Ameren Announces First Quarter 2021 Results


ST. LOUIS, May 10, 2021 /PRNewswire/ — Ameren Corporation (NYSE: AEE) today announced first quarter 2021 net income attributable to common shareholders of $233 million, or $0.91 per diluted share, compared to first quarter 2020 net income attributable to common shareholders of $146 million, or $0.59 per diluted share.

First quarter 2021 results reflected earnings on increased infrastructure investments made across all business segments driven by solid execution of the company’s strategy. Earnings were positively impacted by new Ameren Missouri electric service rates effective April 1, 2020, and higher Ameren Missouri electric retail sales driven by near-normal winter temperatures in the first quarter of 2021 compared to milder-than-normal winter temperatures in the year-ago period. Lower Ameren Missouri other operations and maintenance expenses also increased earnings, primarily driven by the absence of unfavorable market returns that occurred in the first quarter of 2020 on the cash surrender value of company-owned life insurance, as well as disciplined cost management. Ameren Illinois Natural Gas Distribution earnings increased due to a change in rate design and higher delivery service rates effective in late January 2021. Earnings were positively impacted by a higher allowed return on equity at Ameren Illinois Electric Distribution due to a higher projected average 30-year U.S. Treasury bond yield in 2021 compared to 2020. Earnings also benefited from the timing of income tax expense at Ameren Missouri and Ameren Parent, which is not expected to impact full-year results. Earnings were negatively impacted at Ameren Transmission by a 2021 FERC order addressing the historical recovery of materials and supplies inventories. Finally, 2021 earnings per share reflected higher weighted-average basic common shares outstanding and the effect of dilution.

“We are executing on all elements of our strategy, including significant investments in energy infrastructure and disciplined cost management across all of our business segments, which is delivering significant value to our customers,” said Warner L. Baxter, chairman, president and chief executive officer of Ameren Corporation. “We remain on track to deliver within our 2021 earnings per share guidance range of $3.65 to $3.85.”

“We remain focused on our robust sustainability initiatives tied to environmental, social and governance matters,” Baxter said. “We continue to take action to support our commitment to deliver significant long-term value by, among other things, investing in clean energy and supporting the communities we serve. In our recently issued 2021 Sustainability Report, we highlight a number of actions we have been taking to enhance our strong sustainability value proposition. Our efforts remain consistent with our vision, leading the way to a sustainable energy future, and our mission, to power the quality of life.”

Earnings Guidance

Today, Ameren affirmed its 2021 earnings guidance range of $3.65 to $3.85 per diluted share. Earnings guidance for 2021 assumes normal temperatures for the last nine months of the year and is subject to the effects of, among other things: the impacts of COVID-19; 30-year U.S. Treasury bond yields; regulatory, judicial and legislative actions; energy center and energy distribution operations; energy, economic and capital market conditions; severe storms; unusual or otherwise unexpected gains or losses; and other risks and uncertainties outlined, or referred to, in the Forward-looking Statements section of this press release.

Ameren Missouri Segment Results

Ameren Missouri first quarter 2021 earnings were $47 million, compared to a first quarter 2020 loss of $10 million. The year-over-year improvement reflected new electric service rates effective April 1, 2020, and higher electric retail sales driven by near-normal winter temperatures in the first quarter of 2021 compared to milder-than-normal winter temperatures in the year-ago period. Lower other operations and maintenance expenses also increased earnings, primarily driven by the absence of unfavorable market returns that occurred in the first quarter of 2020 on the cash surrender value of company-owned life insurance and disciplined cost management. Earnings also benefited from the timing of income tax expense, which increased earnings by $6 million and is not expected to impact full-year results. The absence of charitable donations that were made pursuant to the March 2020 electric rate review settlement also positively affected the earnings comparison. These positive factors were partially offset by amortization of deferred expenses related to the fall 2020 Callaway refueling and maintenance outage.

Ameren Illinois Electric Distribution Segment Results

Ameren Illinois Electric Distribution first quarter 2021 earnings were $46 million, compared to first quarter 2020 earnings of $37 million. The year-over-year improvement reflected increased earnings on infrastructure investments and a higher allowed return on equity due to a higher projected average 30-year U.S. Treasury bond yield in 2021 compared to 2020.

Ameren Illinois Natural Gas Segment Results

Ameren Illinois Natural Gas first quarter 2021 earnings were $75 million, compared to first quarter 2020 earnings of $55 million. The year-over-year improvement reflected a rate design change, which increased earnings by $9 million and is not expected to impact full-year results, and higher delivery service rates that incorporated increased investments in infrastructure, both effective in late January 2021.

Ameren Transmission Segment Results

Ameren Transmission first quarter 2021 earnings were $47 million, compared to first quarter 2020 earnings of $47 million. The year-over-year comparison reflected increased earnings on infrastructure investments offset by the impact of a 2021 FERC order addressing the historical recovery of materials and supplies inventories.

Ameren Parent Results (includes items not reported in a business segment)

Ameren Parent results for the first quarter of 2021 reflected earnings of $18 million, compared to first quarter 2020 earnings of $17 million. The year-over-year improvement reflected the timing of income tax expense, which increased earnings by $5 million and is not expected to impact full-year results. This positive factor was partially offset by increased interest expense primarily due to higher long-term debt outstanding.

Analyst Conference Call

Ameren will conduct a conference call for financial analysts at 9 a.m. Central Time on Tuesday, May 11, to discuss 2021 earnings, earnings guidance and other matters. Investors, the news media and the public may listen to a live broadcast of the call at AmerenInvestors.com by clicking on “Webcast” under “Q1 2021 Earnings Conference Call,” where an accompanying slide presentation will also be available. The conference call and presentation will be archived for one year in the “Investor News & Events” section of the website under “Events and Presentations.”

About Ameren

St. Louis-based Ameren Corporation powers the quality of life for 2.4 million electric customers and more than 900,000 natural gas customers in a 64,000-square-mile area through its Ameren Missouri and Ameren Illinois rate-regulated utility subsidiaries. Ameren Illinois provides electric transmission and distribution service and natural gas distribution service. Ameren Missouri provides electric generation, transmission and distribution service, as well as natural gas distribution service. Ameren Transmission Company of Illinois develops, owns and operates rate-regulated regional electric transmission projects in the Midcontinent Independent System Operator, Inc. For more information, visit Ameren.com, or follow us on Twitter at @AmerenCorp, Facebook.com/AmerenCorp, or LinkedIn/company/Ameren.

Forward-looking Statements 

Statements in this release not based on historical facts are considered “forward-looking” and,…



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