Public ServiceEnterprise Group Inc. reported a drop in its first-quarter 2016operating earnings to $463 million, or 91 cents per share, from $529 million,or $1.04 per share, in corresponding period of 2015. The result beats theS&P Global Market Intelligence normalized EPS consensus estimate of 88cents, however.
"We experienced extremes in weather conditions in thefirst quarter of 2016 compared to the first quarter of 2015 which hurt demandand margins," PSEG President, Chairman and CEO Ralph Izzo said in astatement released April 29.
Public ServiceElectric and Gas Co. contributed $262 million, or 52 cents pershare, toward first-quarter 2016 operating earnings; it had contributed $242million, or 47 cents per share, in the first quarter of 2015 and the improvedresult reflects revenue growth at the segment given PSE&G's capitalinvestment program which yielded a return of 4 cents per share.
The gains were offset at PSEG Power LLC which reported first-quarter 2016operating earnings of $184 million, or 36 cents per share, down from $278million, or 55 cents per share, in the first quarter of 2015. The segment alsoreported a drop in its first-quarter 2016 adjusted EBITDA to $416 million from$626 million in the 2015 first quarter.
PSEG Power is reducing its forecast electricity output for2016 to 52 TWh to 54 TWh from 54 TWh to 56 TWh previously. The reduction has noimpact on operating earnings guidance and incorporates the impact of warmweather on output.
PSEG reported first-quarter 2016 GAAP net income of $471million, or 93 cents per share, on revenues of $2.62 billion down from $586million, or $1.15 per share, on revenues of $3.14 billion in the first quarterof 2015. The company reported first-quarter 2016 operating income of $827million, down from $1.05 billion in the opening months of 2015.
PSEG continues to maintain its 2016 operating earningsguidance at between$1.43 billion and $1.53 billion or $2.80 per share to $3.00 per share.