DULUTH, Minn. - ALLETE, Inc. (NYSE: ALE) today reported a decrease in first-quarter earnings for 2024, with earnings per share (EPS) of $0.88 on net income of $50.7 million.
This represents a decline from the first quarter of 2023, where the company posted an EPS of $1.02 on net income of $58.2 million. The company's first-quarter revenue also saw a decline, coming in at $403.3 million, down from $564.9 million in the same quarter last year, and falling short of the analyst consensus estimate of $456.92 million.
The company's regulated operations, including Minnesota Power and Superior Water, Light and Power, reported an increase in net income to $44.2 million, up from $40.6 million in the previous year's first quarter. This increase was primarily attributed to the implementation of interim rates, despite a reserve of $3.9 million after-tax for the interim rate refund as a result of a rate case settlement. However, ALLETE Clean Energy reported a decrease in net income to $3.8 million compared to $8.5 million in the first quarter of 2023, affected by forced network and transformer outages at its wind energy facilities.
Corporate and other businesses, including New Energy, BNI Energy, and ALLETE Properties, recorded a decrease in net income to $2.7 million, down from $9.1 million in the previous year. This was partly due to lower earnings from Minnesota solar projects as investment tax credits were recognized in 2023, and increased income tax and interest expenses.
ALLETE's Chair, President, and CEO Bethany Owen expressed pride in the team's efforts to execute their Sustainability in Action strategy, noting progress in Minnesota Power's proposals for new solar and wind projects and ALLETE Clean Energy's sale of production tax credits under the Inflation Reduction Act.
Despite the mixed financial results, ALLETE's management highlighted that the regulated operations segment performed ahead of internal expectations when excluding the impacts of warmer weather and interim rate reserves. Steve Morris, ALLETE's Senior Vice President and CFO, stated that New Energy's financial results met expectations, while ALLETE Clean Energy's results were below expectations due to lower wind resources and availability, as well as outages.
As a result of a merger agreement with Canada Pension Plan Investment Board and Global Infrastructure Partners, ALLETE has canceled its earnings conference call previously scheduled for May 9, 2024. The company continues to focus on its energy operations and investments in renewable energy facilities.
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