Wisconsin Energy Corporation (WEC) reported fourth quarter operating earnings of 96 cents, above the Zacks Consensus Estimate of 88 cents and the year-ago earnings of 85 cents. The company posted full-year 2009 earnings of $3.20, beating the Zacks Consensus Estimate of $3.12 and 2008 reported earnings of $3.03.
The robust earnings growth is attributed to the company’s effective cost-control measures and a full year’s earnings from the commercial operation of the newest generating unit at Port Washington.
Net revenue in the quarter declined 11% year over year to $1.07 billion. For the full year 2009, revenues were $4.13 billion, down 7% from $4.43 billion for 2008.
In 2009, the company’s retail electric sales dropped 8.1% year over year, driven by a reduced use of electricity by residential, commercial and industrial customers. Electricity use by residential customers in 2009 was down 3.8% due to an unusually cool summer. Furthermore, commercial and industrial electric sales declined 10% due to the prevalent economic slowdown.
However, the number of customers served by Wisconsin Energy’s utilities continued to grow, rising nearly 6,500 customers or 0.3% over 2008.
The company remained focused on reducing its operating expenses throughout 2009. Total operating expenses for both the quarter and the year declined 15% and 13%, respectively.
In the reported quarter, fuel & purchased power expenses totaled $251.1 million (down 4%), cost of gas sales was $244.1 million (down 36%) and other operating & maintenance expenses were $314.6 million (down 7%). In 2009, fuel & purchased power, cost of gas sales and operating & maintenance expenses were $1.6 billion (down 14%), $912.0 million (down 25%) and $1.3 billion (down 7%), respectively.
As of December 31, 2009, Wisconsin Energy’s cash in hand totaled $20.9 million and long-term debt totaled $3.9 billion. The company’s cash from operating activities at year-end were $628.4 million, compared to $736.4 million at year-end 2008.
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