Power provider Progress Energy Inc. (PGN) reported first quarter 2010 earnings that were ahead of the Zacks Consensus Estimate and the year-ago results. Earnings were driven by favorable weather conditions and the net impact from the repowered Bartow Plant, partially offset by increased O&M and income tax expense. Progress’ earnings per share in the quarter were 75 cents, above the Zacks Consensus Estimate and the year-ago earnings of 66 cents.
Segment Results
Segment-wise, ongoing earnings at Progress Energy Carolinas increased 10.6% to 52 cents per share, and earnings at Progress Energy Florida increased 21% to 40 cents per share. Reported first-quarter ongoing after-tax expenses were 17 cents per share, compared with after-tax expenses of 14 cents per share for the same period last year.
Energy Sales and Supply
Total electricity sales in the quarter were 25.5 billion kilowatt hours (KWh), up 6.8% from 23.8 billion KWh last year. Progress Energy Carolinas’ electricity sales totaled 15.3 billion KWh (up 6.1%), while Progress Energy Florida sold 10.2 billion KWh (up 8.1%) of electricity in the quarter.
Total energy supply in the quarter was 26.8 billion KWh (up 6.7%), with Progress Energy Carolinas contributing 16.0 billion KWh (60% of total supply) and Progress Energy Florida contributing 10.8 billion KWh (40% of total supply).
Operating Revenues
Operating revenues in the quarter totaled $2,535 million, up 3.8% from $2,442 million reported in the year-ago quarter. Progress Energy Carolinas and Progress Energy Florida contributed $1,263 million (up 7.2%) and $1,270 million (up 0.6%), respectively, to the quarter’s revenue.
2010 Guidance
Following its robust operational and financial performance in the quarter, Progress has maintained its 2010 earnings guidance range of $2.85 to $3.05 per share.
Read the full analyst report on “PGN”
Zacks Investment Research
