren Transmission Segment Results
Ameren Transmission second quarter 2018 earnings were $36 million, compared to second quarter 2017 earnings of $34 million. The year-over-year improvement reflected increased earnings on infrastructure investments.
Other Results
Other results, which includes items not reported in a business segment, decreased $6 million for the second quarter of 2018, compared to the second quarter of 2017. The decrease was due, in part, to higher charitable donations.
Analyst Conference Call
Ameren will conduct a conference call for financial analysts at 9 a.m. Central Time on Friday, Aug. 3, to discuss 2018 earnings, earnings guidance and other matters. Investors, the news media and the public may listen to a live broadcast of the call at AmerenInvestors.com by clicking on "Webcast" under "Q2 2018 Earnings Conference Call," where an accompanying slide presentation will also be available. The conference call and presentation will be archived for one year in the "Investor News & Events" section of the website under "Events and Presentations."
About Ameren
St. Louis-based Ameren Corporation powers the quality of life for 2.4 million electric customers and more than 900,000 natural gas customers in a 64,000-square-mile area through its Ameren Missouri and Ameren Illinois rate-regulated utility subsidiaries. Ameren Illinois provides electric transmission and distribution service and natural gas distribution service. Ameren Missouri provides electric generation, transmission and distribution service, as well as natural gas distribution service. Ameren Transmission Company of Illinois develops, owns and operates rate-regulated regional electric transmission projects. For more information, visit Ameren.com, or follow us on Twitter at @AmerenCorp, Facebook.com/AmerenCorp, or LinkedIn/company/Ameren.
Forward-looking Statements
Statements in this release not based on historical facts are considered "forward-looking" and, accordingly, involve risks and uncertainties that could cause actual results to differ materially from those discussed. Although such forward-looking statements have been made in good faith and are based on reasonable assumptions, there is no assurance that the expected results will be achieved. These statements include (without limitation) statements as to future expectations, beliefs, plans, strategies, objectives, events, conditions, and financial performance. In connection with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, we are providing this cautionary statement to identify important factors that could cause actual results to differ materially from those anticipated. The following factors, in addition to those discussed under Risk Factors in Ameren's Annual Report on Form 10-K for the year ended December 31, 2017, and elsewhere in this release and in our other filings with the Securities and Exchange Commission, could cause actual results to differ materially from management expectations suggested in such forward-looking statements:
New factors emerge from time to time, and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained or implied in any forward-looking statement. Given these uncertainties, undue reliance should not be placed on these forward-looking statements. Except to the extent required by the federal securities laws, we undertake no obligation to update or revise publicly any forward-looking statements to reflect new information or future events.
AMEREN CORPORATION (AEE) CONSOLIDATED STATEMENT OF INCOME (Unaudited, in millions, except per share amounts) | |||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
2018 |
2017 |
2018 |
2017 | ||||||||||||
Operating Revenues: |
|||||||||||||||
Electric |
$ |
1,396 |
$ |
1,382 |
$ |
2,619 |
$ |
2,589 |
|||||||
Natural gas |
167 |
155 |
529 |
463 |
|||||||||||
Total operating revenues |
1,563 |
1,537 |
3,148 |
3,052 |
|||||||||||
Operating Expenses: |
|||||||||||||||
Fuel |
186 |
189 |
374 |
395 |
|||||||||||
Purchased power |
142 |
150 |
305 |
330 |
|||||||||||
Natural gas purchased for resale |
51 |
41 |
222 |
171 |
|||||||||||
Other operations and maintenance |
439 |
431 |
870 |
849 |
|||||||||||
Depreciation and amortization |
238 |
222 |
472 |
443 |
|||||||||||
Taxes other than income taxes |
122 |
117 |
247 |
235 |
|||||||||||
Total operating expenses |
1,178 |
1,150 |
2,490 |
2,423 |
|||||||||||
Operating Income |
385 |
387 |
658 |
629 |
|||||||||||
Other Income, Net |
29 |
20 |
52 |
38 |
|||||||||||
Interest Charges |
100 |
99 |
201 |
198 |
|||||||||||
Income Before Income Taxes |
314 |
308 |
509 |
469 |
|||||||||||
Income Taxes |
74 |
114 |
116 |
171 |
|||||||||||
Net Income |
240 |
194 |
393 |
298 |
|||||||||||
Less: Net Income Attributable to Noncontrolling Interests |
1 |
1 |
3 |
3 |
|||||||||||
Net Income Attributable to Ameren Common Shareholders |
$ |
239 |
$ |
193 |
$ |
390 |
$ |
295 |
|||||||
Earnings per Common Share – Basic |
$ |
0.98 |
$ |
0.79 |
$ |
1.60 |
$ |
1.21 |
|||||||
Earnings per Common Share – Diluted |
$ |
0.97 |
$ |
0.79 |
$ |
1.59 |
$ |
1.21 |
|||||||
Weighted-average Common Shares Outstanding – Basic |
243.7 |
242.6 |
243.3 |
242.6 |
|||||||||||
Weighted-average Common Shares Outstanding – Diluted |
245.8 |
243.5 |
245.1 |
243.7 |
AMEREN CORPORATION (AEE) CONSOLIDATED BALANCE SHEET (Unaudited, in millions) | |||||||
June 30, 2018 |
December 31, | ||||||
ASSETS |
|||||||
Current Assets: |
|||||||
Cash and cash equivalents |
$ |
29 |
$ |
10 |
|||
Accounts receivable - trade (less allowance for doubtful accounts) |
560 |
445 |
|||||
Unbilled revenue |
371 |
323 |
|||||
Miscellaneous accounts receivable |
74 |
70 |
|||||
Inventories |
475 |
522 |
|||||
Current regulatory assets |
104 |
144 |
|||||
Other current assets |
72 |
98 |
|||||
Total current assets |
1,685 |
1,612 |
|||||
Property, Plant, and Equipment, Net |
21,998 |
21,466 |
|||||
Investments and Other Assets: |
|||||||
Nuclear decommissioning trust fund |
714 |
704 |
|||||
Goodwill |
411 |
411 |
|||||
Regulatory assets |
1,205 |
1,230 |
|||||
Other assets |
626 |
522 |
|||||
Total investments and other assets |
2,956 |
2,867 |
|||||
TOTAL ASSETS |
$ |
26,639 |
$ |
25,945 |
|||
LIABILITIES AND EQUITY |
|||||||
Current Liabilities: |
|||||||
Current maturities of long-term debt |
$ |
847 |
$ |
841 |
|||
Short-term debt |
506 |
484 |
|||||
Accounts and wages payable |
565 |
902 |
|||||
Taxes accrued |
139 |
52 |
|||||
Interest accrued |
109 |
99 |
|||||
Customer deposits |
114 |
108 |
|||||
Current regulatory liabilities |
133 |
128 |
|||||
Other current liabilities |
298 |
326 |
|||||
Total current liabilities |
2,711 |
2,940 |
|||||
Long-term Debt, Net |
7,613 |
7,094 |
|||||
