Boston, MA 04/30/2014 (wallstreetpr) – Entergy Corporation (NYSE:ETR) has sent crews to restore power in tornadic hotbeds. The company announced increasing the number of crews working to get power supply back in shape following tornado devastation. It reported that in Mississippi power outages impacted more almost 43,000 customers. However, it was sending more workers to affected areas to help restore power supply quickly and safely.
Entergy is among the utilities whose infrastructures have been impacted by tornado, and while the company did not reveal the extent of the damage to its facilities, it is likely to experience impact on its revenue in the current quarter.
The company reports Q22014 in late July.
Cost of supply interruption
Interruption of power supply to customers is poses big headache to energy companies. There is usually a loss of revenue especially when power is not restored on time. However, Entergy expects that it will be able to minimize the impact of the tornado on its business by addressing the issues as fast as possible.
However, another challenge to power interruption is the high costs of making the repair work on damaged facilities. Moreover, the management of the whole project of power restoration can weigh on the company’s reputation especially when the customers consider the response to be poor.
Entergy Corporation (NYSE:ETR) expects to emerge from the challenge with a positive image. That explains why the company has not only announced additional workforce to the affected areas, but also issued safety guidelines and hotline for customers to make contact at will over their power issues.
Impact to profit
Utility companies are trying to limit impact to their profits in efforts to create a bigger value for the shareholders. However, the impact of weather is threatening that value creation.
Entergy Corporation (NYSE:ETR) reported earnings of $401.2 million or $2.24 per share Q12014. That compared with $161.4 million or $0.90 per share in Q12013. The company gained from the higher demand for energy during the harsh winter weather. However, tornado might impact Q22014 results if energy demand in summer does not come as expected.
