Constellation Energy won?t release its second quarter earnings for two more weeks, but company CEO Mayo Shattuck is willing to drop a hint: they?re going to be good.
At Constellation?s annual shareholder?s meeting Friday, Shattuck said strong performance at each of the company?s divisions led to an “exceptionally strong” quarter.
“[Earnings] will significantly exceed Wall Street?s consensus estimate of 91 cents per share,” Shattuck said. “We don?t usually give a preview of our quarter?s results, but given the timing of this meeting, and the current uncertainty in all sorts of markets, it seems only fair.”
Shattuck also said cost estimates for a third nuclear reactor at the Calvert Cliffs Nuclear Power Plant in southern Maryland are under way. The cost of the plant has risen in recent months with the price of buildings materials and general economic slowdown, and Shattuck said the company could commit to building the reactor by the middle of next year.
“Virtually all of the components and materials for a new reactor will come from abroad,” Shattuck said. “America abandoned its nuclear manufacturing base many years ago. Unfortunately that will drive the cost of new plants even higher.”
Those costs include near-record prices for steel, cement and other construction materials. Shattuck said the company would also seek loan guarantees from government sources to help finance the project.
Constellation?s cost estimate for the reactor will be based on input from several partners including Electricity de France, which is building a reactor in Flamanville, France. That project should help provide a guideline for similar Calvert Cliffs effort.
The update on the new reactor came a day after the Maryland Public Interest Research Group held a rally on front of Constellation?s downtown Baltimore headquarters to release a report favoring clean technology over new nuclear capacity.
But Shattuck said the debate over energy solutions has been clouded by politics, and a clear-eyed, facts-based approach is needed to find the best options.
“[Politicians] are feeling enormous pressure from voters squeezed by energy prices. How do you stand up during a campaign and say, ?Energy prices are going up,and there?s not a heck of a lot I can do about it.?” Shattuck said. “It?s an enormous challenge. It?s a lousy political message.”
