Le Lézard
Classified in: Oil industry, Business, Covid-19 virus
Subjects: ERN, CCA

Ameren Announces Second Quarter 2020 Results


ST. LOUIS, Aug. 6, 2020 /PRNewswire/ -- Ameren Corporation (NYSE: AEE) today announced second quarter 2020 net income attributable to common shareholders of $243 million, or $0.98 per diluted share, compared to second quarter 2019 net income attributable to common shareholders of $179 million, or $0.72 per diluted share.

Second quarter 2020 results reflected earnings on increased infrastructure investments made across all business segments driven by solid execution of the company's strategy. The earnings improvement also resulted from lower Ameren Missouri operations and maintenance expenses due to the absence of a refueling and maintenance outage at the Callaway Energy Center compared to the year-ago period when there was such an outage, as well as disciplined cost management. Earnings at Ameren Missouri were also positively impacted by new electric service rates effective April 1, 2020 driven, in part, by earnings on increased infrastructure investments. In addition, Ameren Missouri experienced higher earnings from electric retail sales due to near-normal temperatures in the second quarter of 2020 compared to milder-than-normal temperatures in the year-ago period. This benefit offset lower electric retail sales due to the impacts of COVID-19. Finally, earnings increased at Ameren Transmission resulting from the impact of the May 2020 Federal Energy Regulatory Commission (FERC) order addressing the Midcontinent Independent System Operator (MISO) allowed base return on equity. These favorable factors were partially offset by a lower allowed return on equity at Ameren Illinois Electric Distribution.

"We continue to effectively manage through an unprecedented time in our country's and company's history due to COVID-19. We remain relentlessly focused on the safety of our co-workers, customers and communities, as well as delivering safe, reliable and affordable electric and natural gas services," said Warner L. Baxter, chairman, president and chief executive officer of Ameren Corporation. "While COVID-19 has presented certain financial challenges, we are executing on all elements of our strategy, including significant investment in energy infrastructure and disciplined cost management in each of our business segments. As a result, we remain on track to deliver within our 2020 earnings per share guidance range of $3.40 to $3.60."

Ameren recorded net income attributable to common shareholders for the six months ended June 30, 2020, of $389 million, or $1.57 per diluted share, compared to net income attributable to common shareholders for the six months ended June 30, 2019, of $370 million, or $1.50 per diluted share.

The year-over-year six month earnings comparison benefited from increased infrastructure investments made across all business segments. Earnings increased at Ameren Missouri due to the absence of a nuclear refueling and maintenance outage at the Callaway Energy Center compared to the year-ago period when there was such an outage and from new electric service rates effective April 1, 2020. Ameren Transmission earnings also benefited from the impact of the May 2020 FERC order addressing the MISO allowed base return on equity. These favorable factors were partially offset by lower Ameren Missouri electric retail sales, due in part to the impacts of COVID-19, and the absence of energy efficiency performance incentives. Ameren Illinois Electric Distribution earnings also decreased due to a lower allowed return on equity compared to the year-ago period.  Finally, Ameren Missouri's operations and maintenance expenses were comparable as disciplined cost management offset changes in the cash surrender value of company-owned life insurance driven by unfavorable market returns.

Earnings Guidance

Today, Ameren reaffirmed its 2020 earnings guidance range of $3.40 to $3.60 per diluted share. Earnings guidance for 2020 assumes normal temperatures for the last six months of the year and is subject to the effects of, among other things: the impacts of COVID-19; 30-year U.S. Treasury bond yields; regulatory, judicial and legislative actions; energy center and energy distribution operations; energy, economic and capital 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 2020 earnings were $152 million, compared to second quarter 2019 earnings of $107 million. The year-over-year comparison reflected lower operations and maintenance expenses due to the absence of a nuclear refueling and maintenance outage at the Callaway Energy Center, as well as disciplined cost management and changes in the cash surrender value of company-owned life insurance driven by favorable market returns. Earnings also increased due to new electric service rates and the positive impact on electric sales from near-normal temperatures in the second quarter of 2020 compared to milder-than-normal temperatures in the year-ago period. These favorable factors more than offset lower electric retail sales due to the impacts of COVID-19.

Ameren Illinois Electric Distribution Segment Results

Ameren Illinois Electric Distribution second quarter 2020 earnings were $36 million, compared to second quarter 2019 earnings of $37 million. The year-over-year comparison reflected increased earnings on infrastructure investments that were more than offset by a lower allowed return on equity due to a lower projected average 30-year U.S. Treasury bond yield in 2020 compared to 2019.

Ameren Illinois Natural Gas Segment Results

Ameren Illinois Natural Gas second quarter 2020 earnings were $9 million, compared to second quarter 2019 earnings of $1 million. The year-over-year comparison reflected increased earnings on infrastructure investments and lower other operations and maintenance expenses.

Ameren Transmission Segment Results

Ameren Transmission second quarter 2020 earnings were $59 million, compared to second quarter 2019 earnings of $42 million. The year-over-year improvement reflected increased earnings on infrastructure investments and the impact of the May 2020 FERC order addressing the MISO allowed base return on equity.

