By Andy Milone
Newark-based Public Service Enterprise Group (PSEG) announced its 2017 second quarter results this past Friday — recording a Q2 Net Income of $109 million or $0.22 per share, which is a drop from its 2016 Q2 Net Income of $187 million or $0.37 per share. The retirement of its Hudson and Mercer coal/gas generating stations led to accelerated depreciation and had an impact on Friday’s Net Income results, the diversified electric services company said in its report to investors.
The complementary, but not alternative, non-GAAP Operated Earnings beat out Reuters and Dow Jones’ estimates of $0.58 per share and recorded earnings of $0.62 per share — rising 9% from 2016’s Q2 numbers of $0.57 per share. These non-GAAP Operated Earnings exclude the impact of losses such as the accounting and material one-time items like the Hudson and Mercer retirements.
These earnings reaffirm PSEG as on track for its 2017 year goal in non-GAAP Operating Earnings: $2.80 – $3.00 per share.
“PSEG delivered solid results for the second quarter and has had a good first half, putting us on a solid path to meeting our full year objectives,” said Ralph Izzo, Chairman, President and Chief Executive Officer.
In June, the coal/gas generating stations closed due to low prices on natural gas and not having enough justification to invest in plant upgrades in order to meet new reliability standards, Bill Levis, president and chief operating officer of PSEG Power, said.
Subsidiary PSE&G reported a Net Income of $208 million, $0.41 per share, which is a 6% increase from the Net Income of $179 million, $0.35 per share, from the 2016 Q2.
Improved second quarter Net Income comparisons for PSE&G were a result of NJ economic conditions, favorable weather, and infrastructure improvement with its ongoing 2017 approximate $3.4 billion investment in transmission and distribution upgrades.
Its Energy Strong and Gas System Modernization Program will be a continued and accelerated focus — with $2.7 billion ($540 million per year) proposed for the next five years (starting in 2019) to replace out of date infrastructure like iron and unprotected steel mains in the long term.
“PSE&G’s focus remains on providing on customer’s with what they want in terms of enhanced reliability, resiliency and green energy while keeping bills affordable,” said Izzo.
The Smart Electric Power Alliance recently named Public Service Electric and Gas Company (PSE&G) its 2017 Investor Owned Utility of the Year.
Other subsidiaries, PSEG Power and PSEG Enterprise/Other, reported Net Losses of $97 million and $2 million in Q2, respectively.