NOVI (WWJ) — Novi-based ITC Holdings Corp. (NYSE: ITC), the nation’s largest independent electric transmission company, reported net income of $47.4 million or 90 cents a share in the second quarter ended June 30, up from $42.4 million or 81 cents a share in the same quarter a year earlier.
Revenue was $229.8 million, up from $197.4 million a year earlier.
For the six months, net income was $122.1 million or $1.85 a share, up from $103.5 million or $1.70 a share in the first half of 2012. Revenue for the half was $447.1 million, up from $394.1 million a year earlier.
The company also reported operating earnings for the quarter of $63.3 million or $1.20 a share, up from $54.8 million or $1.05 a share a year earlier. Operating earnings exclude the recent acquisition of the transmission assets of the New Orleans utility holding company Entergy, as well as other one-time expenses.
ITC’s capital investments for the first half were $455.4 million, including $120.8 million at ITCTransmission, $81.8 million at Michigan Electric Transmission Co., $178.8 million at ITC Midwest and $74.0 million at ITC Great Plains.
ITC also reaffirmed operating earnings guidance at $4.80 to $5 per diluted common share for all of 2013, and its capital expenditure guidance at $760 to $860 million for the full year, which includes $200 to $230 million for ITCTransmission, $160 to $180 million for METC, $270 to $300 million for ITC Midwest and $130 to $150 million for ITC Great Plains.
“This quarter proved to be active on all fronts, both for our stand-alone business as well as for our transaction with Entergy,” said Joseph L. Welch, chairman, president and CEO of ITC. “Despite the impact of continuing inclement weather, we are making solid progress on our stand-alone plans for 2013 and remain poised to meet our overall objectives for the year. Additionally, we also have continued to progress the Entergy transaction through the various regulatory approval processes. We were pleased to receive FERC’s approval of the transaction last month and look forward to continuing to constructively work through the regulatory process at the state and local level in order to advance the transaction to a successful closing in 2013.”
ITC said its revenue rose primarily due to a higher rate base at our regulated operating subsidiaries. In addition, regional cost sharing revenues increased due to additional capital projects being placed in-service that have been identified by the Midcontinent Independent System Operator (MISO) as eligible for regional cost sharing.
For the quarter, operation and maintenance (O&M) expenses of $29.7 million were generally consistent with the same period in 2012. So were general and administrative expenses of $22.1 million.
To listen to a management discussion of these results at 11 a.m. Thursday, call (877) 644-1296 in the United States or (914) 495-8555 elsewhere. The conference call replay, available through Monday, July 29, can be accessed at (855) 859-2056 in the U.S. or (404) 537-3406, passcode 13778274. The webcast will also be archived on the ITC website, http://investor.itc-holdings.com.
ITC invests in the electric transmission grid to improve reliability, expand access to markets, lower the overall cost of delivered energy and allow new generating resources to interconnect to its transmission systems. ITC’s regulated operating subsidiaries include ITC Transmission, Michigan Electric Transmission Co., ITC Midwest and ITC Great Plains. Through these subsidiaries, ITC owns and operates high-voltage transmission facilities in Michigan, Iowa,Minnesota, Illinois, Missouri, Kansas and Oklahoma, serving a combined peak load exceeding 26,000 megawatts along 15,000 circuit miles of transmission line. Through ITC Grid Development and its subsidiaries, the company also focuses on expansion in areas where significant transmission system improvements are needed, such as areas of future wind or solar power development.