Deferred Credits and Other Liabilities: |
|||||||
Accumulated deferred income taxes, net |
2,584 |
2,506 |
|||||
Accumulated deferred investment tax credits |
46 |
49 |
|||||
Regulatory liabilities |
4,540 |
4,387 |
|||||
Asset retirement obligations |
641 |
638 |
|||||
Pension and other postretirement benefits |
545 |
545 |
|||||
Other deferred credits and liabilities |
431 |
460 |
|||||
Total deferred credits and other liabilities |
8,787 |
8,585 |
|||||
Ameren Corporation Shareholders' Equity: |
|||||||
Common stock |
2 |
2 |
|||||
Other paid-in capital, principally premium on common stock |
5,576 |
5,540 |
|||||
Retained earnings |
1,827 |
1,660 |
|||||
Accumulated other comprehensive loss |
(19) |
(18) |
|||||
Total Ameren Corporation shareholders' equity |
7,386 |
7,184 |
|||||
Noncontrolling Interests |
142 |
142 |
|||||
Total equity |
7,528 |
7,326 |
|||||
TOTAL LIABILITIES AND EQUITY |
$ |
26,639 |
$ |
25,945 |
AMEREN CORPORATION (AEE) CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited, in millions) | |||||||
Six Months Ended June 30, | |||||||
2018 |
2017 | ||||||
Cash Flows From Operating Activities: |
|||||||
Net income |
$ |
393 |
$ |
298 |
|||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
Depreciation and amortization |
463 |
433 |
|||||
Amortization of nuclear fuel |
48 |
48 |
|||||
Amortization of debt issuance costs and premium/discounts |
11 |
11 |
|||||
Deferred income taxes and investment tax credits, net |
81 |
175 |
|||||
Allowance for equity funds used during construction |
(14) |
(10) |
|||||
Stock-based compensation costs |
10 |
8 |
|||||
Other |
11 |
(5) |
|||||
Changes in assets and liabilities |
(183) |
(95) |
|||||
Net cash provided by operating activities |
820 |
863 |
|||||
Cash Flows From Investing Activities: |
|||||||
Capital expenditures |
(1,112) |
(998) |
|||||
Nuclear fuel expenditures |
(16) |
(50) |
|||||
Purchases of securities – nuclear decommissioning trust fund |
(129) |
(161) |
|||||
Sales and maturities of securities – nuclear decommissioning trust fund |
122 |
152 |
|||||
Other |
6 |
(2) |
|||||
Net cash used in investing activities |
(1,129) |
(1,059) |
|||||
Cash Flows From Financing Activities: |
|||||||
Dividends on common stock |
(223) |
(214) |
|||||
Dividends paid to noncontrolling interest holders |
(3) |
(3) |
|||||
Short-term debt, net |
21 |
334 |
|||||
Maturities of long-term debt |
(323) |
(425) |
|||||
Issuances of long-term debt |
853 |
549 |
|||||
Issuances of common stock |
40 |
— |
|||||
Repurchases of common stock for stock-based compensation |
— |
(24) |
|||||
Employee payroll taxes related to stock-based compensation |
(19) |
(15) |
|||||
Debt issuance costs |
(9) |
(4) |
|||||
Other |
— |
(1) |
|||||
Net cash provided by financing activities |
337 |
197 |
|||||
Net change in cash, cash equivalents, and restricted cash |
28 |
1 |
|||||
Cash, cash equivalents, and restricted cash at beginning of year |
68 |
52 |
|||||
Cash, cash equivalents, and restricted cash at end of period |
$ |
96 |
$ |
53 |
AMEREN CORPORATION (AEE) OPERATING STATISTICS | |||||||||||||||
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
2018 |
2017 |
2018 |
2017 | ||||||||||||
Electric Sales - kilowatthours (in millions): |
|||||||||||||||
Ameren Missouri |
|||||||||||||||
Residential |
3,346 |
2,737 |
7,126 |
5,922 |
|||||||||||
Commercial |
