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Electric utilities

MidAmerican Energy Company Reports 15% Increase in Second Quarter Earnings

Strategic Insights

— 2 min read

MidAmerican Energy Company, the largest utility in Iowa, announced a significant increase in its second-quarter earnings, driven by increased electric and natural gas sales, lower nuclear generation costs, and the sale of nonregulated investments. The company's earnings for the three months ended June 30, 1995, were $24.9 million, a 15% increase from the same period in 1994. Despite this growth, the company's earnings per share decreased slightly to 25 cents due to the costs of a merger-related incentive retirement program.

Key Takeaways:

  • MidAmerican Energy Company reported a 15% increase in second-quarter earnings, reaching $24.9 million, compared to $21.6 million in the same period in 1994.
  • The earnings gain resulted from increased electric and natural gas sales, lower nuclear generation costs, and the sale of two nonregulated investments.
  • The sale of nonregulated investments contributed 5 cents per share to quarterly earnings, while the costs of a merger-related incentive retirement program resulted in a charge to earnings of 4 cents per share.
  • Retail electric sales remained unchanged, while sales for resale doubled, compared to 1994. Retail natural gas sales increased nearly 9%, and gas transportation and other sales increased 15%, compared to the same period in 1994.
  • Nonregulated MidAmerican subsidiaries, InterCoast Energy Company and Midwest Capital Group, contributed $4.8 million in earnings, or 5 cents per share, compared to $2.7 million, or 3 cents per share, in the same period in 1994.
  • The company's earnings for the six months ended June 30, 1995, were $60.2 million, a 9% decrease from the same period in 1994, due to the costs of a merger-related incentive retirement program and a reduction in the contribution from nonregulated subsidiaries.
  • Lance Cooper, group vice president-finance and accounting, stated that the earnings gain resulted from increased electric and natural gas sales, lower nuclear generation costs, and the sale of nonregulated investments.

Statistics:

  • Earnings: $24.9 million (15% increase from $21.6 million in 1994)
  • Earnings per share: 25 cents (compared to 22 cents in 1994)
  • Revenues: $371.4 million (2.4% increase from $367.4 million in 1994)
  • Retail electric sales: unchanged
  • Sales for resale: doubled, compared to 1994
  • Retail natural gas sales: 9% increase, compared to the same period in 1994
  • Gas transportation and other sales: 15% increase, compared to the same period in 1994
  • Nonregulated MidAmerican subsidiaries' earnings: $4.8 million (5 cents per share), compared to $2.7 million (3 cents per share) in the same period in 1994

Sources:

  • MidAmerican Energy Company press release, August 14, 1995
  • PRNewswire, August 14, 1995

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