American Electric Power's 2Q Net Income Dips on Mild Weather, Inflation Impact

By Rob Curran

American Electric Power's second-quarter earnings dipped as mild weather and financial stress from inflation weighed on electricity demand in several states.

The Columbus, Ohio, utility's earnings fell to $521.2 million, or $1.01 a share, from $524.5 million, or $1.02 a share, a year earlier. Excluding certain items, AEP logged second-quarter earnings of $1.13 a share.

Second-quarter revenue fell 0.2% to $4.4 billion.

"Residential and industrial load have slowed down as expected due to the impacts of inflation and rising interest rates on our customers," said President and Chief Executive Julie Sloat. "At the same time, we've had a significant increase in commercial load, which has grown almost 8 percent year over year in each of the last two quarters."

AEP delivers electricity to customers in several midwestern and southern states including Ohio, Indiana, Kentucky and Texas, and operates the nation's largest transmission system by miles of lines.

AEP reiterated its forecast for 2023 operating earnings, targeting a range between $5.19 and $5.39 a share.

Write to Rob Curran at [e-mail]

(END) Dow Jones Newswires

July 27, 2023 08:02 ET (12:02 GMT)

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