CON EDISON REPORTS 2022 SECOND QUARTER EARNINGS
Consolidated Edison reported a strong Q2 2022, with net income for common stock rising to $255 million or $0.72 per share, up from $165 million or $0.48 per share a year earlier. Adjusted earnings also increased to $228 million or $0.64 per share compared to $182 million or $0.53 per share in Q2 2021. For the first half of 2022, net income rose to $857 million or $2.42 per share. The company reaffirmed its 2022 adjusted earnings guidance at $4.40 to $4.60 per share, excluding certain accounting impacts related to renewable energy projects.
- Q2 net income increased to $255 million (up 55% YoY).
- Q2 adjusted earnings rose to $228 million (up 25% YoY).
- YTD net income up to $857 million (up 47% YoY).
- Reaffirmed adjusted EPS guidance of $4.40 to $4.60 for 2022.
- Consideration of strategic alternatives for Clean Energy Businesses may introduce uncertainty.
NEW YORK, Aug. 4, 2022 /PRNewswire/ -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported 2022 second quarter net income for common stock of
For the first six months of 2022, net income for common stock was
"We continue to support a reliable transition from fossil fuels to renewables to reduce carbon emissions and deliver a healthy future with opportunities for all," said Timothy P. Cawley, the chairman and chief executive officer of Con Edison. "In progressing through this transition, we continue to remain focused on providing strong, stable returns for investors. Through our partnership with New York City, we've installed publicly available electric vehicle chargers in the five boroughs and we're collaborating with stakeholders to make even more investments in energy efficiency, renewables, the electrification of buildings, transportation, and other clean energy initiatives."
For the year of 2022, 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, 2022 and 2021. See Attachment 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, 2022 compared to the 2021 periods.
The company's 2022 Second Quarter Form 10-Q is being filed with the Securities and Exchange Commission. A second quarter 2022 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," "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, but not limited to, 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 and the performance of employees and contractors 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 or failure by an energy supplier or customer could adversely affect it; it has substantial unfunded pension and other postretirement benefit liabilities; it faces risks related to health epidemics and other outbreaks, including the COVID-19 pandemic; its strategies may not be effective to address changes in the external business environment; and it also faces other risks that are beyond its control, including inflation and supply chain disruptions. 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 the United States of America (GAAP). These non-GAAP financial measures should not be considered as an alternative to net income for common stock or net income per share, respectively, each of which is an indicator of financial performance determined in accordance with GAAP. Adjusted earnings and adjusted earnings per share exclude from net income for common stock and net income per share, respectively, certain items that Con Edison does not consider indicative of its ongoing financial performance such as the impairment loss related to Con Edison's investment in Stagecoach, the loss from the sale of a renewable electric project, the effects of the Clean Energy Businesses' HLBV accounting for tax equity investors in certain renewable and sustainable electric projects and mark-to-market accounting and the related tax impact of such HLBV accounting and mark-to-market accounting on the parent company. Management uses these non-GAAP financial measures to facilitate the analysis of Con Edison's financial performance as compared to its internal budgets and previous financial results and to communicate to investors and others Con Edison's expectations regarding its future earnings and dividends on its common stock. Management believes that these non-GAAP financial measures are also useful and meaningful to investors to facilitate their analysis of Con Edison's financial performance.
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 | ||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||
Reported earnings per share (basic) and net | |||||||||
HLBV effects (pre-tax) | — | (0.14) | (1) | (47) | (0.14) | (0.14) | (49) | (45) | |
Income taxes (a) | — | 0.04 | — | 14 | 0.05 | 0.04 | 15 | 14 | |
HLBV effects (net of tax) | — | (0.10) | (1) | (33) | (0.09) | (0.10) | (34) | (31) | |
Net mark-to-market effects (pre-tax) | (0.11) | 0.08 | (38) | 27 | (0.30) | (0.12) | (106) | (40) | |
Income taxes (b) | 0.03 | (0.02) | 12 | (7) | 0.09 | 0.03 | 33 | 10 | |
Net mark-to-market effects (net of tax) | (0.08) | 0.06 | (26) | 20 | (0.21) | (0.09) | (73) | (30) | |
Loss from sale of a renewable electric project | — | 0.01 | — | 4 | — | 0.01 | — | 4 | |
Income taxes (c) | — | — | — | (1) | — | — | — | (1) | |
Loss from sale of a renewable electric project | — | 0.01 | — | 3 | — | 0.01 | — | 3 | |
Impairment loss related to investment in | — | 0.11 | — | 39 | — | 0.62 | — | 211 | |
Income taxes (d) | — | (0.03) | — | (12) | — | (0.19) | — | (64) | |
Impairment loss related to investment in | — | 0.08 | — | 27 | — | 0.43 | — | 147 | |
Adjusted earnings and adjusted earnings |
(a) | The amount of income taxes was calculated using a combined federal and state income tax rate of |
(b) | The amount of income taxes was calculated using a combined federal and state income 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, 2022 vs. 2021 | ||
