Consolidated Edison Posts Lower Profit, Backs 2016 Adjusted EPS View

   By Josh Beckerman 
 

Consolidated Edison Inc. (ED) said net income fell 16% in the first quarter as it reaffirmed its full-year outlook for adjusted earnings per share.

The company's Consolidated Edison Co. of New York utility unit has about 3.3 million electric-service customers. Its other businesses include Orange and Rockland Utilities Inc. and competitive-energy operations.

Warm weather hurt the company's steam revenue during the quarter, although a news release didn't include specific revenue figures. Changes in rate plans helped earnings for the quarter.

The company reiterated its 2016 guidance for earnings excluding items of $3.85 to $4.05 per basic share.

Last month, Consolidated Edison and Crestwood Equity Partners LP (CEQP) announced a joint venture to own and develop Crestwood's existing natural gas pipeline and storage business in northern Pennsylvania and southern New York. The deal calls for Con Ed to buy a 50% stake in a new entity called Stagecoach Gas Services LLC for about $975 million.

On April 21, Moody's Investors Service affirmed its ratings for the company. The rating firm said midstream investments have a higher risk than utility assets but add diversity, and predicted the Crestwood assets would provide stable and consistent cash flow.

In January, the Con Edison utility filed rate proposals intended to take effect in January 2017. The electric rate proposal would be the first increase in overall delivery rates since April 2012.

For the quarter ended March 31, Consolidated Edison Inc. earned $310 million, or $1.05 a share, compared with $370 million, or $1.26 per basic share, in 2015. Earnings excluding items fell to $1.18 a share from $1.25. Analysts polled by Thomson Reuters expected $1.21.

In after-hours trading, shares fell 14 cents to $75.44.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

May 05, 2016 22:13 ET (02:13 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.