Great Plains Energy 2nd-quarter net income jumps 92 percent on hot weather, higher rates

Thursday, August 5, 2010

Great Plains 2Q net income rises with the mercury

KANSAS CITY, Mo. — Electric company Great Plains Energy Inc. said Thursday that its second-quarter net income skyrocketed 92 percent, helped by higher rates and warmer weather.

The company also boosted its earnings guidance for the year.

For April through June, net income jumped to $63.9 million, or 47 cents per share, from $33.3 million, or 26 cents per share, a year earlier.

Analysts surveyed by Thomson Reuters forecast earnings of 41 cents per share.

The company said rate increases in Kansas and Missouri made it more profitable. Sales also were stronger due to warmer weather, which prompts customers to crank up the air conditioning.

Revenue increased 15 percent to $552 million from $480.5 million, passing the $537.6 million analysts predicted.

Great Plains boosted its earnings guidance to $1.30 to $1.50 per share for the full year from $1.20 to $1.40 per share, citing the weather. For the first six months of 2010, weather accounted for over 70 percent of the increase in Great Plains’ retail sales volume, adding $28 million in additional revenue.

Analysts had been predicting net income of $1.38 per share for the year.

will not be displayed