Infrastructure
Power Generation Results Mixed (D, XEL, NRG, EXC, RRI)
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Three large electric utilities reported earnings this morning, and the results are could be better, but they could also be worse. Dominion Resources, Inc. (NYSE:D) and NRG Energy, Inc. (NYSE:NRG) were up following their reports.
The largest of the three, Dominion reported GAAP EPS of $0.42 on revenue of $4.778 billion. Operating earnings, which excludes a $272 million impairment charge on Dominion’s oil and gas properties, came in at $0.97/share. Analysts were expecting EPS of $0.88 on revenue of $4.12 billion.
NRG Energy, Inc. (NYSE:NRG) reported EPS of $0.70, beating estimates of $0.45 handily. Revenue of $1.658 billion also beat estimates of $1.16 billion. The company noted that it had spent $5 million fighting off the takeover bid from Exelon Corp. (NYSE:EXC), and $12 million on its pending acquisition of the Texas retail business of Reliant Energy Inc. (NYSE:RRI). Excluding mark-to-market gains of $271 million, NRG’s EBITDA was $477 million for the first quarter of 2009, compared with EBITDA of $525 in the same quarter last year.
Xcel Energy Inc. (NYSE:XEL) reported GAAP EPS of $0.38 on revenues of $2.7 billion. Analysts had been expecting EPS of $0.37 on revenues of $3.09 billion. The company’s electric margins improved from $885 million in the first quarter of 2008 to $962 million for the first quarter of 2009, primarily on the basis of lower purchased fuel and power costs. Retail rate increases contributed $45 million of the $77 million difference.
Dominion provided guidance of EPS of $0.61-$0.66 for the 2009 second quarter. Analysts had been estimating EPS of $0.59 for the second quarter.
NRG guided EBITDA for fiscal year 2009 to $2.175 billion, lower than analysts’ average estimates of $2.39 billion. The company noted “the very weak market” in the last portion of the first quarter.
Xcel reaffirmed previous EPS guidance of $1.45-$1.55 for the full fiscal year. Analysts are expecting EPS of $1.51.
Dominion shares are trading up about 2% in pre-market trading this morning. NRG shares are up nearly 5%, and Xcel is unchanged.
Paul Ausick
April 30, 2009
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