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Duke Energy Corporation: Energy and Utilities Company Profile, SWOT & Financial Report

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Synopsis ICD Research's "Duke Energy Corporation: Energy and Utilities - Company Profile & SWOT Report" contains in depth information and data about the company and its operations. The profile contains a company overview, key facts,major products and services, swot analysis, business description, and company history. Summary This report is a crucial resource for industry executives and anyone looking to access key information about "Duke Energy Corporation" The report utilizes a wide range of primary and secondary sources, which are analyzed and presented in a consistent and easily accessible format. ICD Research strictly follows a standardized research methodology to ensure high levels of data quality and these characteristics guarantee a unique report. Scope • Examines and identifies key information and issues about "Duke Energy Corporation" for business intelligence requirements. • Studies and presents the company's strengths, weaknesses, opportunities (growth potential) and threats (competition). Strategic and operational business information is objectively reported. • Provides data on company financial performance and competitive benchmarking. • The profile also contains information on business operations, company history, major products and services, key employees, locations and subsidiaries. Reasons To Buy • Quickly enhance your understanding of "Duke Energy Corporation" • Gain insight into the marketplace and a better understanding of internal and external factors which could impact the industry. • Increase business/sales activities by understanding your competitors’ businesses better. • Recognize potential partnerships and suppliers. Key Highlights Duke Energy Corporation (Duke Energy) is an energy utility company. The company's business comprises generation, transmission and distribution of electricity, natural gas and related energy services. Duke Energy owns and operates regulated and unregulated power plants in North America an

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									Duke Energy Corporation

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Duke Energy Corporation                                                     Financial Snapshot

                                                                            Operating Performance
Fast Facts
                                    526 South Church Street, CHARLOTTE,     The company reported revenue of US$14,529 million
Headquarters Address
                                    28202-1803,United States of America     during the fiscal year 2011 (2011). The company's
                                                                            revenue grew at a CAGR of 3.38% during 2007–
Telephone                           + 1 704 5946200
                                                                            2011, with an annual growth of 1.80% over 2010. In
                                                                            2011, the company recorded an operating margin of
Fax                                 + 1 704 3824964                         19.06%, as against 16.17% in 2010.

Website                             www.duke-energy.com
                                                                            Revenue and Margins
Ticker Symbol, Stock Exchange       DUK, New York Stock Exchange

Number of Employees                 18,440

Fiscal Year End                     December

Revenue (in US$ million)            14,529




SWOT Analysis

Strengths                           Weaknesses                              Return on Equity

Strong bottom line performance      Increasing Debt                         The company recorded a return on equity (ROE) of
                                                                            7.49% for 2011, as compared to its peers, American
                                                                            Electric Power Company, Inc. (Ticker: AEP), Ameren
Vertically integrated operations    Lawsuits                                Corporation (Ticker: AEE) and NiSource Inc. (Ticker:
                                                                            NI), which recorded ROEs of 13.27%, 6.55% and
Vertically integrated structure                                             5.99% respectively. The company reported an
                                                                            operating margin of 19.06% in 2011.
Opportunities                       Threats
                                                                            Return on Equity
Acquisition of Arizona solar farm   Legal and political framework

                                    Weather conditions and seasonality of
Merger with Progress Energy
                                    business

Rising GDP outlook




                                                                            Liquidity Position

                                                                            The company reported a current ratio of 1.24 in 2011,
                                                                            as compared to its peers, American Electric Power
                                                                            Company, Inc., Ameren Corporation and NiSource
                                                                            Inc., which recorded current ratios of 0.63, 1.29 and
                                                                            0.62 respectively. As of December 2011, the
                                                                            company recorded cash and short-term investments
                                                                            of worth US$2,300 million, against US$1,894 million
                                                                            current debt. The company reported a debt to equity
                                                                            ratio of 0.92 in 2011 as compared to its peers,
                                                                            American Electric Power Company, Inc., Ameren
                                                                            Corporation and NiSource Inc., which recorded debt
                                                                            to equity ratios of 1.24, 0.88 and 1.59 respectively.




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Duke Energy Corporation - SWOT Profile                                                                             Page 1
Duke Energy Corporation

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Revenue and Operating Profit .........................................................................................................................10
      2.2.2       Asset and Liabilities .........................................................................................................................................11
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................12
      2.2.4       Solvency ..........................................................................................................................................................13
      2.2.5       Valuation ..........................................................................................................................................................14
    2.3       Competitive Benchmarking ..................................................................................................................................15
      2.3.1       Market Capitalization .......................................................................................................................................15
      2.3.2       Efficiency ..........................................................................................................................................................16
      2.3.3       Valuation ..........................................................................................................................................................17
      2.3.4       Turnover – Inventory and Asset .......................................................................................................................18
      2.3.5       Liquidity ............................................................................................................................................................19
3     SWOT Analysis ...................................................................................................................................... 20
    3.1       SWOT Analysis - Overview ..................................................................................................................................20
    3.2       Strengths ..............................................................................................................................................................20
    3.3       Weaknesses .........................................................................................................................................................20
    3.4       Opportunities ........................................................................................................................................................21
    3.5       Threats .................................................................................................................................................................21
4     History .................................................................................................................................................... 22
5     Key Employees ...................................................................................................................................... 24
6     Key Employee Biographies................................................................................................................... 26
7     Locations and Subsidiaries .................................................................................................................. 27
    7.1       Head Office ..........................................................................................................................................................27
    7.2       Other Locations and Subsidiaries ........................................................................................................................27
8     Appendix ................................................................................................................................................ 29
    8.1       Methodology .........................................................................................................................................................29
    8.2       Ratio Definitions ...................................................................................................................................................29
    8.3       Disclaimer.............................................................................................................................................................33




