NV Energy cost reductions result in $21.5 million profit
Favorable weather, lower operations and maintenance costs, due in part to the timing of power plant outages, helped boost NV Energy Inc.’s bottom line in the first quarter, the utility reported Friday.
NV Energy reported net income of $21.5 million, or 9 cents per share, compared with $12.2 million, or 5 cents per share, for the first quarter of 2012. Earnings per share beat analyst estimates by 1 cent.
Revenue for the first quarter was $584 million, under estimates of $615.6 million.
“Results for the first quarter were in line with our expectations,” said Michael Yackira, president and CEO of NV Energy. “In the second quarter, we’ll seek regulatory approval to combine our two utilities, make required rate filing for our northern subsidiary and manage other key projects.”
The utility, which serves 90 percent of Nevada’s population, reaffirmed its full year earnings outlook of $1.25 to $1.35 per share, with estimates of $1.30 per share.
The utility company also benefited from decreased interest expense resulting from lower rates and reduced debt levels. The positive factors in the quarter were “partly offset by higher depreciation expense,” the company said.
NV Energy CFO Jonathan Halkyard cited normal weather in the first quarter compared to warmer-than-normal temperatures last year, and said a slight rise in the number of accounts was offset by lower energy use overall.
In a conference call, Halkyard said NV Energy had “reached a period of stable earnings.”
In the first quarter, NV Energy’s profits were helped by a $7.6 million reduction in maintenance costs, and a $9.6 million cut to its energy efficiency programs.
The company also said its NV Energize smart grid project is 95 percent complete with an estimated 1.4 million meters installed statewide. The smart meters are designed to give consumers more control in managing their energy use, the utility said.
The One Nevada Line, or ON Line, project linking northern and southern power systems for the first time is on track to be completed by the end of the year. The line being installed will end near Ely.
Shares of NV Energy gained 1 cent, or 0.05 percent, to close at $21.23, while in after hours trading in the stock was unchanged on the New York Sock Exchange.
Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893. Follow @sierotyfeatures on Twitter.