Exelon profit rises on increased nuclear power output
COLUMBUS, Ohio -- Exelon on Thursday said its first quarter earnings rose 23 percent, driven by increased output at its nuclear operations and higher rates.
The company reiterated its profit outlook of $4 to $4.30 per share for the year and in premarket trading, company shares jumped nearly 6 percent, or $2.68, to $48.20.
Chicago-based Exelon Corp., the largest U.S. nuclear power generator, said it made $712 million, or $1.08 per share, compared with profit of $581 million, or 88 cents per share, in the year-ago quarter. Discounting charges, Exelon said it made $797 million, or $1.20 per share, compared with $620 million, or 93 cents per share, in the same period last year.
Revenue rose to $4.8 billion in the quarter from $4.6 billion a year ago.
Analysts surveyed by Thomson Reuters expected Exelon to post profit of $1.13 a share on revenue of $4.6 billion. Those estimates typically exclude one-time charges.
Exelon shares rose $2.68, or nearly 6 percent, to $48.20 in premarket trading. The shares have traded between $38.41 and $92.13 in the past year.
"Our strong first quarter results are keeping 2009 earnings on track to meet our estimates in spite of the difficult economic environment," John Rowe, Exelon's chairman and CEO, said in a statement.
Exelon said its first quarter profit was helped by higher margins at its Exelon Generation Co. where increased nuclear output reflected fewer refueling day outages and favorable market conditions that were offset by higher nuclear fuel costs.
The company also benefited from higher distribution revenue from increase rates at Commonwealth Edison Co. in Illinois and PECO Energy Co. in Pennsylvania.
Exelon is attempting to take over Princeton, New Jersey-based NRG Energy in a $5 billion deal that would create the largest U.S. power generator. The combined company would be big enough to power nearly 45 million homes.
NRG has said it is open to discussing a deal, but that Exelon's offer of .485 shares of Exelon for each share of NRG is too low.
Despite the rejection, Exelon is pushing a slate of directors to get elected to NRG's board and is moving ahead with regulatory approval.
On top of its annual earnings outlook, Exelon said that it expects earnings of 95 cents to $1.05 in the second quarter. The results assume normal weather for the year and do not include one-time charges.
Wall Street is looking for profit of $1.01 per share in the second quarter and $4.13 for the year.
Exelon, with $19 billion in annual revenue, distributes electricity to approximately 5.4 million customers in northern Illinois and southeastern Pennsylvania and natural gas to approximately 485,000 customers in the Philadelphia area.