(By Balaseshan) American Electric Power Co. Inc. (NYSE: AEP), a utility holding company, reported a 93.2 percent drop in quarterly earnings primarily due to Ohio plant impairments and restructuring charges.
Profit plunged 93.2 percent to $21 million for the fourth quarter, while earnings per share (EPS) dropped 92.2 percent to $0.05.
Operating earnings per share rose to $0.50 from $0.40. The company said its operating earnings were in line with results from last year despite sluggish demand growth and the negative impact of customer switching in Ohio.
The company said the operating results was higher than GAAP earnings because of Ohio plant impairments, adjustment associated with the Texas cost cap on the construction of the John W. Turk Jr. (Turk) coal-fueled power plant, and cost restructuring charge.
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Revenue marginally increased 0.2 percent to $3.6 billion.
Retail margins for the fourth quarter were $178 million higher than last year, as the company experienced colder weather in its eastern service territories and the continuing favorable impact of rate decisions.
Transmission Revenue for fourth-quarter 2012 was $27 million higher than previous year, primarily as a result of increased revenues in Electric Reliability Council of Texas (ERCOT) and PJM, including revenues associated with customer switching.
Total retail energy delivered marginally fell 0.8 percent to 40.29 billion kilowatt hour (kWh), while total wholesale energy delivered grew 43.8 percent to 11.48 billion kWh.
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Looking ahead into the fiscal 2013, the company established 2013 operating earnings guidance of $3.05 to $3.25 per share.
"We've filed for corporate separation and transfer of our Ohio generation assets to our competitive generation entity and other operating companies and expect to fully separate our Ohio generation from our Ohio utility operations at the end of 2013," said Chief Executive Nicholas Akins.
AEP closed Thursday's regular session down 0.36 percent at $44.77. The stock has been trading between $36.97 and $45.48 for the past 52 weeks.