Net Income for | Earnings per Share | |
CECONY (a) | ||
Lower health care and other employee benefits costs | ||
Resumption of the billing of late payment charges and other fees to allowed rate plan levels | 13 | 0.04 |
Lower costs related to heat events | 8 | 0.02 |
Higher electric rate base | 7 | 0.02 |
Higher gas rate base | 7 | 0.02 |
Weather impact on steam revenues | 6 | 0.02 |
Higher interest expense | (12) | (0.04) |
Higher stock based compensation costs | (9) | (0.03) |
Dilutive effect of stock issuances | — | (0.01) |
Other | 7 | 0.02 |
Total CECONY | 42 | 0.11 |
O&R (a) | ||
Electric base rate increase | 3 | 0.01 |
Gas base rate increase | 2 | 0.01 |
Other | 3 | — |
Total O&R | 8 | 0.02 |
Clean Energy Businesses | ||
Net mark-to-market effects | 49 | 0.14 |
Lower operation and maintenance expense from engineering, procurement and construction of renewable electric projects | 46 | 0.13 |
Loss from sale of a renewable electric project in 2021 | 3 | 0.01 |
HLBV effects | (35) | (0.10) |
Higher gas purchased for resale | (16) | (0.05) |
Lower revenue from engineering, procurement and construction of renewable electric projects | (11) | (0.03) |
Higher purchased power costs from renewable electric projects | (4) | (0.01) |
Gain from sale of a renewable electric project in 2021 | (4) | (0.01) |
Higher depreciation and amortization expense | (3) | (0.01) |
Dilutive effect of stock issuances | — | (0.01) |
Other | (3) | — |
Total Clean Energy Businesses | 22 | 0.06 |
Con Edison Transmission | ||
Impairment loss related to investment in Stagecoach in 2021 | 28 | 0.08 |
Lower interest expense | 2 | — |
Lower investment income | (10) | (0.03) |
Other | 2 | — |
Total Con Edison Transmission | 22 | 0.05 |
Other, including parent company expenses | ||
Impairment tax benefits related to investment in Stagecoach in 2021 | (1) | — |
Tax impact of net mark-to-market effects (b) | (5) | — |
Tax impact of HLBV tax effects | 3 | — |
Other | (1) | — |
Total Other, including parent company expenses | (4) | — |
Total Reported (GAAP basis) | 90 | 0.24 |
HLBV effects | 32 | 0.10 |
Net mark-to-market effects (b) | (46) | (0.14) |
Impairment loss related to investment in Stagecoach in 2021 | (27) | (0.08) |
Loss from sale of a renewable electric project in 2021 | (3) | (0.01) |
Total Adjusted (Non-GAAP basis) | ||
a. Under the revenue decoupling mechanisms in the Utilities' NY electric and gas rate plans and the weather-normalization clause applicable to their gas | ||
b. Adjusted earnings and adjusted earnings per share for the 2022 period exclude the tax impact on the parent company of the mark-to-market effects ( |
Attachment C | ||
Variation for the Six Months Ended June 30, 2022 vs. 2021 | ||
Net Income for | Earnings per Share | |
CECONY (a) | ||
Higher gas rate base | ||
Resumption of the billing of late payment charges and other fees to allowed rate plan levels | 27 | 0.08 |
Lower health care and other employee benefits costs | 16 | 0.05 |
Higher electric rate base | 13 | 0.04 |
Lower costs related to winter storms and heat events | 10 | 0.03 |
Weather impact on steam revenues | 2 | 0.01 |
Higher interest expense | (23) | (0.07) |
Higher stock based compensation costs | (14) | (0.04) |
Lower incentives earned under the electric and gas earnings adjustment mechanisms (EAMs) | (9) | (0.03) |
Higher payroll taxes | (5) | (0.02) |
Dilutive effect of stock issuances | — | (0.05) |
Other | (1) | (0.01) |
Total CECONY | 52 | 0.10 |
O&R (a) | ||
Electric base rate increase | 5 | 0.01 |
Gas base rate increase | 4 | 0.01 |
Other | 3 | 0.01 |
Total O&R | 12 | 0.03 |
Clean Energy Businesses | ||
Lower operation and maintenance expense from engineering, procurement and construction of renewable electric projects | 63 | 0.18 |
Net mark-to-market effects | 49 | 0.14 |
Higher wholesale revenue | 18 | 0.05 |
Loss from sale of a renewable electric project in 2021 | 3 | 0.01 |
HLBV effects | 3 | — |
Higher gas purchased for resale | (46) | (0.13) |
Higher purchased power costs from renewable electric projects | (4) | (0.01) |
Gain from sale of a renewable electric project in 2021 | (4) | (0.01) |
Higher depreciation and amortization expense | (3) | (0.01) |
Dilutive effect of stock issuances | — | (0.02) |
Other | — | 0.02 |
Total Clean Energy Businesses | 79 | 0.22 |
Con Edison Transmission | ||
Impairment loss related to investment in Stagecoach in 2021 | 153 | 0.44 |
Lower interest expense | 5 | 0.01 |
Lower investment income | (15) | (0.04) |
Total Con Edison Transmission | 143 | 0.41 |
Other, including parent company expenses | ||
Impairment tax benefits related to investment in Stagecoach in 2021 | (6) | (0.01) |
Tax impact of net mark-to-market effects (b) | (4) | (0.01) |
Tax impacts of HLBV effects | — | (0.01) |
Other | (3) | (0.01) |
Total Other, including parent company expenses | (13) | (0.04) |
Total Reported (GAAP basis) | 273 | 0.72 |
Impairment tax benefits related to investment in Stagecoach in 2021 | (147) | (0.43) |
Net mark-to-market effects (b) | (43) | (0.12) |
HLBV effects | (3) | 0.01 |
Loss from sale of a renewable electric project in 2021 | (3) | (0.01) |
Total Adjusted (Non-GAAP basis) | ||
a. Under the revenue decoupling mechanisms in the Utilities' NY electric and gas rate plans and the weather-normalization clause applicable to their gas | ||
b. Adjusted earnings and adjusted earnings per share for the 2022 period exclude the tax impact on the parent company of the mark-to-market effects of the |
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SOURCE Consolidated Edison, Inc.
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