Entergy on Monday reported “solid” earnings in the first quarter, saying it has taken quick action to mitigate the effects of the COVID-19 pandemic.

First-quarter earnings came in at $119 million ($0.55/share), down from a year ago when earnings were $255 million ($1.32/share). Adjusted earnings were $230 million ($1.14/share), beating Zacks Investment Research analysts’ estimate of 94 cents/share.

Entergy activated its pandemic plan in mid-January. It has implemented a $100 million spending reduction for 2020 — primarily because of mild weather in the first quarter and expected bad debt from customers unable to pay their bills — and received regulatory orders to defer pandemic-related costs.

“We were prepared, and we will remain diligent, focused and flexible to ensure we make the right decisions at the right time to mitigate the effects for all of us,” CEO Leo Denault said, noting the company’s major projects remain on track and its capital plan is unchanged. “We’re stepping forward, not back, to be leaders in our communities when they need us the most.”

The pandemic continues to pose headwinds for the company. Rod West, group president of utility operations, said Entergy is expecting industrial sales to drop about 7% and commercial sales to fall 9.5%, largely as a result of refinery reductions and delays in new customers. Residential sales are projected to grow about 2%.

West said the New Orleans-based company expects industrials to return as growth drivers in 2021 and 2022 “as the commercials and residential normalize to our previous COVID-19 point of view.” Entergy expects revenue to fall by as much as $140 million because of the pandemic.

“Uncertainty remains as to the depth and length of this pandemic,” Denault said in affirming the 2020 adjusted earnings guidance range of $5.45 to $5.75/share.

Entergy continues to replace older generation with cleaner and more efficient assets, Denault said. The company brought its 980-MW gas-fired Lake Charles Power Station online months ahead of schedule in March and expects to energize its 128-MW New Orleans Power Station in June. Entergy also received regulatory approvals for two 100-MW solar farms in Arkansas and Mississippi, to be completed in 2021.

Entergy’s share price, which closed at $95.01 last week, dropped to $93.75 just before the earnings call but finished the day at $96.22.