Boston, MA 05/08/2014 (wallstreetpr) – Avista Corp (NYSE:AVA) joined its energy peers in reporting a positive 1Q2014 that was widely supported by the colder than normal winter weather. The company also said it benefited from regulatory approval of its rate adjustments across the territories it serves.
The positive 1Q was also supported by internal adjustments that kept expenses and costs low throughout the quarter, a trend that the company is keen to maintain in the balance of 2014.
Energy companies especially utilities exited 1Q with positive performances given the favorable energy production environment and the high demand in the market. However, given that weather condition supported a majority of energy gains in 1Q, it remains to be seen how the companies perform in the rest of the year where weather may not play a big role in increasing demand.
AVA 1Q at a glance
Avista Corp (NYSE:AVA) reported 14 percent improve in profit, in 1Q2014. The increase was helped by higher energy sales and favorable rates. Therefore, the company netted income of $48.5 million or 81 cents per share for the quarter. That compared with net income of $42.3 million or 72 cents per share in the 1Q2013. Revenue in the quarter came in at $490.9 million.
The company realized 1 percent improvement in natural gas usage per customer during the quarter and 4 percent increase in electric usage per customer.
The performance in 1Q also gained support from rate increase approval for customers in Idaho, Washington and Oregon, the CEO Scott Morris said.
Asset divestment
Though market and capacity expansion are high on the company’s agenda, Avista Corp (NYSE:AVA) also seeks to monetize some assets. The company plans to sale its energy management unit Ecova. The business serves more than 700 clients and captures about 720,000 sites across North America.
The company said it is evaluating offers for the business but has not made a decision. However, if it were to fail in getting a suitor for the subsidiary, it plans to grow the business.
