AmericanElectric Power Co. Inc. on April 28 reported first-quarter 2016operating earnings of $501.2 million, or $1.02 per share, 2 cents per sharebelow the S&P Global Market Intelligence normalized EPS consensus estimateof $1.04. AEP reported operating earnings of $624.8 million, or $1.28 pershare, in the first quarter of 2015.
"The first three months of 2016 were vastly differentfrom a year ago. The unseasonably mild temperatures reduced earnings by 12 centscompared with last year. The warm winter and low natural gas prices alsoresulted in significantly lower power prices and sales volumes compared withthe first quarter of 2015," AEP Chairman, President and CEO Nicholas Akinssaid in a statement.
Despite the weaker quarter, AEP reaffirmed its 2016operating earnings guidance range of $3.60 to $3.80 per share.
AEP's generation and marketing segment saw the largest dropin first-quarter 2016 operating earnings: $112.3 million year over year to$70.7 million, followed by the vertically integrated utilities segment down$21.7 million year over year to $277.6 million.
The vertically integrated utilities segment includesAEP Generating Co.,Appalachian PowerCo., Indiana MichiganPower Co., KentuckyPower Co., KingsportPower Co., PublicService Co. of Oklahoma, Southwestern Electric Power Co. and
The transmission and distribution utilities business segmentreported a $10.8 million year-over-year increase in first-quarter 2016operating earnings to $108.0 million. AEP Transmission Holdco operatingearnings rose $8.1 million year over year to $43.9 million.
The transmission and distribution utilities business segmentincludes Ohio PowerCo., AEP TexasCentral Co. and AEPTexas North Co.
AEP's first-quarter 2016 revenues were down to $4.0 billionfrom $4.6 billion in the same quarter of 2015, results showed. Analysts hadexpected AEP to generate first-quarter revenues of $4.49 billion.
AEP will discuss its first-quarter results in a conferencecall scheduled for 9 a.m. ET on April 28.