Alliant Energy misses on earnings, revenues

Alliant Energy posted fourth-quarter earnings and revenue that missed analysts' expectations, primarily due to milder weather reducing sales of electricity and natural gas.

The corporate parent of Interstate Power and Light in Cedar Rapids recorded net income of $34.1 million, or 30 cents per share, in the fourth quarter that ended on Dec. 31, down from $60 million, or 54 cents per share, in the same quarter of 2014. Analysts for Thomson Reuters were expecting earnings of 42 cents per share.

Alliant posted fourth-quarter revenue of $740.1 million, down from $804.1 million in the final quarter of 2014. Analysts were expecting revenue of $854.2 million.

For all of 2015, Madison, Wis.-based Alliant posted net income of $378.2 million, or $3.36 per share, down from $383.1 million, or $3.46 per share in 2014. Revenue dipped to $3.3 billion in 2015 from $3.4 billion the previous year.

'The temperatures in late 2015 did impact our actual year-end results,” Patricia Kampling, Alliant chairwoman, president and CEO, said in a call with analysts. 'For the first 10 months of 2015, our financial results were basically temperature neutral. But the warm weather we experienced, especially in December, resulted in a negative 8 cents per share variance in 2015 earnings.”

Full year 2015 results included a loss on the sale of Alliant's electric and gas distribution assets in Minnesota, creating a non-recurring charge of 7 cents per share against earnings. About 2 percent of Alliant employees accepted voluntary separation agreements, resulting in another one-time charge of 4 cents per share.

Kampling said Alliant has made significant progress in building an electricity generation portfolio that has lower emissions, greater fuel diversity and is more cost efficient.

'The transition included installing emission controls and performance upgrades at our largest coal-fired facilities, retiring older less efficient coal units, and increasing levels of natural-gas fired and renewable energy generation,” Kampling said.

Construction of the company's $700 million Marshalltown natural gas-fired power plant is about 75 percent complete. It is expected to begin generating electricity in the spring of 2017.