Con Edison(US:ED)2022-08-03 16:00Financial Performance - Total operating revenues for the three months ended June 30, 2022, were $3,415 million, an increase of 14.9% from $2,971 million in the same period of 2021[22]. - Net income for the six months ended June 30, 2022, was $808 million, up 50.2% from $538 million in the same period of 2021[28]. - Operating income for the three months ended June 30, 2022, was $387 million, a decrease of 7.4% compared to $418 million in the same period of 2021[22]. - Comprehensive income for the three months ended June 30, 2022, was $260 million, compared to $167 million in the same period of 2021[24]. - Net income for the six months ended June 30, 2022, was $645 million, compared to $593 million for the same period in 2021, reflecting an increase of 8.8%[47]. - Con Edison reported net income for common stock of $255 million for the three months ended June 30, 2022, compared to $165 million for the same period in 2021, representing a 55% increase[84]. - Basic earnings per share (EPS) for the three months ended June 30, 2022, was $0.72, up from $0.48 in the same period of 2021, reflecting a 50% increase[84]. - For the six months ended June 30, 2022, net income for common stock was $857 million, compared to $584 million for the same period in 2021, indicating a 47% increase[84]. - The diluted EPS for the six months ended June 30, 2022, was $2.41, compared to $1.70 for the same period in 2021, marking a 42% increase[84]. Revenue and Expenses - Total operating expenses for the six months ended June 30, 2022, were $6,290 million, an increase of 17.1% from $5,369 million in the same period of 2021[22]. - Operating expenses for the three months ended June 30, 2022, totaled $2,626 million, an increase of 21.3% from $2,165 million in the same period of 2021[45]. - CECONY's electric revenue for the three months ended June 30, 2022, was $2,255 million, up from $1,953 million in the same period of 2021, representing a 15.5% increase[177]. - Total operating revenues for CECONY increased to $6,423 million for the six months ended June 30, 2022, compared to $5,692 million for the same period in 2021, reflecting a growth of approximately 12.9%[177]. Cash Flow and Investments - Cash flows from operating activities for the six months ended June 30, 2022, were $1,957 million, compared to $1,393 million in the same period of 2021[28]. - The company reported a net cash flow used in investing activities of $2,118 million for the six months ended June 30, 2022, compared to $2,000 million in the same period of 2021[28]. - The net change in cash for the period was $94 million for the six months ended June 30, 2022, compared to a decrease of $258 million in the same period of 2021[28]. - The company reported a total of $1,127 million in cash and temporary cash investments as of June 30, 2022, compared to $992 million at December 31, 2021, marking an increase of 13.6%[33]. - Con Edison reported a total cash, temporary cash investments, and restricted cash of $1,240 million as of June 30, 2022, compared to $1,178 million in 2021, indicating a year-over-year increase of 5.3%[87]. Assets and Liabilities - Total current assets increased to $6,016 million as of June 30, 2022, up from $5,551 million at December 31, 2021, representing an increase of 8.4%[33]. - Total liabilities and equity as of June 30, 2022, were $65,072 million, compared to $63,116 million at December 31, 2021, indicating a growth of 3.1%[37]. - The company’s total equity as of June 30, 2022, was $20,621 million, up from $20,336 million at December 31, 2021, reflecting an increase of 1.4%[37]. - The balance of shareholder's equity increased to $16,568 million as of June 30, 2022, compared to $16,312 million at the end of 2021, indicating a growth of 1.6%[58]. - The carrying amount of long-term debt for Con Edison was $22,683 million as of June 30, 2022, down from $23,044 million at the end of 2021[131]. Regulatory and Tax Matters - CECONY decreased its requested electric rate increase for January 2023 by $161 million to $1,038 million, with future increases illustrated for January 2024 and 2025 at $744 million and $615 million, respectively[89]. - CECONY's gas rate increase request for January 2023 was reduced by $101 million to $402 million, with future increases for January 2024 and 2025 at $205 million and $176 million, respectively[90]. - CECONY recorded $92 million of earnings from earnings adjustment mechanisms for the year ended December 31, 2021, primarily due to energy efficiency measures, but reported a reduction of $4.5 million for the six months ended June 30, 2022[91]. - Con Edison reported an income tax expense of $171 million for the six months ended June 30, 2022, up from $68 million for the same period in 2021, primarily due to higher income before tax and state income taxes[169]. - CECONY's income tax benefit decreased to $10 million for the three months ended June 30, 2022, down from $16 million in the same period in 2021, attributed to higher income and state taxes[168]. Environmental and Legal Matters - The estimated undiscounted potential liability for the investigation and remediation of environmental contaminants at manufactured gas plant sites could range up to $2,980 million[150]. - The accrued liability for asbestos suits at June 30, 2022, was $8 million, consistent with the amount at the end of 2021[153]. - The company accrued an estimated liability of $40 million for pending lawsuits related to the Manhattan explosion incident, with an insurance receivable of the same amount[154]. - Con Edison has approximately eighty pending lawsuits seeking unspecified damages for wrongful death, personal injury, and property damage due to the Manhattan explosion[154]. Derivative Instruments and Credit Risk - The total fair value of derivative assets for Con Edison was $842 million as of June 30, 2022, compared to $375 million at the end of 2021[194]. - Con Edison reported a net fair value of derivative assets/(liabilities) of $471 million as of June 30, 2022, compared to a net liability of $8 million at the end of 2021[194]. - The fair value of derivative instruments with credit-risk-related contingent features in a net liability position was $128 million for Con Edison and $85 million for CECONY[207]. - The Companies utilize credit policies to manage credit risk, including monitoring counterparty limits and collateral arrangements[201].