Duke posts higher 2Q16 earnings
Duke Energy (DUK) posted its 2Q16 earnings on August 4, 2016. It reported 13% rise in its earnings year-over-year and earned $1.07 per share in the reported quarter.
For the same quarter last year, it earned $0.95 per share. Duke’s second quarter earnings were positively impacted by higher revenues from the Retail segment and lower operating expenses. Duke Energy’s management reiterated its 2016 earnings guidance of $4.50 to $4.70 per share.
Duke Energy’s regulated utilities earned $718 million in profit compared to $632 in the comparable period last year. Earnings growth was primarily triggered by higher rates and riders. Net margins from wholesale operations also increased during the quarter primarily due to acquisition of North Carolina Eastern Municipal Power. These positive factors were partially offset by less favorable weather.
Duke’s Commercial portfolio also registered earnings growth from $11 million in 2Q15 to $14 million in 2Q16. Higher earnings from the commercial portfolio were triggered by increased investments in Sabal Trail and Atlantic Coast pipelines.
Earnings from Duke’s International segment decreased by 17% in 2Q16 year-over-year, and it reported net income $43 million. Earnings from the Latin American segment increased by $0.03 per share. Earnings from National Methanol Company decreased $0.02 per share during the quarter.
After releasing its second quarter earnings, Duke Energy’s president, chairman, and CEO, Lynn Good said, “Our solid second quarter performance reflects the strength of our regulated utilities driven by strategic investments, dedicated cost management and a relentless focus on operational excellence.”