CenterPoint Energy Reports Jump in Income for 2Q 2021

Houston-based CenterPoint Energy, Inc. reported income of $221 million, or $0.37 per diluted share, for the second quarter of 2021, according to an earnings report issued last week. This compares to income available to common shareholders of $59 million, or $0.11 per diluted share, for the second quarter of 2020.

On a non-GAAP basis, second quarter 2021 earnings were $0.36 per diluted share, with $0.28 per diluted share from utility operations, and $0.08 per diluted share from midstream investments. This compared to $0.18 per diluted share from utility operations and $0.03 per diluted share from midstream investments in second quarter 2020. Both quarters included some one-time drivers. The second quarter 2020 Utility earnings per share (EPS) included an unfavorable COVID-related impact of $0.06, while the second quarter 2021 Utility EPS included a favorable income tax benefit of $0.03. Other notable variances in Utility EPS for the quarter included $0.04 of favorable variance from organic growth and rate recovery, which was partially offset by a $0.02 impact attributable to the May 2020 equity issuance.

“CenterPoint’s six-month financial performance in 2021 has been strong,” said Dave Lesar, President and Chief Executive Officer of CenterPoint Energy. “We are raising our 2021 Utility EPS guidance range to $1.25-$1.27 per diluted share. This projected 8% growth in 2021 Utility EPS would put us at the high-end of our 6 to 8% Utility EPS annual growth target.”

The energy delivery company has invested approximately $1.5 billion for the first six months of 2021 and remains on track to invest a total of $3.4 billion for the full year. Legislative activity during this past session in Texas also benefited the company, allowing for additional capital investment opportunities beyond the 5-year, $16 billion investment plan that was previously announced.

CenterPoint Energy’s total revenues in the quarter were $1,742 million. Moreover, the reported figure came in 10.6% higher than the prior-year quarter’s figure. Higher contribution from the utility segment contributed to top-line growth.

Total expenses during the second quarter escalated 7.9% to $1,446 million.

The company’s operating income surged 26% year over year to $296 million in the quarter.

Interest expense and other finance charges declined to $119 million from $128 million in the year-ago quarter.

As of June 30, 2021, CenterPoint Energy had cash and cash equivalents of $136 million, down from $147 million as of December 31, 2020.

Total long-term debt was $15,853 million as of June 30, 2021, compared with $11,521 million as of December 31, 2020.

At the end of 2Q 2021, the company’s net cash outflow from operating activities was $1,076 million against cash inflow of $1,181 million at the end of 2Q 2020.

CenterPoint Energy’s total capital expenditure was $1,383 million at the end of second quarter, up from $1,278 million in the year-ago period.

CenterPoint serves more than 7 million customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas.

 

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