Constellation Energy on Friday reported earnings of 70 cent per share, on net income of $114 million for its first quarter ending March 31. This compares with earnings of 71 cents per share, on net incomeof $121 million for the same period a year ago. Sales for the quarter rose from $3.6 billion in 2005 to $4.9 billion in 2006, but expenses also climbed from $3.4 billion to $4.7 billion.
The company?s operating expenses for the quarter increased to 521 million this year, compared to 458 million in 2005. Constellation also spent $1.9 million in costs pertaining to its pending merger with Florida-based FPL Group. It also spent $2.2 million in work force reduction costs and $16.5 million in asset retirement obligations.
Constellation reported many bright spots in its performance.
Its commodities group, which sells energy on the wholesale market, did exceptionally well this quarter, according to Mayo A. Shattuck III, the company’s chairman and CEO.
“The commodities group made substantial progress toward meeting the new business goals we set out for the year, achieving nearly half of its total gross margin new business objective in the first quarter,” Shattuck said, during a Friday morning conference call for analysts.
To handle the brisk business, the group increased its number of employees from 452 to 638 this quarter.
The only cloud on Constellation?s horizon is its still unresolved battle with the Maryland General Assembly over rate increases due to deregulation.
