SNL Energy reported that the 25 most profitable utilities by recurring earnings before interest, taxes, depreciation and amortization (EBITDA) margin was dominated by power and diversified utilities.
Eleven diversified, 10 power and four gas utilities made it to the list of most profitable companies for the 12 months ended June 30. The median recurring EBITDA margin for these utilities in the timeframe was almost 37 percent, down almost 2 percentage points from the same timeframe last year, the report said. The mean recurring EBITDA was almost 39 percent, slightly down from last year.
TransCanada Corp. was the most profitable utility, with recurring EBITDA forming 54.4 percent of its C$9.65 billion ($8.74 billion) of the recurring operating revenue for the 12 months ending June 30. Gas utility Questar Corp. had the second-highest recurring EBITDA margin of 53.1 percent from recurring revenue of $1.2 billion. Rounding out the top five were Energen Corp., National Fuel Gas Co. and NextEra Energy Inc. (NYSE: NEE).
Ten companies saw an average increase of 2.8 percentage points in year-over-year recurring EBITDA margins for the period ending June 30, including OGE Energy Corp. (NYSE: OGE) and Ameren Corporation (NYSE: AEE). Conversely, Cleco Corp. and Fortis Inc. were among 15 companies that saw an average decrease of 2.4 percentage points in year-over-year recurring EBITDA margins.
To read the full report, click here