AEP profit beats estimates on lower costs, warmer weather
(Reuters) - American Electric Power Co Inc (AEP.N) posted a better-than-expected second-quarter profit on warmer weather and reduced costs, but said its full-year profit forecast would remain suspended due to regulatory proceedings in Ohio.
"We have received an order from the Public Utilities Commission of Ohio regarding capacity charges, but a decision on the Electric Security Plan, or ESP, isn't expected until early August," Chief Executive Nicholas Akins said in a statement.
The Columbus, Ohio-based company, which operates utilities in 11 states, said it faces challenges for the rest of the year including customer switching in Ohio.
Costs for maintenance and other operations fell 11 percent to $756 million for the second quarter.
Net earnings rose to $362 million, or 75 cents per share, from $352 million, or 73 cents per share, a year earlier.
Excluding items, the company earned 77 cents per share.
Revenue remained constant at $3.6 billion.
Analysts on average had expected the company to post a profit of 71 cents per share on revenue of $3.57 billion, according to Thomson Reuters I/B/E/S.
Shares of the company, which have gained about 27 percent of its value over the last year, closed at $42.00 on the New York Stock Exchange on Thursday.
(Reporting by Sunayan Bhattacharjee in Bangalore; Editing by Don Sebastian)
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