AEP's Q2 net income slips; sells stakes in two JV transmission projects
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American Electric Power (NASDAQ:AEP) -0.7% pre-market Thursday after reporting Q2 earnings that fell slightly and announcing a sale of its interests in two joint venture transmission projects totaling $230M.
Q2 net income slipped to $521.2M, or $1.01/share, from $524.5M, or $1.02/share, in the year-earlier quarter, and revenues fell 4% Y/Y to $4.4B, as mild weather and financial stress from inflation weighed on electricity demand in several states.
AEP (AEP) said it agreed to sell its stakes in the Prairie Wind Transmission project in Kansas and the Pioneer Transmission project in Indiana, while it continues its strategic review of the Transource Energy joint venture.
The company reiterated its forecast for FY 2023 operating earnings of $5.19-$5.39/share.
"Residential and industrial load have slowed down as expected due to the impacts of inflation and rising interest rates on our customers," AEP (AEP) President and CEO Julie Sloat said. "At the same time, we've had a significant increase in commercial load, which has grown almost 8% Y/Y in each of the last two quarters."
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