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Actionable news in IDA: IDACORP Inc,

Idacorp, Inc. Announces Second Quarter 2015 Results, Increases 2015 Earnings Guidance

The following excerpt is from the company's SEC filing.

BOISE--IDACORP, Inc. (NYSE: IDA) reported second quarter 2015 net income attributable to IDACORP of

$66.1 million

per diluted share, compared with

$44.5 million

per diluted share, in the second quarter of 2014. Idaho Power Company, IDACORP's principal operating subsidiary, reported second quarter 2015 net income of

$64.3 million

$42.7 million

in the second quarter of 2014. For the first six months of 2015, IDACORP recorded net income attributable to IDACORP of

$89.5 million

$71.9 million

per diluted share, in the first six months of 20 14.

“Second quarter results were positively impacted by greater irrigation and residential energy use due to warmer, drier weather than during the same period last year,” said IDACORP, Inc. President and CEO Darrel Anderson. "Continued customer growth in the service area and diligent cost management efforts contributed to the enhanced operating results. The second quarter also benefited from recently approved changes to regulatory mechanisms and from the income tax benefits associated with the early redemption of Idaho Power first mortgage bonds.

“Based on these results and our outlook for the remainder of 2015, we are increasing IDACORP’s annual earnings per share guidance from the range of $3.65 to $3.80 per diluted share to the range of $3.75 to $3.90 per diluted share,” added Anderson.

Performance Summary

A summary of financial highlights for the periods ended June 30, 2015 and 2014 is as follows (in thousands except per share amounts):

Three months ended June 30,

Six months ended June 30,

Net income attributable to IDACORP, Inc.

66,080

44,540

89,510

71,944

Average outstanding shares – diluted (000’s)

50,258

50,156

50,259

50,166

IDACORP, Inc. earnings per diluted share

The table below provides a reconciliation of net income attributable to IDACORP for the three- and six-month periods ended

June 30, 2015

to the same periods in 2014 (items are in millions and are before tax unless otherwise noted):

Net income attributable to IDACORP, Inc. - June 30, 2014

Change in Idaho Power net income:

Increased sales volumes attributable to usage per customer, net of associated power supply costs and PCA mechanism impacts

Impact in the second quarter of 2015 of retroactively applying FCA mechanism changes to first quarter activity

Other (decreases) increases in FCA revenues

Increased sales volumes attributable to customer growth, net of associated power supply costs and PCA mechanism impacts

Increase in other operating and maintenance expenses

Increase in depreciation expense

Other changes in operating revenues and expenses, net

Increase in Idaho Power operating income

Changes in other non-operating income and expenses

Decrease in income tax related to first mortgage bond redemption costs

Change in additional amortization of accumulated deferred income tax credits (ADITC)

(Increase) decrease in other income tax expense

Total increase in Idaho Power net income

Other changes (net of tax)

Net income attributable to IDACORP, Inc. - June 30, 2015

Second Quarter 2015 Net Income

IDACORP's net income increased $21.6 million for the second quarter of 2015 when compared with the same period in the prior year. The increase was driven primarily by a $14.5 million increase in Idaho Power’s operating income and by lower income tax expense.

A June 2015 heat wave combined with dry spring weather resulted in record second quarter sales volumes, which improved Idaho Power's operating income by $7.8 million when compared with the same period of 2014, which was a more normal weather quarter. Hot temperatures increased loads for air conditioning purposes, and dry weather increased the use of irrigation equipment. Idaho Power’s continued customer growth also contributed $2.9 million to operating income.

Recently approved changes to Idaho Power's FCA mechanism also affected second quarter 2015 results. The revisions were approved by the IPUC in May 2015, retroactive to January 1, 2015. The FCA revenue accrual associated with the first quarter of 2015 increased by $7.4 million—reflective of the extremely mild temperatures during the first quarter—as the revised mechanism now addresses fluctuations in sales associated with actual weather conditions, as opposed to normalized weather conditions under the prior mechanism...


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