Strong business operating performance/Improved net available liquidity and strengthened balance sheet/Earnings guidance increased to $3.25 to $3.45 per share in 2009; guidance reaffirmed for 2010 at $3.05 to $3.45 per share
- By Stephen Heiser -
Constellation Energy has reported adjusted earnings of $1.23 per share for the third quarter of 2009, compared with adjusted earnings of $0.76 per share in the same period last year. Adjusted earnings exclude the cumulative effects of changes in accounting principles, discontinued operations and special items (which are defined as significant items that are not related to our ongoing, underlying business or which distort comparability of results). On a generally accepted accounting principles (GAAP) basis, the company reported earnings of $0.69 per share for the third quarter of 2009, compared with a loss of $1.27 per share in the third quarter of 2008. Year-over-year GAAP results were driven primarily by the absence of impairment charges recorded during the third quarter of 2008.
Constellation Energy increased earnings guidance for 2009 to $3.25 to $3.45 per share and reaffirmed its 2010 earnings guidance of $3.05 to $3.45 per share.
“Our businesses delivered strong quarterly results and our nuclear and fossil fleets maintained top-tier reliability and operating performance,” said Mayo A. Shattuck III, chairman, president and chief executive officer. “Based on these strong financial and operational results, and early indications that electricity demand is stabilizing in some markets, we’re increasing our 2009 guidance range by 15 cents to $3.25 to $3.45 per share, as well as reaffirming our 2010 guidance of $3.05 to $3.45 per share.
“Throughout the year, we’ve steadily improved our balance sheet metrics and in the third quarter substantially completed our de-risking efforts,” said Shattuck. “As a result of these activities and improving financial market conditions, our net available liquidity at the close of the quarter was $5.7 billion and we were able to retire a $500 million bond. Through the first three quarters of the year, we’ve reduced our total debt by approximately $2 billion. Fitch and Moody’s recently affirmed our company’s investment-grade credit rating with a stable outlook. All of these developments speak to the significant success we’ve had in strengthening and stabilizing Constellation Energy’s balance sheet.
“We continue to work toward the close of our pending nuclear joint venture with EDF Group (EDF). We took a step closer earlier this month with the approval of the overall transaction by the Nuclear Regulatory Commission, and we are nearing the end of the process in Maryland,” said Shattuck.
“We also received very welcome news this past Tuesday when the Obama administration awarded Baltimore Gas and Electric Company a $200 million stimulus grant for one of the nation’s most ambitious Smart Grid programs. This award, the maximum under the program, will greatly reduce capital cost for installation of two million residential and commercial smart meters, and we are currently before the Maryland Public Service Commission for approval of appropriate cost recovery measures.
“Throughout the year, we have executed well on a broad restructuring that has positioned our company to prudently expand our physical footprint,” said Shattuck. “We believe we’re poised to deliver significant value to shareholders in the years ahead.”
The following tables summarize adjusted earnings per share and earnings per share reported in accordance with GAAP for the company’s business segments and provide a reconciliation to total company reported earnings.