Exelon Corporation (EXC) reported fourth-quarter and full-year 2009 earnings per share (EPS) of 92 cents and $4.12, respectively, above the Zacks Consensus Estimate of 85 cents and $4.04. However, it fell short of the year-ago figure of $1.07 for the fourth quarter of 2008 and $4.20 for full-year 2008.
The company’s full-year earnings are also above the high-end of its guidance range of $4.00-$4.10 per share. On a year-over-year basis, the fall in EPS was primarily due to lower energy gross margins, reduced load at ComEd and PECO, and higher depreciation and amortization expense.
On the revenue front, operating revenue fell to $4.1 billion in the fourth quarter and $17.4 billion for the full-year 2009, from $4.5 billion and $19.1 billion in the respective year-ago periods.
Generation’s average realized margin on all electric sales, including sales to affiliates and excluding trading activity, was $38.36 per MWh in the fourth quarter of 2009, compared with $38.28 per MWh in the fourth quarter of 2008. Its nuclear plants achieved an 89.8% capacity factor for the reported quarter compared with 93.7% in the year-ago quarter. Output from the nuclear fleet fell to 33,609 gigawatt-hours (GWh) from 34,887 GWh in the year-ago quarter. Output fell due to a higher number of refueling outage days, which rose to 136 days from 80 in the year-ago quarter.
Non-refueling outage days rose by one day to 23 days from 22 in the year-ago quarter. In the reported quarter, fossil fleet commercial availability also fell slightly to 90.2% from 95.1% in the year-ago quarter, primarily reflecting the impact of extended maintenance outage at Handley Unit 5 from late July to early December. The equivalent availability factor for the hydroelectric facilities was 99.6% compared with 98.9% in the year-ago quarter.
For the full-year 2009, the company’s nuclear plants achieved an average capacity factor of 93.6% versus 93.9% for 2008. The average annual capacity factor for the Exelon-operated plants during the five years ended 2009 was 93.9%.
Heating degree-days in the ComEd service territory during the fourth quarter were down 7.8% relative to the same period in 2008, and were 0.6% below normal. ComEd’s total retail kilowatt-hour (kWh) deliveries decreased 3.8% quarter over quarter with declines in deliveries to all major customer classes, primarily driven by the impact of current economic and unfavorable weather conditions. In addition, the number of residential customers being served in the ComEd region decreased 0.5% from the fourth quarter of 2008. Weather-normalized retail kWh deliveries decreased 1.6% from the year-ago quarter.
Heating degree-days in the PECO service territory were down 5.5% from 2008, and were 4.1% below normal. Total retail kWh deliveries decreased 2.3% from last year, reflecting a decline in deliveries across all customer classes, primarily driven by the impact of current economic conditions and unfavorable weather conditions. The number of residential electric customers being served in the PECO region decreased 0.4% from the year ago quarter.
On the retail gas side, deliveries in the fourth quarter were decreased 7.7% from last year. Weather-normalized retail kWh deliveries decreased 1.3% from last year, primarily reflecting decreased small and large commercial and industrial deliveries.
Exelon’s hedging program involves the hedging of commodity risk for Exelon’s expected generation, typically on a ratable basis over a three-year period. The proportion of expected generation hedged as of December 31, 2009 is 91%-94% for 2010, 69%-72% for 2011 and 37%-40% for 2012.
Exelon reaffirmed its guidance range for 2010 operating earnings to $3.60 – $4.00 per share. This is in line with the Zacks Consensus Estimate of $3.79 per share for fiscal 2009.
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