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CEG Nasdaq· Constellation Energy Corporation
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CEG Nasdaq· Constellation Energy Corporation
Earnings report Q3 2023

CEG Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, Constellation Energy Generation (CEG) reported total operating revenues of $6.11 billion, an increase of 1% compared to the same quarter last year. The revenue breakdown by segment is as follows:

  • Mid-Atlantic: Revenues of $4.14 billion, representing the largest segment for CEG.
  • Midwest: Revenues of $3.71 billion.
  • New York: Revenues of $1.42 billion.
  • ERCOT: Revenues of $979 million.
  • Other Power Regions: Revenues of $3.77 billion.

Strengths

CEG demonstrated strong revenue growth in the latest quarter, with a 1% increase compared to the same period last year. This growth can be attributed to favorable net generation revenue and CMC activity in the Midwest segment, driven by higher generation volume and realized prices relative to purchased power. Additionally, CEG benefited from settled economic hedges and favorable ZEC (Zero Emission Credits) revenue in the Midwest segment. The company's management highlighted the recognition of revenue for Illinois ZECs delivered in prior planning years as a significant contributor to the positive performance.

Challenges

Despite the overall revenue growth, CEG faced some challenges in the latest quarter. The company experienced unfavorable wholesale load revenue primarily due to lower volumes. Additionally, there was a decrease in the ZEC price in the current planning year, resulting in unfavorable ZEC revenue. CEG also encountered unfavorable retail load revenue due to lower contracted energy prices, partially offset by higher load volumes.

Noteworthy

It is worth noting that CEG's total operating revenues for the nine months ended September 30, 2023, amounted to $19.12 billion, a significant increase of 12% compared to the same period last year. This growth can be attributed to various factors, including favorable net generation revenue, settled economic hedges, and the recognition of revenue for Illinois ZECs delivered in prior planning years.

Summary

CEG reported strong revenue growth in the latest quarter, with a 1% increase compared to the same period last year. The company's performance was driven by favorable net generation revenue, settled economic hedges, and the recognition of revenue for Illinois ZECs delivered in prior planning years. However, CEG faced challenges such as unfavorable wholesale load revenue, a decrease in the ZEC price, and lower contracted energy prices. Overall, CEG's revenue performance for the nine months ended September 30, 2023, showed a significant increase of 12% compared to the same period last year.

Source documents

Form 10-Q  filed on Nov 06, 2023
18 pages scanned

Reference data

Company financials Q3 revenue 5.80B
Analyst estimates Q3 EPS missed by -25.36%
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