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TVA Reports Net Income of $54 Million in Second Quarter 2013
The Tennessee Valley Authority reported Friday net income of $54 million on operating revenues of $2.74 billion in the second quarter of 2013. This compares with a net loss of $94 million on operating revenues of $2.60 billion in the same period last year.
“We ended the second quarter 2013 essentially on plan,” President and CEO Bill Johnson said. “More normal weather had a favorable impact, as did employee efforts to reduce costs.
“We are focused on controllable factors that improve cost management and drive operational performance as we work to keep rates low. This is particularly important as we enter the summer months, when customer usage and sales typically are at the highest levels,” he said.
Sales to local power companies that distribute TVA electricity were 9 percent higher in the second quarter and 5 percent higher in the first six months of 2013, compared with the same periods last year. Higher off-system sales as a result of excess generation also contributed to higher sales. Offsetting these increases were lower sales to directly served industrial customers, TVA said in its quarterly filing to the U.S. Securities and Exchange Commission for the quarter ended March 31, 2013.
Total revenues increased 5 percent in the second quarter and 3 percent year to date, compared with the same periods last year. The increases were driven by higher fuel cost recovery due to higher fuel rates and an increase in electricity sales. Base revenue was $36 million higher in the second quarter due to an increase in electricity sales, but was down $49 million in the first six months of 2013 in part from a decrease in the effective base rate as distributors selected new wholesale rate structures.
Fuel expense was $148 million higher in the second quarter and $302 million higher in the first six months of 2013, compared with the same periods last year primarily due to more nuclear outages in 2013, which resulted in more generation from higher-cost sources, particularly natural gas and coal-fired generation.
“We were pleased to be able to hold our average power rates steady for customers, despite the increases in fuel and commodity costs,” Chief Financial Officer John Thomas said. “To further improve TVA’s power rates, we will continue developing a more balanced generation portfolio through effective asset management.”
Operating and maintenance expense increased by $13 million in the second quarter and was $52 million higher in the first half of this year compared with the same periods last year. During the first six months of 2013, TVA completed three nuclear refueling outages and a steam generator replacement project and began a fourth refueling outage, compared to one nuclear refueling outage in the same period last year.
For the six months ended March 31, 2013, TVA reported a net loss of $191 million on operating revenues of $5.32 billion, compared with a net loss of $267 million on operating revenues of $5.17 billion in the same period a year ago.
TVA executive management will host a second quarter fiscal year 2013 financial conference call at 9:30 a.m. EDT on Friday, May 3, 2013. The conference call can be accessed on TVA’s website via webcast at http://www.tva.com/finance. 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 5:00 p.m. EDT, May 13, 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 10026404. A webcast replay and transcript will also be available for one year on TVA’s website at http://www.tva.com/finance.
TVA’s quarterly report on Form 10-Q provides additional financial, operational and descriptive information, including unaudited financial statements for the quarter ended March 31, 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 November 28, 2014 08:26 GMT
WTO-GLOBAL TRADE DEAL
GENEVA (AP) -- The World Trade Organization has pulled off a major deal that could boost global commerce by $1 trillion annually after years of negotiation.
Diplomats says the deal approved Thursday is the first multilateral trade agreement in the organization's 20-year history. It will go into effect after all 160 member countries ratify, expected sometime next year.
A U.S.-India deal this month over food stockpiling by India cleared the way for the agreement that U.S. Trade Representative Michael Froman said "preserved the letter and spirit of the package of decisions" reached at a WTO summit last December in Bali.
European Union Trade Commissioner Cecilia Malmstroem said the deal will "lift millions out of poverty."
VIENNA (AP) -- OPEC oil ministers have decided to keep their present output target at 30 million barrels a day, despite an oversupply of crude and plunging prices.
The decision Thursday was expected. OPEC oil power Saudi Arabia had indicated before the meeting that it favors the status-quo.
The Saudis are the top producers within the 12-nation organization and effectively decide the cartel's policy.
Some less well-off members had favored a cut, to reduce supplies and push prices back up. But because of booming shale production in the U.S, that would not have made a sizable dent in supply.
TOKYO (AP) -- Japan's inflation rate fell to a six-month low, highlighting the difficulty Prime Minister Shinzo Abe faces in his campaign to overcome deflation in the world's third-largest economy.
The core consumer price index, excluding fresh foods, rose 2.9 percent in October from a year earlier, according to data released Friday. Excluding the impact of a 3 percentage point sales tax hike in April, it rose 0.9 percent.
The tax hike broadsided the recovery as consumers and companies reined in spending after splashing out early in the year. Retail spending and household incomes also fell in October from a year earlier.
Other data for October were mixed. Industrial output edged up from the month before but fell 1 percent from a year earlier. The unemployment rate eased slightly.
NEW YORK (AP) -- It's what's quickly becoming a new holiday tradition, gift shopping on Thanksgiving.
Just a few years ago when some stores started opening late on the holiday, the move was met with resistance from workers and shoppers who believed the day should be sacred.
Last year, more than dozen major retailers opened at some point on Thanksgiving evening. And this year, at least half of them opened earlier in the evening.
The Thanksgiving openings are one way retailers are trying to compete for Americans' holiday dollars. Retailers used to focus sales promotions on Black Friday. But increasingly, they've been pushing promotions earlier to grab deal-hungry shoppers' attention.
The National Retail Federation expects 25.6 million shoppers to take advantage of the Thanksgiving openings and it's starting to take a bite out of Black Friday business. Indeed, sales dropped 13.2 percent to $9.74 billion on Black Friday last year.
BUENOS AIRES, Argentina (AP) -- Argentina's tax agency charged HSBC bank Thursday with helping more than 4,000 Argentines evade taxes by placing their money in secret Swiss accounts.
The head of the country's AFIP tax agency, Ricardo Echegaray, said Argentine citizens evaded about $3 billion in taxes that were handled by intermediaries through a network of offshore accounts.
Echegaray alleged that some of those accounts in Geneva are owned by HSBC Argentina's president and other bank executives. He did not say if the bank's operations had been suspended in Argentina.
AFIP said it got its information from France, where HSBC was placed under formal investigation last week for possibly aiding tax evasion. The banking company has also been charged in Belgium with organized fiscal fraud.
HSBC said it respects Argentine laws and has committed no wrongdoing.
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