PNM Resources reported a 5 percent increase in net income in second-quarter 2014, although earnings at the company’s New Mexico utility dropped noticeably for the second quarter in a row.
Net income for the parent company climbed from $27.7 million in the second quarter of 2013 to $29.1 million this year. Ongoing earnings — which exclude one-time gains and charges — also increased, from $30.3 million last year to $31.5 million.
But at PNM Resources’ local utility, Public Service Company of New Mexico, net income and ongoing earnings both fell significantly, down 22.3 percent and 7.4 percent, respectively. A hike in earnings at the company’s other utility, Texas New Mexico Power, helped offset those declines.
“The company remained on track in the second quarter, successfully navigating the challenges caused by lingering economic headwinds in New Mexico, while benefitting from steady growth in Texas,” said PNM Resources Chairman, President and CEO Pat Vincent Collawn in a statement.
This is the second straight quarter of declining earnings at PNM. The utility reported a 34 drop in net income in the first quarter as well, mainly because of sluggish load growth and adverse weather.
Those same factors, combined with a tax expense resulting from a settlement with the IRS, contributed to the utility’s poor performance in the second quarter.
On the other hand, net income at TNMP rose nearly 15 percent, from $8.3 million in 2013 to $9.5 million, thanks largely to rate relief and savings in operating and maintenance expenses.
Management narrowed its 2014 ongoing earnings guidance to a range of $1.44 to $1.51 per diluted share.