Power company Entergy on Wednesday reported a $583.6 million loss for 2016, a massive dropoff from the $176.6 million loss reported for 2015. The utility reported a $1.8 billion loss for the fourth quarter, compared to a $99.6 million gain for the same time period in 2015.
In discussing the loss in a statement, Chairman and CEO Leo Denault cited previously disclosed charges in Entergy’s Wholesale Commodities (EWC) segment, which includes the company’s nuclear fleet. Entergy this year completed its exit from the merchant power business, which is operated by EWC, contributing to the loss. The utility has shifted its focus to growth in the regulatory utility business. Within the past year, the company has announced closure of five nuclear plants.
The New Orleans-based company owns and operates power plants that produce about 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. EWC recorded a $3.26 per-share loss on an as-reported basis for the year, compared to a $0.99 per-share loss in 2015.
“2016 was a pivotal year for our company – a year in which our objectives were ambitious and our execution was on the mark,” Denault said in his statement. “While previously disclosed charges at our EWC business led to an as-reported loss, adjusted earnings at our core Utility, Parent & Other business increased by more than 40 percent in 2016. Our strong operational results for the year are the outcome of disciplined execution on our strategy over the past few years, a strategy intended to fundamentally reposition our company and set it on a steady, predictable earnings and dividend trajectory.”