3,724 |
3,556 |
7,252 |
6,888 |
|||||||||||
Industrial |
1,137 |
1,144 |
2,190 |
2,171 |
|||||||||||
Street lighting and public authority |
25 |
24 |
54 |
57 |
|||||||||||
Ameren Missouri retail load subtotal |
8,232 |
7,461 |
16,622 |
15,038 |
|||||||||||
Off-system |
2,316 |
3,471 |
4,865 |
6,659 |
|||||||||||
Ameren Missouri total |
10,548 |
10,932 |
21,487 |
21,697 |
|||||||||||
Ameren Illinois Electric Distribution |
|||||||||||||||
Residential |
2,859 |
2,416 |
5,930 |
5,133 |
|||||||||||
Commercial |
3,137 |
2,934 |
6,114 |
5,851 |
|||||||||||
Industrial |
2,922 |
2,811 |
5,728 |
5,566 |
|||||||||||
Street lighting and public authority |
113 |
125 |
259 |
257 |
|||||||||||
Ameren Illinois Electric Distribution total |
9,031 |
8,286 |
18,031 |
16,807 |
|||||||||||
Eliminate affiliate sales |
(84) |
(97) |
(162) |
(265) |
|||||||||||
Ameren Total |
19,495 |
19,121 |
39,356 |
38,239 |
|||||||||||
Electric Revenues (in millions): |
|||||||||||||||
Ameren Missouri |
|||||||||||||||
Residential |
$ |
432 |
$ |
358 |
$ |
764 |
$ |
644 |
|||||||
Commercial |
364 |
332 |
616 |
562 |
|||||||||||
Industrial |
87 |
84 |
148 |
142 |
|||||||||||
Other, including street lighting and public authority |
(15) |
11 |
12 |
46 |
|||||||||||
Ameren Missouri retail load subtotal |
$ |
868 |
$ |
785 |
$ |
1,540 |
$ |
1,394 |
|||||||
Off-system |
62 |
127 |
131 |
265 |
|||||||||||
Ameren Missouri total |
$ |
930 |
$ |
912 |
$ |
1,671 |
$ |
1,659 |
|||||||
Ameren Illinois Electric Distribution |
|||||||||||||||
Residential |
$ |
221 |
$ |
208 |
$ |
440 |
$ |
427 |
|||||||
Commercial |
126 |
129 |
250 |
262 |
|||||||||||
Industrial |
33 |
28 |
68 |
56 |
|||||||||||
Other, including street lighting and public authority |
7 |
24 |
29 |
29 |
|||||||||||
Ameren Illinois Electric Distribution total |
$ |
387 |
$ |
389 |
$ |
787 |
$ |
774 |
|||||||
Ameren Transmission |
|||||||||||||||
Ameren Illinois Transmission(a) |
$ |
62 |
$ |
65 |
$ |
124 |
$ |
125 |
|||||||
ATXI |
41 |
40 |
83 |
82 |
|||||||||||
Ameren Transmission total |
$ |
103 |
$ |
105 |
$ |
207 |
$ |
207 |
|||||||
Other and intersegment eliminations(a) |
(24) |
(24) |
(46) |
(51) |
|||||||||||
Ameren Total |
$ |
1,396 |
$ |
1,382 |
$ |
2,619 |
$ |
2,589 |
(a) |
Includes $13 million, $12 million, $26 million and $18 million, respectively, of electric operating revenues from transmission services provided to the Ameren Illinois Electric Distribution segment. |
AMEREN CORPORATION (AEE) OPERATING STATISTICS | |||||||||||||||
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
2018 |
2017 |
2018 |
2017 | ||||||||||||
Gas Sales - dekatherms (in millions): |
|||||||||||||||
Ameren Missouri |
3 |
3 |
12 |
9 |
|||||||||||
Ameren Illinois Natural Gas |
34 |
29 |
102 |
87 |
|||||||||||
Ameren Total |
37 |
32 |
114 |
96 |
|||||||||||
Gas Revenues (in millions): |
|||||||||||||||
Ameren Missouri |
$ |
25 |
$ |
22 |
$ |
76 |
$ |
66 |
|||||||
Ameren Illinois Natural Gas |
142 |
134 |
453 |
398 |
|||||||||||
Eliminate affiliate revenues |
— |
(1) |
— |
(1) |
|||||||||||
Ameren Total |
$ |
167 |
$ |
155 |
$ |
529 |
$ |
463 |
|||||||
June 30, |
December 31, | ||||||||||||||
2018 |
2017 | ||||||||||||||
Common Stock: |
|||||||||||||||
Shares outstanding (in millions) |
244.0 |
242.6 |
|||||||||||||
Book value per share |
$ |
30.27 |
$ |
29.61 |
SOURCE Ameren Corporation