Electric utility company Allegheny Energy Inc. (AYE), Thursday reported a lower third-quarter profit, hurt by charges and lower results from its generation business, which was affected by weak economy and low power prices. On an adjusted basis, earnings rose from last year and came in above analysts' forecast.
The company's third-quarter net income attributable to the company was $77 million or $0.45 per share, compared with $89 million or $0.52 per share in the same quarter last year.
Adjusted income rose to $100.1 million or $0.59 per share from $91.4 million or $0.54 per share in the prior-year quarter.
The company's adjusted net income for the third quarter of 2009 excluded $19.3 million of pre-tax interest expense related to a debt tender offer and net unrealized pre-tax losses of $18.3 million on economic hedges that do not qualify for hedge accounting. Adjusted net income for the third quarter of 2008 excluded $4 million of unrealized pre-tax losses on economic hedges.
On average, 9 analysts polled by Thomson Reuters expected the company to report earnings of $0.53 per share for the quarter. Analysts' estimates typically exclude special items.
The Greensburg, Pennsylvania-based company's second-quarter net income attributable to Allegheny Energy was $72.61 million or $0.43 per share.
Commenting on the third-quarter results, Paul Evanson, Chairman, President and Chief Executive Officer of Allegheny Energy, stated, "Adjusted earnings grew in the third quarter due to improved results in our regulated delivery and transmission business. However, the weak economy and low power prices reduced earnings in our generation business."
The company's third-quarter operating revenues totaled $793.7 million, down from $849.6 million in the prior-year quarter. Three analysts had a consensus revenue estimate of $952.14 million for the quarter.
Factors benefiting revenues included higher rates in Pennsylvania, increased cost recovery in Virginia, hedging activity, increased revenue from transmission expansion and increased sales to third parties.
Allegheny also said that adjusted operating revenues decreased by $41.6 million, reflecting reduced generation volume, largely due to weak demand and lower power prices, as well as planned outages to complete the installation of scrubbers at the Hatfield's Ferry power plant.
For the second quarter, the company's revenues were $814.74 million.
Delivery and Services posted operating revenues of $783.5 million, up from $692.7 million last year. Net income increased by $27.2 million, driven by higher cost recovery in Virginia, the elimination of an intercompany transfer payment and higher revenues from transmission expansion. These benefits were partially offset by lower retail electricity sales and higher income taxes, primarily due to an increase in pre-tax income.
Generation and Marketing revenues totaled $450 million, lower than the previous year's revenues of $589.3 million. Adjusted net income for the quarter was down by $18.5 million as the results were adversely impacted by lower generation volume and power prices, as well as the scrubber tie-in work at Hatfield's Ferry and the elimination of an intercompany transfer payment, partially offset by higher generation rates in Pennsylvania, the benefit of hedging activity, lower fuel costs and lower income taxes.
For the nine-month period, net income attributable to Allegheny Energy was $283.5 million or $1.67 per share, compared with $379.2 million or $2.23 per share, last year. Operating revenues declined to $2.57 billion from $2.68 billion in the prior-year quarter.
Among others in the sector, Dominion Resources, Inc. (D) is set to announce its third-quarter results on October 30. Analysts are of the view that the company will earn $0.90 per share in the quarter on revenues of $3.94 billion.
Another peer, FirstEnergy Corp. (FE) posted a profit for the third quarter, but more than halved from last year, reflecting weak revenues across all its business segments. The company's third-quarter net income was $230 million, compared with $471 million posted a year earlier. Net income available to FirstEnergy Corp. declined to $234 million or $0.77 per share from $471 million or $1.54 per share in the prior-year quarter. Quarterly revenues declined to $3.41 billion from the previous year's revenue of $3.91 billion.
PPL Corp. (PPL) today reported that its third-quarter net income attributable to the company decreased to $20 million from $203 million last year. Earnings per share available to common share-owners were $0.05, down from $0.54 in the prior-year quarter. Total operating revenues decreased to $1.805 billion from $2.971 billion a year ago.
AYE is trading at $24.2499, down $0.57, on a volume of 3.87 million shares.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.