Power company Entergy said Wednesday earnings rose for the first quarter of 2018 with assistance from the federal tax break and better weather. The numbers in the company’s nuclear power-focused Wholesale Commodities segment also improved, though it remained a drag on the overall business.
Entergy reported consolidated earnings of $133 million ($0.73 per share) on an as-reported basis and $211 million ($1.16 per share) on an operational basis. Those numbers were up across the board year over year from $83 million ($0.46 per share) on an as-reported basis and $178 million ($0.99) on an operational basis.
Along with the reduced federal income tax rate, “favorable weather” provided a $0.09 per-share boost, the company said in its earnings press release. However, Entergy took a $0.04 hit from implementation of a January 2016 accounting standards update from the Financial Accounting Standards Board, “which now requires the mark-to-market of equity involvements in the nuclear decommissioning trust funds” at Entergy Wholesale Commodities.
Entergy Wholesale Commodities plans by 2022 to close all three of its nuclear power plants: Indian Point in New York state; Palisades in Michigan; and Pilgrim in Massachusetts. In the latest quarter, the business lost $18 million ($0.10 per share) on an as-reported basis and earned $60 million ($0.33 per share) on an operational basis. Those numbers compare to a first-quarter loss of $28 million ($0.16 per share) on an as-reported basis and earnings of $67 million ($0.37 per share) on an operational basis.
Selling the FitzPatrick nuclear power plant in New York to Exelon last year had an impact on several line items, according to the press release: “Excluding FitzPatrick, quarterly earnings reflected lower other income, primarily due to losses on decommissioning trust funds previously classified as other comprehensive income on the balance sheet, now recorded to the income statement.”
For the year, Entergy expects to earn $6.25 to $6.85 per share.