Constellation Reports "Strong" Performance Led By Commercial Energy Business, Says Customers Came To Supplier Due To Volatility

Constellation Energy Corporation today reported its financial results for the first quarter of 2023

In doing so, Constellation said a "strong" start to 2023 was led by performance of its Commercial energy business.

"We had a strong start to 2023, putting us in position to end the year comfortably in the top half of our guidance range and giving us confidence to raise our gross margin outlook for 2024," said Joe Dominguez, president and CEO of Constellation. "Our performance was led by the Commercial team as customers came to us for help managing their energy needs in a time of volatile markets, a trend we think will continue to create value for the balance of 2023 and into 2024. Our clean generation fleet also performed well during the quarter, reliably delivering affordable, carbon-free energy to homes and businesses across the country."

Constellation's Adjusted EBITDA for the first quarter of 2023 decreased to $658 million, from $866 million in the first quarter of 2022. This primarily reflects increased labor, contracting, and materials, decreased capacity revenues and unfavorable impacts of nuclear outages, partially offset by favorable market and portfolio conditions in 2023 compared to 2022, Constellation said

Constellation reported, "strong wholesale and retail performance with margin expansion."

Constellation reported that Market and Portfolio Conditions accounted for a $42 million improvement in Adjusted EBITDA versus the year-ago, offset by the drivers noted above

Constellation commenced a $1 billion share repurchase program, repurchasing approximately $250 million in the first quarter (equivalent to approximately 3.2 million shares), and paid first quarter dividend per share of $0.2820, double that of prior quarter

"We are returning significant value to our shareholders after doubling our dividend since last year and completing about a quarter of the $1 billion share repurchase program authorized in February," said Dan Eggers, chief financial officer of Constellation. "Our balance sheet remains a competitive advantage in the marketplace and is the foundation of our capital allocation strategy, which allows us to create compelling value for our shareholders."

Constellation reported that hydrogen production has commenced at what it called the nation’s first 1 MW demonstration scale, nuclear-powered clean hydrogen production facility at its Nine Mile Point Nuclear Plant in Oswego, New York

Constellation reported Q1 2023 Retail Electric Load Served by Region (TWhs) as follows:

Midwest                           9
Mid-Atlantic                     11
ERCOT                             3
New York                          4
Other/New England/South/West      7