American Electric cuts profit forecast, spending plan
Earnings from continuing operations, excluding one-time items, will be $2.75 to $3.05 a share, down from an earlier forecast of $3 to $3.40, Columbus, Ohio-based American Electric said in a statement. Proceeds from the planned share sale will be used to reduce debt, the company said in a separate statement.
“In addition to the effect of dilution from our planned stock issuance, the ongoing economic downturn is a significant factor in our revised guidance,” Chief Executive Officer Michael Morris said in the statement. “Retail demand for electricity, primarily from our industrial customers, is down, which has a negative impact on earnings from our regulated utilities.”
The recession also is curbing the sale of power on wholesale markets, Morris said.
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More than 3,000 applications have already been filed since the program launched on Wednesday, allowing commercial properties forced to shutter during the crisis to waive the expense for up to three months.
“To be eligible for the COVID-19 Relief Fund, business customers must be on BC Hydro’s small general service rate and have temporarily closed or ceased operation due to the COVID-19 pandemic,” BC Hydro said in a statement. “BC Hydro estimates that around 40,000 small…
