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Dec 31, 2020
Ameren Q4 2020 Earnings Report
Ameren's Q4 2020 earnings increased due to infrastructure investments and new electric service rates, offset by increased interest expense and lower return on equity.
Key Takeaways
Ameren Corporation reported net income attributable to common shareholders of $115 million, or 46 cents per diluted share, for the three months ended December 31, 2020, compared to $94 million, or 38 cents per diluted share, for the same period in 2019. The increase was driven by infrastructure investments, new electric service rates, and lower operations and maintenance expenses.
Q4 2020 earnings increased due to increased infrastructure investments across all business segments.
New Ameren Missouri electric service rates effective April 1, 2020, positively impacted earnings.
Lower operations and maintenance expenses, primarily at Ameren Missouri, contributed to the earnings increase.
Increased interest expense and a lower allowed return on equity at Ameren Illinois Electric Distribution partially offset the favorable factors.
Ameren
Ameren
Ameren Revenue by Segment
Revenue by Segment
Ameren Missouri Revenue
CapyFin.comAmeren Illinois Electric Dist. Revenue
CapyFin.comAmeren Transmission Revenue
CapyFin.comAmeren Illinois Natural Gas Revenue
CapyFin.com Forward Guidance
Ameren expects 2021 diluted earnings per share to be in a range of $3.65 to $3.85 and diluted earnings per share to grow at a 6% to 8% compound annual rate from 2021 through 2025.
Positive Outlook
- Strong projected rate base growth of approximately 8% compounded annually from 2020 through 2025.
- Increase to our quarterly dividend, which marked the eighth consecutive year of growth.
- Future dividend growth to be in line with its long-term earnings-per-share growth expectations and within a payout ratio of 55% to 70%.
- Robust pipeline of critical infrastructure investments to modernize the energy grid
- Transition to a cleaner energy portfolio in a responsible fashion.
Challenges Ahead
- Impacts of COVID-19
- 30-year U.S. Treasury bond yields
- Regulatory, judicial and legislative actions
- Energy center and energy distribution operations
- Energy, economic, capital and credit market conditions
Revenue & Expenses
Visualization of income flow from segment revenue to net income