Ameren Corporation (NYSE: AEE) stock recovered after a weak start and rose over 0.5% (as of 1:10PM EDT on August 4th, 2017; Source: Google finance) leading to a total rise of over 5.7% in the last four weeks. Net income attributable to common shareholders of $193 million, or $0.79 per share in second quarter of 2017 from net income attributable to common shareholders of $147 million, or $0.61 per share in pcp.
New Ameren Missouri electric service rates effective April 1, 2017 contributed to the performance given the rising infrastructure investments and removal of the negative effect of lower sales to the New Madrid smelter. Absence of a nuclear refueling and maintenance outage at the Callaway Energy Center also contributed to earnings performance as they cut operations and maintenance expenses against the year-ago period when there was such an outage. But Ameren Missouri electric retail sales fell on the back of milder early summer temperatures.
For 2017, the group forecasts core earnings in the range of $2.70 to $2.90 per share, which is a 5-cent improvement as compared to their earlier guidance. This upgrade is driven by major Illinois grid modernization projects which could offer major customer benefits.
As per the segment performance, Ameren Missouri reported an earnings of $120 million during the second quarter of 2017 from $92 million in pcp. Ameren Illinois Electric Distribution earnings reached $33 million during the period, from $18 million in pcp. This also comprises a $9 million rise on the back of a 2017 change in the timing of interim period revenue recognition reflecting the Illinois Future Energy Jobs Act, which decoupled revenues from sales volumes. Higher allowed return on equity on the back of a better projected average 30-year U.S. Treasury bond yield in 2017 also drove the performance as compared to 2016. Ameren Illinois Natural Gas earnings reached $5 million during the second quarter of 2017 from $7 million in pcp. Ameren Transmission Segment earnings reached $34 million, from earnings of $32 million in pcp.