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AEP Reports Second Quarter Earnings; Reaffirms Full-Year Earnings Guidance

by on August 1, 2019

American Electric Power today reported second-quarter 2019 earnings, prepared in accordance with Generally Accepted Accounting Principles (GAAP), of $461 million or $0.93 per share, compared with $528 million or $1.07 per share in second quarter 2018. Operating earnings for second quarter 2019 were $494 million or $1.00 per share, compared with operating earnings of $498 million or $1.01 per share in second quarter 2018. Operating earnings is a non-GAAP measure representing GAAP earnings excluding special items. The difference between 2019 GAAP earnings and operating earnings for the quarter and year-to-date was driven in part by certain one-time transactional costs related to the acquisition of assets from Sempra Renewables, as well as severance and related charges.

A full reconciliation of GAAP earnings to operating earnings for the quarter and year-to-date is included in the full news release on AEP.com.

“We continue to achieve solid earnings results based on our investments to enhance the resiliency and reliability of service we provide for our customers,” said Nick Akins, AEP chairman, president and chief executive officer. “Our performance in the second quarter was positive, even without the boost from weather that we had last year. Weather was back to normal this spring and has been much more moderate this year than in the first half of 2018.        

“Our Transmission Holding Co. business continues to grow as we make critical investments to replace aging equipment and ensure that we maintain a robust, resilient grid. AEP Transmission Holding Co. contributed 31 cents per share for the quarter, an increase of 10 cents per share from the same period last year. Net plant for AEP Transmission Holding Co. has grown by $1.4 billion, a 19% increase, since June 2018,” Akins said.

“We also are moving forward with the clean energy investments that our customers have told us they expect from their energy provider. We filed last week for regulatory approval to acquire and own 1,485 megawatts of new wind energy that will provide significant savings benefits for our customers in Arkansas, Louisiana, Oklahoma and Texas. We also recently completed the purchase of 227 MW of the Santa Rita East Wind Project near San Angelo, Texas. AEP now has nearly 5,300 MW of regulated and contracted renewable generation in its portfolio, including 2,258 MW that we own and another 3,015 MW through long-term power purchase agreements.

“Our performance so far this year is on track with our expectations, even though we are seeing lower demand across all customer classes primarily due to trade tariffs and the strong U.S. dollar. Despite these economic headwinds, we continue to grow the business and remain confident in reaffirming our 2019 operating earnings guidance of $4.00 to $4.20 per share,” Akins said.

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