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Duke Energy Corporation - SWOT Profile                                                                                                                                       Page 2
Duke Energy Corporation

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List of Tables

Table 1: Major Products and Services....................................................................................................................................6
Table 2: Key Ratios - Annual ..................................................................................................................................................7
Table 3: Key Ratios - Interim ..................................................................................................................................................9
Table 4: Key Capital Market Indicators ..................................................................................................................................9
Table 5: History.....................................................................................................................................................................22
Table 6: Key Employees .......................................................................................................................................................24
Table 7: Key Employee Biographies ....................................................................................................................................26
Table 8: Subsidiaries ............................................................................................................................................................27




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Duke Energy Corporation - SWOT Profile                                                                                                                                     Page 3
Duke Energy Corporation

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List of Figures

Figure 1: Revenue and Operating Profit ...............................................................................................................................10
Figure 2: Financial Position ..................................................................................................................................................11
Figure 3: Net Debt vs. Gearing Ratio ...................................................................................................................................12
Figure 4: Solvency ................................................................................................................................................................13
Figure 5: Valuation ...............................................................................................................................................................14
Figure 6: Market Capitalization .............................................................................................................................................15
Figure 7: Efficiency ...............................................................................................................................................................16
Figure 8: Valuation ...............................................................................................................................................................17
Figure 9: Turnover – Inventory and Asset ............................................................................................................................18
Figure 10: Liquidity ...............................................................................................................................................................19




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Duke Energy Corporation - SWOT Profile                                                                                                                                    Page 4
Duke Energy Corporation

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1 Business Analysis

1.1   Company Overview

Duke Energy Corporation (Duke Energy) is an energy utility company. The company’s business comprises generation,
transmission and distribution of electricity, natural gas and related energy services. Duke Energy owns and operates
regulated and unregulated power plants in North America and Latin America regions. The company has its operations in
Indiana, Kentucky, North Carolina, Ohio and South Carolina in the US and in Brazil, Peru and Ecuador, El Salvador,
Guatemala and Argentina. Duke Energy supplies and distributes electricity to about four million US customers located in
five states in the Southeast and Midwest US. The company has a diverse mix of generation resources, including nuclear,
coal-fired, oil and natural gas fired, and hydroelectric power plants. Duke Energy is headquartered in Charlotte, North
Carolina, the US.

1.2   Business Description

Duke Energy Corporation (Duke Energy) is one of the largest electric power companies in the US, involves in the
generation, transmission and distribution of electricity, natural gas and related energy services. The company, along with
its subsidiaries, serves four million electric customers and 500,000 natural gas customers. It also has 35,000 MW of
electric generation capacity in Carolinas and Midwest.

The company principally operates through three business segments: US Franchised Electric and Gas, Commercial Power
and International Energy.

US Franchised Electric and Gas (USFE&G) operations segment generates, transmits, distributes and sells electricity and
transports and sells natural gas to customers in central and western North Carolina, western South Carolina, central,
north central and southern Indiana, southwestern Ohio, and northern Kentucky. The company operates this segment
through Duke Energy Carolinas, Duke Energy Ohio, Duke Energy Indiana and Duke Energy Kentucky; which are
collectively referred to as Duke Energy Midwest. As on 31 December, this segment generated 29,716 MW of electricity.
USFE&G’s service area covers 50,000 square miles and supplies electricity to four million residential, commercial and
industrial customers over 152,200 miles of distribution lines and a 20,900 mile transmission system. Furthermore,
USFE&G provides transmission and distribution services for natural gas to 500,000 customers through 7,200 miles of gas
mains and 6,000 miles of service lines. Its resource portfolio includes coal, gas, nuclear and hydro power. During FY2011,
the company’s US Franchised Electric and Gas segment contributed 72.84% towards the company’s total revenue.

Duke Energy, through its Commercial Power business segment, owns, operates and manages power plants. These plants
are primarily located in the Midwestern US. Its Commercial Power business has about 7,550 MW of owned capacity. This
segment also provides on-site energy solutions and utility services to the customers through Duke Energy Generation
Services (DEGS), a provider of on-site energy solutions and utility services. DEGS manages 4,440 MW of power
generation. In addition, DEGS has over 5,000 MW of renewable energy projects in the development pipeline with 1,002
net MW of renewable generating capacity in operation. During FY2011, the company’s Commercial Power segment
contributed 17.09% towards the company’s total revenue.
The company’s International Energy segment’s operations are located in the Latin American countries of Brazil, Peru,
Ecuador, El Salvador, Guatemala, Argentina. The company, through International Energy also owns 25% equity interest
in National Methanol Company (NMC), located in Saudi Arabia and Attiki Gas Supply S.A. (Attiki), located in Greece. The
company operates International Energy segment through Duke Energy International, LLC (DEI). During FY2011, the
company’s International Energy segment contributed 10.06% towards the company’s total revenue.
Furthermore, Duke Energy operates seven nuclear units in the Carolinas, three at Oconee Nuclear Station in Oconee
County, South Carolina and two each at Catawba Nuclear Station in York County, South Carolina and McGuire Nuclear
Station in Mecklenburg County, North Carolina. The nuclear power provides about half of the electricity used by the
company's customers in the Carolinas.

In July 2012, the company merged with Progress Energy Inc.

In May 2012, the company acquired 10MW utility-scale solar project near Kingman, Ariz., from SOLON Corp.

In February 2012, the company expanded its cooperation agreement with China Huaneng Group for research in
advanced coal and carbon capture and sequestration technologies.




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Duke Energy Corporation - SWOT Profile                                                                            Page 5
Duke Energy Corporation

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1.3     Major Products and Services

Duke Energy Corporation is one of the leading energy compani
								
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