•  
Siemens: RuggedCom RSG2488 New Timing CapabilitiesAdvertisement
BACK SEND PRINT

CenterPoint Energy Reports Fourth Quarter And Full Year 2013 Earnings



February 26, 2014

CenterPoint Energy, Inc. (NYSE: CNP) reported net income of $113 million, or $0.26 per diluted share, for the fourth quarter of 2013, compared to $134 million, or $0.31 per diluted share the previous year. Operating income for the fourth quarter of 2013 was $211 million. Following the May 1, 2013, formation of Enable Midstream Partners, CenterPoint Energy reports its investment in midstream operations as equity income rather than operating income. As a result, operating income for the fourth quarter of 2013 is not comparable to prior results.

For the year ended Dec. 31, 2013, net income was $311 million, or $0.72 per diluted share. The results for the year include two unusual items related to the formation of the midstream partnership: (i) a $225 million non-cash deferred tax charge and (ii) $13 million of pre-tax partnership formation expenses. Excluding the effects of these unusual items, net income for 2013 would have been $544 million, or $1.26 per diluted share.

For the year ended Dec. 31, 2012, net income was $417 million, or $0.97 per diluted share. The results for the year include two unusual items recorded in the third quarter: (i) a $252 million non-cash goodwill impairment charge associated with the energy services business, which has no tax effect, and (ii) a $136 million gain ($88 million after-tax) associated with the acquisition of an additional 50 percent interest in a gathering and processing joint venture. Excluding the effects of these unusual items, net income for 2012 would have been $581 million, or $1.35 per diluted share.

Operating income for the year ended Dec. 31, 2013, was $1.01 billion. As discussed above, with the formation of Enable Midstream Partners, CenterPoint Energy's operating income for 2013 is not comparable to prior results.

"CenterPoint Energy's 2013 financial results highlight the strength of our diversified energy delivery business portfolio," said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy. "Our natural gas distribution business, which had its strongest annual performance, more than offset the impact of a return to more normal weather at our electric utility. In addition, our joint venture investment, Enable Midstream Partners, continues to advance toward an IPO, and we are excited about its value creation potential for our shareholders. As we look to 2014, we are confident in our ability to provide stable earnings growth from our regulated businesses, coupled with additional growth from our Enable Midstream investment."

Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of $119 million for the fourth quarter of 2013, consisting of $87 million from the regulated electric transmission & distribution utility operations (TDU) and $32 million related to securitization bonds. Operating income for the fourth quarter of 2012 was $99 million, consisting of $64 million from the TDU and $35 million related to securitization bonds.

Fourth-quarter operating income for the TDU benefited from higher revenues associated with right-of-way easement grants, continued strong customer growth, increased usage in part due to colder weather and higher net transmission-related revenues. These increases were partially offset by higher depreciation and property taxes.

Operating income for the year ended Dec. 31, 2013, was $607 million, consisting of $474 million from the TDU and $133 million related to securitization bonds. Operating income for the same period of 2012 was $639 million, consisting of $492 million from the TDU and $147 million related to securitization bonds.

Full-year 2013 operating income for the TDU benefited from revenue increases associated with the growth of more than 44,000 metered customers, higher net transmission related revenues and slightly higher revenues associated with right-of-way easement grants. These increases were offset by lower revenues due to a return to more normal weather, as well as from higher operation and maintenance expenses, depreciation and property taxes.

Natural Gas Distribution

The natural gas distribution segment reported operating income of $94 million for the fourth quarter of 2013, compared to $91 million for the same period of 2012. Operating income benefited from rate changes and increased economic activity across its footprint, including customer growth, which were partially offset by an increase in bad-debt expenses, depreciation and property taxes.

Operating income for the year ended Dec. 31, 2013, was $263 million, compared to $226 million for the same period of 2012. Operating income benefited from colder weather compared to the previous year, as well as rate changes and increased economic activity across its footprint, including growth of approximately 33,000 customers. Increases in operation and maintenance expenses, including bad debt expense, as well as depreciation and property taxes partially offset these improvements.

Energy Services

The energy services segment reported operating income of $1 million for the fourth quarter of 2013, compared to $12 million for the same period of 2012. Fourth quarter operating income for 2013 included mark-to-market accounting charges of $9 million, compared to a charge of $1 million for the same period of 2012.

Operating income for the year ended Dec. 31, 2013, was $13 million, compared to an operating loss of $250 million for the same period of 2012. Excluding a third-quarter 2012 goodwill impairment charge, operating income for the year ended Dec. 31, 2012, would have been $2 million. Operating income for the year ended Dec. 31, 2013, included mark-to-market accounting charges of $2 million, compared to a charge of $16 million for the same period of 2012. Increased customer count and sales volumes in 2013 were more than offset by lower unit margins in competitive markets and the 2012 sale of non-strategic assets.

Other Operations

The other operations segment reported an operating loss of $3 million for the fourth quarter of 2013, compared to no income for the same period of 2012. The decline is primarily related to expenses associated with higher property taxes and depreciation. For the year ended Dec. 31, 2013, this segment reported an operating loss of $18 million, compared to operating income of $2 million for the same period of 2012. The decline is primarily related to the one-time expenses associated with the formation of Enable Midstream Partners as well as higher property taxes.

Interstate Pipelines/ Field Services

For the year ended Dec. 31, 2013, and prior to the formation of Enable Midstream Partners, the interstate pipelines segment reported operating income of $72 million and equity earnings of $7 million from its 50 percent interest in the Southeast Supply Header (SESH) and the field services segment reported operating income of $73 million.

Midstream Investments

For the year ended Dec. 31, 2013, CenterPoint Energy reported equity income of $173 million from its interest in Enable Midstream Partners and equity income of $8 million from its retained interest in SESH. Although these results cannot be readily compared to 2012, Enable Midstream's gathering and processing operations performed in line with expectations while transportation and storage operations continued to be adversely affected by challenging market conditions.

Dividend Declaration

On Jan. 20, 2014, CenterPoint Energy's board of directors declared a regular quarterly cash dividend of $0.2375 per share of common stock, payable on March 10, 2014, to shareholders of record as of the close of business on Feb. 14, 2014. This represents a 14.5 percent increase from the previous quarterly dividend of $0.2075, and if annualized, would equate to $0.95 per share.

Click here to read the full press release.

For more information :

Organization:
CenterPoint Energy, Inc.
Address:
1111 Louisiana St
Houston, Texas
United States, 77210-4567
www.centerpointenergy.com


Link http://www.electricenergyonline.com/detail_news.php?ID=471979
BACK SEND PRINT
Most consulted news

Contact us

Jaguar Expo Inc
1160 rue Levis, Suite 100
Terrebonne (Quebec) J6W 5S6

Tel.: 450-471-0796
Toll free: 888-332-3749
Fax: 450-471-5443 . 888-243-4562

info@electricenergyonline.com
www.electricenergyonline.com

  Press

  Jobs

  Events

  Subscription

  News

  Magazine

  News on your smartphone

© 2014, Jaguar Media inc. All rights reserved. 1996-2014