Uil Co. Ltd. · KRX:049520
Uil — Q2 2015 Earnings Presentation
18 slides from Uil's earnings presentation, Aug 5, 2015
Slide 1: 2Q '15 Earnings Presentation
2Q ‘15 Earnings PresentationAugust 6, 2015 Exhibit 99.2
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements contained in this presentation regarding matters that are not historical facts, are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). These include statements regarding management’s intentions, plans, belief
Slide 3: Important Information For Investors & Shareholders
Important Information For Investors &Shareholders Important Information For Investors And ShareholdersThis communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. This communication may be deemed to be solici
Slide 4: 2Q '15 Earnings Summary
2Q ’15 consolidated net income was $15.8M, or $0.28 per diluted share, compared to $9.3M, or $0.16 per diluted share, in the 2Q ’14YTD ’15 consolidated net income was $73.4M, or $1.28 per diluted share, compared to $64.8M, or $1.13 per diluted share, YTD ‘14Consolidated earnings for 2Q & YTD ’15 and
Slide 5: Iberdrola USA/UIL Merger
BIL UIL HOLDINGS Iberdrola USA/UIL Merger
Slide 6: Regulatory Timeline - still expect to close by year-end '15
Regulatory Timeline - still expect to close by year-end ‘15 Filings & Approvals Date Filed Estimated Action Timeframe Actions to Date Hart-Scott-Rodino 3/25/15 30 days Process completed Federal Communications Commission 5/21/15 5/22/15 FERC 3/25/15 6 – 8 months Approved 6/2/15 Committee on Foreign I
Slide 7: New CT Application filed on 7/31/15
New CT Application filed on 7/31/15 Provides commitments and identifies public interest benefitsDirect Economic Benefits Rate credits to customers (approximately $20M)Distribution base rate freeze until 2018 for SCG and CNG and until 2017 for UIContributions to a clean energy fund and disaster relie
Slide 8: UIL Holdings Stand-alone
BIL UIL HOLDINGS re. & \ ' UIL Holdings Stand-alone
Slide 9: Northeast Energy Direct (NED) - Natural Gas Pipeline Project
Northeast Energy Direct (NED) -Natural Gas Pipeline Project UIL acquired a 2.5% equity interest in the development of Kinder Morgan’s proposed NED natural gas pipeline projectCommits an initial capital investment opportunity of up to approx. $80M depending on the final pipeline configuration and des
Slide 10: Gas heating customer conversions
‘15 target is to convert at least 12,000 households & businessesConverted 3,894 households & businesses as of 6/30/15Current home heating oil prices will make it more challenging to get customers to switch to natural gasNatural gas is more cost effective than home heating oil and the benefits of nat
Slide 11: Transmission ROE Proceeding
Transmission ROE Proceeding Challenge to Transmission Base ROE: “206” complaints filed at the FERC claiming that the then current approved base ROE of 11.14% on Transmission investments is not just and reasonable 10.57% base ROE10.57% base ROE 10/16/14 and forward (subject to 2nd & 3rd Complaints)Ba
Slide 12: 2Q & YTD '15 Financial Results by Segment
2Q & YTD ‘15 Financial Results by Segment
Slide 13: 2Q & YTD '15 Financial Results - Details: Electric Distribution and Transmission
Electric Distribution2Q ’15 earnings of $10.5M, or $0.18 per diluted share, compared to earnings of $11.2M, or $0.20 per diluted share, in the 2Q ’14Decrease in earnings primarily due to –-Adjustments associated with the completion of the Internal Revenue Service’s examination of income tax years ‘0
Slide 14: Electric Transmission and Gas Distribution Results
Electric Transmission – cont.Excluding the non-recurring transmission ROE reserves, earnings recorded in the 2Q & YTD ’15 were:Decrease in earnings primarily due to –-A lower ROE as a result of the FERC’s October ‘14 order in the transmission ROE proceedingsOverall weighted-average T ROE* as of 6/30
Slide 15: Gas Distribution - cont.
Gas Distribution – cont.YTD ’15 earnings of $42.6M, or $0.74 per diluted share, compared to earnings of $36.8M, or $0.64 per diluted share, YTD ’14Increase in earnings primarily due to –-Colder weather in the 1Q ’15 compared to 1Q ’14, lower uncollectible expense, increased customer growth and the a
Slide 16: Gas Distribution and Corporate Results
Gas Distribution – cont.Preliminary 12-month avg. ROEs* as of 6/30/15: SCG 9.68-9.88%, CNG 9.45-9.65% Preliminary 12-month avg. weather normalized ROEs* as of 6/30/15: SCG 8.86-9.06%, CNG 9.45-9.65%CorporateCorporate costs were $3.9M, after-tax, or $0.06 per diluted share, in the 2Q ’15, compared to
Slide 17: Revised - 2015 Earnings Guidance
Revised - 2015 Earnings Guidance Consolidated earnings for ‘15 are expected to be in the range of $126-$134M, or $2.19-$2.34 per diluted share, compared to previously reported estimate of $126-$137M, or $2.19-$2.39 per diluted shareConsolidated earnings, excluding non-recurring items, are expected t
Slide 18: Questions
WIL UIL HOLDINGS Questions ras v