WEC Energy reports higher Q2 on acquisition adjustments

Electricity use rises

WEC Energy Group headquarters building
WEC Energy Group's Milwaukee corporate headquarters.

Milwaukee-based WEC Energy Group Inc. today reported a large increase in second quarter profits, driven by the year-ago costs of its $9.1 billion acquisition of Integrys Energy Group Inc.

WEC Energy Group headquarters building
WEC Energy Group’s Milwaukee corporate headquarters.

The company’s second quarter net income was $181.4 million, or 57 cents per diluted share, up from $80.9 million, or 35 cents per share, in the second quarter of 2015. The Integrys acquisition happened June 29, 2015, at the end of the second quarter. Earnings excluding acquisition costs were 57 cents per share in the second quarter, down from 58 cents per share in the same period a year ago.

Revenue was $1.6 billion in the second quarter, up from $991.2 million in the second quarter of 2015. Operating income was $332.1 million, up from $165.8 million in the same period a year ago.

As of the end of June, WEC’s utilities had added 38,000 customers from a year ago and its natural gas utilities had added 15,000 more customers.

Retail electricity sales for Wisconsin Electric Power Co. and Wisconsin Public Service Corp. were up 3 percent year-over-year, excluding the iron ore mines in Michigan. Residential electricity use was up 7.7 percent. Small commercial and industrial electricity use was up 2.2 percent. Large commercial and industrial use was up 0.3 percent.

“Our focus on customer service, operating efficiency and financial discipline contributed to results that place us on track for the year,” said Allen Leverett, chief executive officer.

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Molly Dill, former BizTimes Milwaukee managing editor.

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