Ameren Parent Results (includes items not reported in a business segment)

Ameren Parent results for the second quarter of 2020 reflected a loss of $13 million, compared to a second quarter 2019 loss of $8 million. The year-over-year comparison reflected increased interest expense primarily due to higher long-term debt.

Analyst Conference Call

Ameren will conduct a conference call for financial analysts at 9 a.m. Central Time on Friday, Aug. 7, to discuss 2020 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 2020 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, projections, 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, 2019, Form 10-Q for the quarter ended March 31, 2020, 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,


2020


2019


2020


2019

Operating Revenues:








Electric

$

1,237



$

1,218



$

2,357



$

2,400


Natural gas

161



161



481



535


Total operating revenues

1,398



1,379



2,838



2,935


Operating Expenses:








Fuel

119



102



259



262


Purchased power

109



136



243



292


Natural gas purchased for resale

42



44



149



205


Other operations and maintenance

384



450



822



867


Depreciation and amortization

271



249



526



497


Taxes other than income taxes

119



118



244



244


Total operating expenses

1,044



1,099



2,243



2,367


Operating Income

354



280



595



568


Other Income, Net

48



36



69



65


Interest Charges

108



97



201



194


Income Before Income Taxes

294



219



463



439


Income Taxes

50



39



71



66


Net Income

244



180



392



373


Less: Net Income Attributable to Noncontrolling Interests

1



1



3



3


Net Income Attributable to Ameren Common Shareholders

$

243



$

179



$

389



$

370










Earnings per Common Share ? Basic

$

0.99



$

0.73



$

1.58



$

1.51










Earnings per Common Share ? Diluted

$

0.98



$

0.72



$

1.57



$

1.50










Weighted-average Common Shares Outstanding ? Basic

246.9



245.6



246.7



245.3


Weighted-average Common Shares Outstanding ? Diluted

247.9



247.2



248.0



246.8


 

AMEREN CORPORATION (AEE)

CONSOLIDATED BALANCE SHEET

(Unaudited, in millions)



June 30,
2020


December 31,
2019

ASSETS




Current Assets:




Cash and cash equivalents

$

8



$

16


Accounts receivable - trade (less allowance for doubtful accounts)

486



393


Unbilled revenue

323



278


Miscellaneous accounts receivable

76



63


Inventories

514



494


Current regulatory assets

82



69


Other current assets

131



118


Total current assets

1,620



1,431


Property, Plant, and Equipment, Net

25,081



24,376


Investments and Other Assets:




Nuclear decommissioning trust fund

854



847


Goodwill

411



411


Regulatory assets

1,133



992


Other assets

917



876


Total investments and other assets

3,315



3,126


TOTAL ASSETS

$

30,016



$

28,933


LIABILITIES AND EQUITY




Current Liabilities:




Current maturities of long-term debt

$

357



$

442


Short-term debt

120



440


Accounts and wages payable

616



874


Taxes accrued

142



37


Interest accrued

118



94


Customer deposits

126



111


Current regulatory liabilities

147



164


Other current liabilities

374



343


Total current liabilities

2,000



2,505


Long-term Debt, Net

10,171



8,915


Deferred Credits and Other Liabilities:




Accumulated deferred income taxes and investment tax credits, net

3,034



2,919


Regulatory liabilities

4,933



4,887


Asset retirement obligations

639



638


Pension and other postretirement benefits

414



401


Other deferred credits and liabilities

456



467


Total deferred credits and other liabilities

9,476



9,312


Ameren Corporation Shareholders' Equity:




Common stock

2



2


Other paid-in capital, principally premium on common stock

5,716



5,694


Retained earnings

2,525



2,380


Accumulated other comprehensive loss

(16)



(17)


Total Ameren Corporation shareholders' equity

8,227



8,059


Noncontrolling Interests

142



142


Total equity

8,369



8,201


TOTAL LIABILITIES AND EQUITY

$

30,016



$

28,933


 

AMEREN CORPORATION (AEE)

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited, in millions)



Six Months Ended June 30,


2020


2019

Cash Flows From Operating Activities:




Net income

$

392



$

373


Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization

532



494


Amortization of nuclear fuel

45



33


Amortization of debt issuance costs and premium/discounts

11



9


Deferred income taxes and investment tax credits, net

68



54


Allowance for equity funds used during construction

(13)



(13)


Stock-based compensation costs

11



10


Other

5



(5)


Changes in assets and liabilities

(357)



(76)


Net cash provided by operating activities

694



879


Cash Flows From Investing Activities:




Capital expenditures

(1,228)



(1,125)


Nuclear fuel expenditures

(56)



(25)


Purchases of securities ? nuclear decommissioning trust fund

(153)



(96)


Sales and maturities of securities ? nuclear decommissioning trust fund

121



95


Purchase of bonds

?



(97)


Proceeds from sale of remarketed bonds

?



