– Second Quarter Diluted Earnings Per Share were $0.98 in 2020 vs. $0.72 in 2019
– Guidance Range for 2020 Reaffirmed at $3.40 to $3.60 Per Diluted Share
ST. LOUIS, MO (STL.News) Ameren Corporation (NYSE: AEE) today announced second quarter 2020 net income attributable to common shareholders of $243 million, or $0.98 per diluted share, compared to second quarter 2019 net income attributable to common shareholders of $179 million, or $0.72 per diluted share.
Second quarter 2020 results reflected earnings on increased infrastructure investments made across all business segments driven by solid execution of the company’s strategy. The earnings improvement also resulted from lower Ameren Missouri operations and maintenance expenses due to the absence of a refueling and maintenance outage at the Callaway Energy Center compared to the year-ago period when there was such an outage, as well as disciplined cost management. Earnings at Ameren Missouri were also positively impacted by new electric service rates effective April 1, 2020 driven, in part, by earnings on increased infrastructure investments. In addition, Ameren Missouri experienced higher earnings from electric retail sales due to near-normal temperatures in the second quarter of 2020 compared to milder-than-normal temperatures in the year-ago period. This benefit offset lower electric retail sales due to the impacts of COVID-19. Finally, earnings increased at Ameren Transmission resulting from the impact of the May 2020 Federal Energy Regulatory Commission (FERC) order addressing the Midcontinent Independent System Operator (MISO) allowed base return on equity. These favorable factors were partially offset by a lower allowed return on equity at Ameren Illinois Electric Distribution.
“We continue to effectively manage through an unprecedented time in our country’s and company’s history due to COVID-19. We remain relentlessly focused on the safety of our co-workers, customers and communities, as well as delivering safe, reliable and affordable electric and natural gas services,” said Warner L. Baxter, chairman, president and chief executive officer of Ameren Corporation. “While COVID-19 has presented certain financial challenges, we are executing on all elements of our strategy, including significant investment in energy infrastructure and disciplined cost management in each of our business segments. As a result, we remain on track to deliver within our 2020 earnings per share guidance range of $3.40 to $3.60.”
Ameren recorded net income attributable to common shareholders for the six months ended June 30, 2020, of $389 million, or $1.57 per diluted share, compared to net income attributable to common shareholders for the six months ended June 30, 2019, of $370 million, or $1.50 per diluted share.
The year-over-year six month earnings comparison benefited from increased infrastructure investments made across all business segments. Earnings increased at Ameren Missouri due to the absence of a nuclear refueling and maintenance outage at the Callaway Energy Center compared to the year-ago period when there was such an outage and from new electric service rates effective April 1, 2020. Ameren Transmission earnings also benefited from the impact of the May 2020 FERC order addressing the MISO allowed base return on equity. These favorable factors were partially offset by lower Ameren Missouri electric retail sales, due in part to the impacts of COVID-19, and the absence of energy efficiency performance incentives. Ameren Illinois Electric Distribution earnings also decreased due to a lower allowed return on equity compared to the year-ago period. Finally, Ameren Missouri’s operations and maintenance expenses were comparable as disciplined cost management offset changes in the cash surrender value of company-owned life insurance driven by unfavorable market returns.
NOTE: this is NOT the complete release.