Exelon maintains 2020 earning guidance and will offset impact of uncertain market conditions amid COVID-19, says GlobalData

Despite the reduction in demand due to the pandemic, Exelon has managed to maintain its 2020 earning guidance because the adjusted (non-GAAP) operating earnings remained consistent at $0.87 per share in Q1 2020. However, it is expected that Exelon’s utilities and Generation companies will undergo a reduction in operating revenues due to lower electric load for the rest of the year, says GlobalData, a leading data and analytics company.

Somik Das, Power Analyst at GlobalData, comments: “Exelon’s adjusted (non-GAAP) operating earnings in the first quarter of 2020 may have been maintained because of higher generation earnings due to increased revenue from Zero Emission Credits (ZECs) in New Jersey, lower operating and maintenance expense and shorter outage days.

“Most utilities worldwide are maintaining liquidity to be better equipped to face the volatile market conditions and Exelon is no different. Exelon is waiving off late charges, suspending disconnection and reconnecting those who were disconnected previously to assist its customers during financial distress. The company is sticking to its investment plans as per their guidance and has lowered capital expenditures at Exelon Generation by $125m to ensure it has enough finances to offset the loss in operating revenues due to the pandemic. Exelon is expected to meet its target of 7.3% rate base growth and 6% to 8% earnings per share growth by 2023 as it expects market recovery from next year.”

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