97


Other

1



(3)


Net cash used in investing activities

(1,315)



(1,154)


Cash Flows From Financing Activities:




Dividends on common stock

(244)



(233)


Dividends paid to noncontrolling interest holders

(3)



(3)


Short-term debt, net

(320)



401


Maturities of long-term debt

(85)



(329)


Issuances of long-term debt

1,263



450


Issuances of common stock

27



37


Employee payroll taxes related to stock-based compensation

(20)



(29)


Debt issuance costs

(10)



(4)


Net cash provided by financing activities

608



290


Net change in cash, cash equivalents, and restricted cash

(13)



15


Cash, cash equivalents, and restricted cash at beginning of year

176



107


Cash, cash equivalents, and restricted cash at end of period

$

163



$

122


 

AMEREN CORPORATION (AEE)

OPERATING STATISTICS



Three Months Ended


Six Months Ended


June 30,


June 30,


2020


2019


2020


2019

Electric Sales - kilowatthours (in millions):








Ameren Missouri








Residential

2,994



2,688



6,542



6,526


Commercial

3,020



3,426



6,372



6,975


Industrial

981



1,080



1,972



2,092


Street lighting and public authority

19



21



44



49


Ameren Missouri retail load subtotal

7,014



7,215



14,930



15,642


Off-system

2,172



719



4,441



2,555


Ameren Missouri total

9,186



7,934



19,371



18,197


Ameren Illinois Electric Distribution








Residential

2,622



2,381



5,508



5,514


Commercial

2,563



2,919



5,419



5,876


Industrial

2,598



3,021



5,292



5,765


Street lighting and public authority

109



116



229



253


Ameren Illinois Electric Distribution total

7,892



8,437



16,448



17,408


Eliminate affiliate sales

(111)



(32)



(181)



(49)


Ameren Total

16,967



16,339



35,638



35,556


Electric Revenues (in millions):








Ameren Missouri








Residential

$

359



$

333



$

656



$

645


Commercial

264



310



485



549


Industrial

67



77



120



132


Other, including street lighting and public authority

36



29



48



70


Ameren Missouri retail load subtotal

$

726



$

749



$

1,309



$

1,396


Off-system

45



24



93



81


Ameren Missouri total

$

771



$

773



$

1,402



$

1,477


Ameren Illinois Electric Distribution








Residential

$

210



$

199



$

430



$

416


Commercial

112



124



238



247


Industrial

30



33



65



67


Other, including street lighting and public authority

?



3



9



16


Ameren Illinois Electric Distribution total

$

352



$

359



$

742



$

746


Ameren Transmission








Ameren Illinois Transmission(a)

$

86



$

66



$

161



$

136


       ATXI

50



43



98



87


Ameren Transmission total

$

136



$

109



$

259



$

223


Other and intersegment eliminations(a)

(22)



(23)



(46)



(46)


Ameren Total

$

1,237



$

1,218



$

2,357



$

2,400




(a)

Includes $12 million, $14 million, $24 million, and $29 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,


2020


2019


2020


2019

Gas Sales - dekatherms (in millions):








Ameren Missouri

4



3



12



12


Ameren Illinois Natural Gas

31



30



95



103


Ameren Total

35



33



107



115


Gas Revenues (in millions):







Ameren Missouri

$

21



$

25



$

70



$

79


Ameren Illinois Natural Gas

140



136



411



456


Ameren Total

$

161



$

161



$

481



$

535













June 30,




December 31,




2020




2019

Common Stock:








Shares outstanding (in millions)



247.1





246.2


Book value per share



$

33.29





$

32.73


 

SOURCE Ameren Corporation


These press releases may also interest you

at 10:20
The "Global Functional Milk Market - Outlook & Forecast 2024-2029" report has been added to ResearchAndMarkets.com's offering. The global functional milk market was valued at $27.00 billion in 2023 and is expected to reach a value of $41.74 billion...

at 10:15
Jazz PharmaceuticalsBy Liz HendersonLiz Henderson, Sr. Vice President Technical Operations at Jazz Pharmaceuticals discusses pioneering innovation in oncology and the importance of the manufacturing infrastructure to help achieve drug development...

at 10:10
Allied Market Research published a report, titled, "Real Estate Investment Trust Market by Type (Equity REITs, Mortgage REITs, and Hybrid REITs), and Application (Industrial, Commercial, and Residential): Global Opportunity Analysis and Industry...

at 10:05
Mayfair Gold Corp. ("Mayfair" or the "Company") today announced that it has received a shareholder meeting requisition notice pursuant to section 167 of the Business Corporations Act (British Columbia) (the "Requisition") dated March 27, 2024 from...

at 09:50
The "Thailand Construction Equipment Rental Market - Strategic Assessment & Forecast 2024-2029" report has been added to ResearchAndMarkets.com's offering. The Thailand construction equipment rental market is expected to reach a value of $428.7...

at 09:25
The "Global Immune Health Supplements Market - Outlook & Forecast 2023-2028" report has been added to ResearchAndMarkets.com's offering. The global immune health supplements market was valued at $20.80 billion in 2022 and is expected to reach...



News published on and distributed by: