FirstEnergy Corp. Reports 7% Revenue Growth, Mixed Profitability in Q3 2024

FirstEnergy Corp. reported significant financial results for the third quarter and the first nine months of 2024, reflecting both revenue growth and challenges in profitability. For the three months ended September 30, 2024, total revenues reached $3,729 million, a 7% increase from $3,487 million in the same period of 2023. However, total operating expenses also rose to $3,002 million, up 6% from $2,821 million, leading to an operating income of $727 million, compared to $666 million a year earlier. Net income for the quarter was $466 million, slightly higher than $420 million in Q3 2023, while earnings attributable to FirstEnergy Corp. decreased marginally to $419 million from $421 million.

For the nine months ended September 30, 2024, FirstEnergy reported total revenues of $10,296 million, a 5.7% increase from $9,724 million in the prior year. Operating expenses increased by 6.3% to $8,534 million, resulting in a net income of $831 million, down from $984 million in the same period of 2023. The decrease in earnings was attributed to several factors, including charges related to Asset Retirement Obligations (ARO), civil penalties from investigations, and higher storm restoration expenses.

The company’s strategic developments included the consolidation of its Pennsylvania Companies into a single entity, FE PA, effective January 1, 2024, which now serves approximately 4.5 million customers. Additionally, FirstEnergy completed the sale of a 30% equity interest in FET to Brookfield for $3.5 billion, enhancing its financial position. This transaction was financed through a combination of cash and promissory notes, with Brookfield's ownership in FET increasing from 19.9% to 49.9%.

FirstEnergy's capital investments for the first nine months of 2024 totaled $2,736 million, up from $2,266 million in the same period of 2023, reflecting a focus on enhancing infrastructure and operational capabilities. The company also reported a significant increase in cash and cash equivalents, totaling $439 million as of September 30, 2024, compared to $137 million at the end of 2023.

Despite these positive developments, FirstEnergy faced challenges, including increased operating expenses and ongoing legal issues related to past corporate governance practices. The company is actively working to improve its compliance culture and has implemented measures to enhance transparency and integrity in its operations.