Xcel Energy on Thursday reported improved second quarter earnings despite a drop in sales due to the COVID-19 pandemic.
Executives said the Minneapolis-based company had earnings of $287 million ($0.54/share) during the quarter, reflecting lower operations and maintenance expenses, lower income taxes and favorable weather that offset sales declines. That was an improvement from last year’s second quarter, when Xcel reported earnings of $238 million ($0.46/share).
Xcel said its operating companies’ weather-normalized sales for the quarter were down 7.1% compared to last year. Commercial and industrial sales were down 11.5%, but residential sales were up 5.4%.
While executives acknowledged they are seeing some positive economic signals, the company said in its earnings release that “there continues to be substantial uncertainty related to the impact of the COVID-19 pandemic on the remainder of the year.”
CEO Ben Fowke said Xcel is still on track with its financial plan and reaffirmed the 2020 earnings guidance of $2.73-2.83/share.
“We’ll continue to monitor and manage through the economic uncertainty of this pandemic,” he said.
Xcel recently proposed a $3 billion investment plan in Minnesota. The plan includes $1.8 billion of incremental capital expenditures for repowering wind turbines, a 460-MW solar facility and $1.2 billion of accelerated transmission, distribution and natural gas investment.
Fowke said the plan would create an estimated 5,000 jobs and add more wind and solar to its Northern States Power-Minnesota system.
Xcel’s stock gained 27 cents on the NASDAQ Thursday, closing at $69/share.
