TVA Reports Fiscal Year-End 2013 Results
The Tennessee Valley Authority reported Monday that the public-owned utility ended fiscal 2013 with net income of $271 million on $11 billion in operating revenues despite a decline in sales, while record levels of low-cost hydroelectric generation helped offset higher fuel costs.
“TVA reported solid financial results in 2013 despite lower sales and revenues,” TVA President and CEO Bill Johnson said.
“We experienced lower demand for power during the year due to the shutdown of a major customer facility, a slow-growing economy and adoption of energy conservation by customers,” he said. “We expect to see low growth in power demand into the next decade, and we are committed to living within our means to keep rates low for our customers and the people of the Tennessee Valley.”
Sales to local power companies were up slightly in 2013 as compared with 2012, as more normal weather patterns returned in 2013, favorably impacting demand. Sales to industrial customers directly served by TVA were off 15 percent from the prior year, primarily due to the U.S. Enrichment Corp.’s closure of its uranium enrichment facility near Paducah, Ky. Lower sales to directly served industrial customers were offset by higher off-system sales resulting from excess generation, TVA said Monday in its 2013 annual financial report to the U.S. Securities and Exchange Commission.
Total revenues declined 2 percent in 2013 compared with the prior year. The decrease was driven by a decline in base revenue as local power companies implemented new TVA wholesale rate structures, and lower fuel cost recovery revenues as a result of lower electricity sales.
Lower-cost nuclear generation was down 6 percent in 2013 versus 2012 due to four nuclear refueling outages and a steam generator replacement project, compared with two nuclear refueling outages the previous year. As a result, fuel expense increased $140 million in 2013 compared with 2012.
Record levels of rainfall in 2013 produced 42 percent more low-cost hydroelectric generation compared with 2012, which helped to partially offset higher cost generation resources.
Operating and maintenance expenses were reduced by $82 million in 2013 compared with 2012. The decrease was driven by fewer outage costs and lower scheduled maintenance for coal-fired units due to retirement or idling of less efficient coal units, and decreased costs related to post-employment benefits. Offsetting the decreases were expenses related to the four nuclear outages and other projects in 2013.
“Our company-wide efforts to enhance productivity and reduce costs will keep TVA competitive as we remain committed to fulfilling TVA’s mission,” Chief Financial Officer John Thomas said. “The actions our employees took throughout the year allowed us to end 2013 with a positive position and remain financially healthy.”
TVA reported net income of $271 million on $11 billion in operating revenues for fiscal 2013, compared with net income of $60 million on $11.2 billion in revenues last year.
TVA executive management will host a fiscal year-end 2013 financial conference call at 9:30 a.m. EST on Monday, Nov. 18, 2013. The conference call can be accessed on TVA’s website via webcast at http://www.tva.com on the Investor Relations homepage. For quick access to the live conference call, please pre-register now by going to TVA’s website before the scheduled start time and follow the instructions provided. Once pre-registered, the dial-in number will be provided via an email. If you are unable to pre-register, you may access the conference call by dialing toll free (877) 270-2148 in the United States or in Canada, or (412) 902-6510 outside the United States. A replay will be available one hour after the end of the conference call until 9:00 p.m. EST, November 26, 2013, by calling toll free (877) 344-7529 in the United States or (412) 317-0088 outside the United States and using the conference number 10034053. A webcast replay and transcript will also be available for one year on TVA’s website at http://www.tva.com/finance.
TVA’s annual report on Form 10-K provides additional financial, operational and descriptive information, including audited financial statements for the year-ended September 30, 2013, and is available to investors and the public. TVA SEC reports are also available without charge on TVA’s website at http://www.tva.com/finance or on the SEC’s website at http://www.sec.gov or by calling TVA toll free at (888) 882-4975.
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Last Update on July 07, 2015 07:36 GMT
PARIS (AP) -- Eurozone nations will hold an emergency summit today to discuss how to proceed following the `no' result in Greece's bailout referendum.
In the meantime, Germany's EU commissioner says he's optimistic that a new Greek finance minister and opposition parties' backing for Prime Minister Alexis Tsipras (TSEE'-prahs) could smooth negotiations between Athens and its European creditors.
Greece's polarizing finance minister, Yanis Varoufakis, resigned Monday and was replaced by Euclid Tsakalotos. Three opposition parties offered backing for Tsipras in the bailout negotiations.
Commissioner Guenther Oettinger told Deutschlandfunk radio Tuesday that Tsakalotos "doesn't have the same attitude as his predecessor. He knows the figures, the facts, he knows our reform proposals ... and he knows that we are flexible."
German officials insist that, even after its voters rejected more austerity in a referendum, Greece must accept conditions for any new aid.
Earlier, Chancellor Angela Merkel said "time is of the essence," after discussing the Greek crisis with French President Francois Hollande in Paris. She said that Greece must advance proposals to the table this week.
Greece's banks are facing the risk of collapse within days unless a rescue deal is reached. The European Central Bank maintained its level of cash assistance to Greek banks ahead of today's emergency meeting.
ECONOMY-THE DAY AHEAD
WASHINGTON (AP) -- A few economic reports are due out from the federal government later this morning. The Commerce Department will release international trade data for May and the Labor Department will release its job openings and labor turnover survey for the same month. This afternoon, the Federal Reserve releases May consumer credit data.
WASHINGTON (AP) -- U.S. service firms grew at a slightly faster pace in June, as business activity and new orders increased.
The Institute for Supply Management says its services index edged up to 56 in June from 55.7 in May. Any reading over 50 indicates that services firms are expanding.
Steady hiring over the past year has fueled a consumer spending rebound from a winter slump. Many economists say the economy will expand at an annual rate of 2.5 per cent in the second quarter, after shrinking during the first three months of 2015.
Still, the index's hiring component slipped in June to 52.7 from 55.3 in May, which indicates that the rate of job growth might slow.
The report corresponds with economic growth of around 3 percent annually in the second quarter, Lee said.
SEOUL, South Korea (AP) -- Samsung Electronics Co. forecasts its second-quarter profit has dropped 4 percent from a year earlier.
The maker of Galaxy smartphones said in its earnings preview Tuesday that its April-June operating profit was 6.9 trillion won ($6.1 billion). The consensus among analysts was 7.23 trillion won, according to financial data provider FactSet.
Samsung said sales fell 8 percent over a year earlier to 48 trillion won. The company is scheduled to disclose its net profit and breakdown figures among its business divisions later this month.
The announcement shows that recovery at Samsung's smartphone division was not as strong as expected.
Analysts have lowered profit forecasts on Samsung in recent weeks, citing the weaker-than-expected sales of its flagship smartphones, the Galaxy S6 and S6 Edge, which went on sale in April.
NEW YORK (AP) -- Starbucks says it's hiking prices again starting today, with the increases ranging from 5 to 20 cents for most affected drinks.
The Seattle-based company also raised prices nationally about a year ago.
The company says that a small and large brewed coffee will each go up by 10 cents in most areas of the country. That would bring the price of a large coffee to $2.45 in most U.S. stores.
Some other coffee sellers are cutting prices. Last week, The J.M. Smucker Co. said it would cut prices for most of its coffee products because of declines in future prices for unroasted coffee beans. In an emailed statement yesterday, Starbucks Corp. said coffee costs are only part of its expenses, which also include rent, labor, marketing and equipment.
Sheryl Sandberg joins SurveyMonkey board of directors
UNDTED ( AP) -- SurveyMonkey will add two new members to its board of directors, including Facebook's chief operating officer, Sheryl Sandberg.
Sandberg is the widow of David Goldberg, who was CEO at SurveyMonkey from 2009 until he died in an accident while exercising in May.
The Palo Alto, California, company said Monday its other new director is David Ebersman, the CEO of Lyra Health and former chief financial officer at Facebook.
SurveyMonkey, which operates an online survey platform, also said Zander Lurie, its acting executive chairman, will take on the role on a permanent basis.
WAL-MART-ARMORED CAR HEIST
BRISTOW, Okla. (AP) -- Investigators say they have no suspects in the theft of $75,000 from an Oklahoma Wal-Mart by a man disguised as an armored truck driver.
Authorities say the suspect entered the Wal-Mart store in Bristow about 10:30 a.m. Saturday dressed similarly to a Loomis armored transport employee. The suspect strolled to the cash office, signed for the deposit and walked out of the store.
Wal-Mart employees called police after the real Loomis employee arrived about 45 minutes later. Bristow is about 35 miles southeast of Tulsa.
Bristow Police Chief Wayne Williams said Monday investigators have not identified the suspect whose image was captured by a video surveillance camera. Williams says officials don't believe the suspect lives in the area.
Williams says Wal-Mart has alerted its other stores about the theft.
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