Exelon Profit Falls on Nuclear Power Plant Closures
October 26 2016 - 10:20AM
Dow Jones News
Exelon Corp. said its third-quarter earnings fell 22%, as the
energy company saw decreased capacity prices and more write-downs
related to the decommissioning of nuclear plants.
Still, the company, which owns utilities serving Chicago,
Philadelphia and Baltimore as well as many power plants, raised its
full-year earnings guidance to $2.75 a share from $2.55.
Low wholesale electricity prices have been pressuring owners of
older power plants—especially nuclear facilities, many of which are
threatened with closure. This year prices for wholesale electricity
recently hit a 15-year low and experts expect them to rise too
slowly to help generators much. Fifteen to 20 nuclear reactors are
considered at risk of premature closure in the next five to 10
years, according to the Nuclear Energy Institute, a trade
group.
In August, Exelon Generation agreed to buy a nuclear power plant
in New York that Entergy Corp. had slated to close for about $110
million. The purchase is pending regulatory approval.
Over all for the quarter, the Chicago-based company reported a
profit of $490 million, or 53 cents a share, down from $629
million, or 69 cents, a year earlier. Excluding certain items,
earnings rose to 91 cents from 83 cents.
Revenue jumped 22% to $9 billion. On an adjusted basis, revenue
was $8.84 billion.
Analysts polled by Thomson Reuters had forecast earnings of 78
cents on $7.79 billion in revenue.
Shares, inactive premarket, closed at $32.90 and have fallen 11%
in the past three months.
Write to Imani Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
October 26, 2016 10:05 ET (14:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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