COLUMBUS (dpa-AFX) - Utility firm American Electric Power (AEP) Friday said it expects an earnings growth of between 4 and 6 percent over the next few years and reduced the full year 2012 earnings outlook range. The company also said it plans to separate its Ohio businesses and create a competitive generation firm and a regulated wires company.
The company now expects ongoing earnings in the range of $3.05 to $3.25 per share for the full year 2012. Earlier expectation midpoint was $3.25 per share.
On average, 21 analysts polled by Thomson Reuters expect the company to earn $3.17 per share for the year. Analysts' estimates typically exclude special items.
The company said it will share its 2012 to 2014 plans, and expected capital spend, during a meeting today with investors in New York. American Electric Power would set its 2012 capital budget at $3.1 billion. Capital expenditures for 2013 and 2014 are estimated at $3.5 billion to $3.7 billion per year.
Nicholas Akins, president and chief executive officer of the company said, '...we are creating two sustainable businesses out of our Ohio assets: a competitive generation company and a regulated wires company...The competitive generation company will be able to begin accessing the potential value of its assets in 2013 and will have an opportunity to realize the full value of those assets after mid-2015 through various hedging strategies, including retail and wholesale marketing activities.
The company expects to receive decisions from the Federal Energy Regulatory Commission enabling implementation of corporate separation and termination and replacement of Interconnection Agreement in the first quarter of 2013.
During today's meeting with investors, the management would also provide an update on the company's operating subsidiaries and its generation and transmission portfolios.
AEP closed Thursday's regular trading at $39.37 on the NYSE. In the pre-market activity, the shares are up 0.58 percent.
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