PacifiCorp Reports First Quarter 1995 Earnings Below Expectations

Strategic Insights -

PacifiCorp, a leading electric and telecommunications company, reported first quarter 1995 earnings of $105 million, or $0.37 per share, on common stock, compared to $111 million, or $0.39 per share, for the same quarter a year ago. The company's earnings were impacted by mild winter weather, soft market for wholesale energy, and higher effective tax rates, offset by customer growth in electric and telecommunications operations.

Key Takeaways:

  • PacifiCorp's first quarter 1995 earnings fell short of expectations, totaling $105 million, or $0.37 per share, compared to $111 million, or $0.39 per share, in the same quarter the previous year.
  • The company's electric operations reported a 1% decrease in revenues, mainly due to a 1% decrease in total energy sales and mild winter weather, which averaged 1 degree warmer than the prior year.
  • Wholesale revenues declined $7 million, or 6%, to $112 million, while spot and short-term market revenues decreased $8 million to $22 million, reflecting lower sales prices and volumes.
  • Operating expenses declined $3 million, or 1% in electric operations, with fuel costs declining $15 million, or 12%, primarily due to decreased thermal power generation.
  • The company's telecommunication subsidiary, Pacific Telecom, Inc., reported a 5% increase in earnings contribution, driven by the recent acquisition of local exchange assets in Colorado and growth in cellular operations.
  • PacifiCorp's consolidated capitalization includes long-term debt and capital of $4.5 billion, with a long-term debt-to-capital ratio of 46.3%.

Statistics:

  • First quarter 1995 revenues: $649 million
  • Electric operating expenses: $605 million
  • Total wholesale energy sales: 959 million kWh (7% decrease from 1994)
  • Fuel costs: $127 million (12% decrease from 1994)
  • PacifiCorp's market share of the Western United States' wholesale market: 13.4%
  • Pacific Telecom, Inc.'s earnings contribution: $14 million (5% increase from 1994)

Sources:

  • PR Newswire, "PacifiCorp Reports First Quarter 1995 Earnings", April 27, 1995
  • SEC Form 10-Q, PacifiCorp, Q1 1995
  • Press Release, PacifiCorp, Q1 1995 Earnings Report