American Electric Power Company, Inc. Q2 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • AEP reported Q2 2020 operating earnings of $1.08 per share, up from $1.00 in Q2 2019. GAAP earnings were $1.05 per share versus $0.93 last year.
  • Year-to-date operating earnings were $2.10 per share, slightly below $2.19 YTD 2019 due to unfavorable winter weather and weaker industrial/commercial demand.
  • The company reaffirmed full-year 2020 operating EPS guidance of $4.25 to $4.45 and maintained its long-term 5% to 7% EPS growth outlook.
  • COVID-19 continued to shift load patterns: Residential load rose significantly, while commercial and industrial (C&I) segments had substantial declines.
  • AEP increased its five-year capital plan from $33 billion to $35 billion, largely due to the North Central Wind project, and reinstated $100 million of the $500 million previously deferred 2020 CapEx.

Financial & Operational Highlights

  • Strong operating cost management helped offset lower revenues. AEP is on track to reduce 2020 O&M by $100 million more than originally planned.
  • Load:
    • Q2 normalized load decreased 5.9% (consistent with AEP's revised forecast).
    • Residential load rose 6.2% in Q2; YTD up 1.9%.
    • Commercial load declined 10.1% in Q2; YTD down 5%.
    • Industrial load fell 12.4% in Q2; YTD down 6.6%.
  • July showed improvement: normalized load down 2.4% vs. down 4.8% in June.

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Operator: Ladies and gentlemen, thank you very much for standing by, and welcome to the American Electric Power Second Quarter 2020 Earnings Call. At this time, all lines are in a listen-only mode. Later we will conduct a question-and-answer session. Instructions will be given to you at that time. [Operator Instructions] And as a reminder, today’s conference call is being recorded. I would now like to turn the conference over to Darcy Reese. Please go ahead. Darcy Reese: Thank you, Cynthia. Good morning everyone and welcome to the second quarter 2020 earnings call for American Electric Power. We appreciate you taking the time to join us today. Our earnings release, presentation slides, and related financial information are available on our website at aep.com. Today we will be making forward-looking statements during the call. There are many factors that may cause future results to differ materially from these statements. Please refer to our SEC filings for a discussion of these factors. Joining me this morning for opening remarks are Nick Akins, our Chairman, President and Chief Executive Officer, and Brian Tierney, our Chief Financial Officer. We will take your questions following their remarks. I will now turn the call over to Nick. Nick Akins: Okay. Thanks Darcy. And welcome, everyone to American Electric Power's second quarter 2020 earnings call. While, we continue to see the effects of COVID-19 pandemic, AEP has responded well with not only ensuring the safety of our emp

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional