Great Plains Energy Reports Fourth Quarter and Full-Year 2015 Results; Announces 2016 Earnings Guidance and Long-Term Earnings and Dividend Growth Targets
The Company also introduced its 2016 earnings guidance range of
“In 2015, we completed the
Great Plains Energy Fourth Quarter:
GREAT PLAINS ENERGY INCORPORATED | |||||||||||||||||||||
Consolidated Earnings and Earnings Per Share | |||||||||||||||||||||
Three Months Ended December 31 | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Earnings per Great | |||||||||||||||||||||
Earnings | Plains Energy Share | ||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
(millions) | |||||||||||||||||||||
Electric Utility | $ | 27.4 | $ | 22.4 | $ | 0.18 | $ | 0.14 | |||||||||||||
Other | (4.5 | ) | (2.9 | ) | (0.03 | ) | (0.02 | ) | |||||||||||||
Net income | 22.9 | 19.5 | 0.15 | 0.12 | |||||||||||||||||
Preferred dividends | (0.4 | ) | (0.4 | ) | - | - | |||||||||||||||
Earnings available for common shareholders | $ | 22.5 | $ | 19.1 | $ | 0.15 | $ | 0.12 | |||||||||||||
On a per-share basis, drivers for the increase in fourth quarter 2015 compared to the same period in 2014 included the following:
-
$0.11 of newMissouri andKansas retail rates that became effectiveSeptember 29, 2015 andOctober 1, 2015 , respectively; -
An estimated
$0.02 impact from an increase in weather-normalized retail demand; and -
An approximately
$0.07 increase in other margin due to a change in customer mix, lower fuel and purchased power expenses that do not flow through a fuel recovery mechanism and an increase in transmission costs recovered through a transmission recovery mechanism.
These drivers were partially offset by the following:
-
$0.07 decline from milder weather driven by a 25 percent decrease in heating degree days compared to the fourth quarter 2014; -
$0.02 increase in other operating and maintenance expense; -
$0.02 increase in depreciation and amortization due to environmental upgrades atLa Cygne and other capital investments being placed into service; -
$0.03 of other items including higher general taxes; and -
A
$0.03 decrease in Allowance forFunds Used During Construction (AFUDC) resulting from lower average construction work in progress due to environmental upgrades atLa Cygne and other capital investments placed into service.
Overall retail MWh sales were down 4.6 percent compared to the 2014
period with the decline driven by weather. When compared to normal
weather, the unfavorable weather impact in the fourth quarter 2015 was
approximately
Great Plains Energy Full-Year:
GREAT PLAINS ENERGY INCORPORATED | |||||||||||||||||||||
Consolidated Earnings and Earnings Per Share | |||||||||||||||||||||
Year Ended December 31 | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Earnings per Great | |||||||||||||||||||||
Earnings | Plains Energy Share | ||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
(millions) | |||||||||||||||||||||
Electric Utility | $ | 223.8 | $ | 243.5 | $ | 1.45 | $ | 1.58 | |||||||||||||
Other | (10.8 | ) | (0.7 | ) | (0.07 | ) | - | ||||||||||||||
Net income | 213.0 | 242.8 | 1.38 | 1.58 | |||||||||||||||||
Preferred dividends | (1.6 | ) | (1.6 | ) | (0.01 | ) | (0.01 | ) | |||||||||||||
Earnings available for common shareholders | $ | 211.4 | $ | 241.2 | $ | 1.37 | $ | 1.57 | |||||||||||||
On a per-share basis, drivers for the decrease in full-year 2015 versus 2014 were the following:
-
An estimated
$0.10 impact from weather; -
An estimated
$0.07 decline in wholesale margin due to lower natural gas prices; -
$0.03 increase in transmission expense not recovered through a recovery mechanism; -
$0.10 increase in depreciation and amortization due to environmental upgrades atLa Cygne and other capital investments being placed into service; -
$0.12 decline in AFUDC resulting from lower average construction work in progress due to environmental upgrades atLa Cygne and other capital investments being placed into service; -
$0.05 benefit from the release of uncertain tax positions included in the 2014 results; and -
$0.05 of other items including higher general taxes primarily driven by higher property taxes.
The factors above were partially offset by the following:
-
$0.14 of new retail rates effectiveSeptember 29, 2015 inMissouri andJuly 25, 2014 andOctober 1, 2015 inKansas ; -
An estimated
$0.02 impact from an increase in weather-normalized retail demand; -
$0.06 from lower fuel and purchased power expense; -
An approximately
$0.07 increase in other margin due to a change in customer mix, lower fuel and purchased power expenses that do not flow through a fuel recovery mechanism and an increase in transmission costs recovered through a transmission recovery mechanism; and -
$0.03 decrease in other operating and maintenance expense driven primarily by lower operating and maintenance expense at Wolf Creek.
On a weather-normalized basis, full-year 2015 retail MWh sales increased
an estimated 0.4 percent, net of Missouri Energy Efficiency Investment
Act impacts, compared to the 2014 period. Overall retail MWh sales were
down 1.9 percent compared to the 2014 period with the decrease driven by
weather. The unfavorable weather impact in 2015, when compared to
normal, was approximately
Earnings Webcast Information:
An earnings conference call and webcast is scheduled for
A live audio webcast of the conference call, presentation slides, supplemental financial information, and the earnings press release will be available on the investor relations page of Great Plains Energy’s website at www.greatplainsenergy.com. The webcast will be accessible only in a “listen-only” mode.
The conference call may be accessible by dialing (888) 353-7071
(U.S./
A replay and transcript of the call will be available later in the day
by accessing the investor relations section of the Company’s website. A
telephonic replay of the conference call will also be available through
About
Headquartered in
Forward-Looking Statements:
Statements made in this release that are not based on historical facts
are forward-looking, may involve risks and uncertainties, and are
intended to be as of the date when made. Forward-looking statements
include, but are not limited to, the outcome of regulatory proceedings,
cost estimates of capital projects and other matters affecting future
operations. In connection with the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995,
This list of factors is not all-inclusive because it is not possible to
predict all factors. Other risk factors are detailed from time to time
in Great Plains Energy’s and KCP&L’s quarterly reports on Form 10-Q and
annual report on Form 10-K filed with the
View source version on businesswire.com: http://www.businesswire.com/news/home/20160224006639/en/
Source:
Great Plains Energy
Investors:
Calvin Girard,
816-654-1777
Senior Manager, Investor Relations
calvin.girard@kcpl.com
or
Media:
Katie
McDonald, 816-556-2365
Director, Corporate Communications
katie.mcdonald@kcpl.com