PPL Corporation reports third-quarter 2024 earnings
PPL reported Q3 2024 earnings with GAAP earnings of $0.29 per share, compared to $0.31 in Q3 2023. Ongoing earnings were $0.42 per share versus $0.43 last year. The company narrowed its 2024 ongoing earnings forecast to $1.67-$1.73 per share, raising the midpoint to $1.70. PPL reaffirmed its projected 6-8% annual earnings and dividend growth through 2027. The company plans to invest over $3 billion in infrastructure improvements and aims to achieve O&M savings of $175 million by 2026, with $120-130 million planned by end of 2024.
PPL ha riportato i risultati del terzo trimestre 2024, con utili GAAP di $0,29 per azione, rispetto a $0,31 nel terzo trimestre 2023. Gli utili continuativi sono stati di $0,42 per azione contro i $0,43 dell'anno scorso. La società ha ristretto le previsioni di utili continuativi per il 2024 a $1,67-$1,73 per azione, alzando il valore medio a $1,70. PPL ha confermato la sua previsione di crescita annuale degli utili e dei dividendi del 6-8% fino al 2027. L'azienda prevede di investire oltre $3 miliardi in miglioramenti infrastrutturali e punta a raggiungere risparmi operativi e di manutenzione (O&M) di $175 milioni entro il 2026, con $120-130 milioni pianificati entro la fine del 2024.
PPL reportó ganancias del tercer trimestre de 2024 con ganancias GAAP de $0.29 por acción, en comparación con $0.31 en el tercer trimestre de 2023. Las ganancias continuas fueron de $0.42 por acción frente a los $0.43 del año pasado. La empresa ajustó sus pronósticos de ganancias continuas para 2024 a $1.67-$1.73 por acción, elevando la cifra media a $1.70. PPL reafirmó su proyección de crecimiento anual de ganancias y dividendos del 6-8% hasta 2027. La empresa planea invertir más de $3 mil millones en mejoras de infraestructura y tiene como objetivo lograr ahorros en O&M de $175 millones para 2026, con $120-130 millones previstos para finales de 2024.
PPL은 2024년 3분기 실적을 발표했으며, GAAP 기준 1주당 $0.29의 이익을 기록했습니다. 이는 2023년 3분기 $0.31과 비교되는 수치입니다. 지속적 이익은 1주당 $0.42로 지난해 $0.43에 비해 소폭 감소했습니다. 회사는 2024년 지속적 이익 전망을 $1.67-$1.73로 좁혔으며, 중간값을 $1.70으로 상향 조정했습니다. PPL은 2027년까지 연평균 6-8%의 이익 및 배당 성장 예상치를 재확인했습니다. 이 회사는 인프라 개선에 30억 달러 이상을 투자할 계획이며, 2026년까지 O&M 비용에서 1억 7500만 달러의 절감을 목표로 하고 있으며, 2024년 말까지 1억 2000만~1억 3000만 달러를 계획하고 있습니다.
PPL a déclaré des résultats pour le troisième trimestre 2024 avec des bénéfices GAAP de 0,29 $ par action, contre 0,31 $ au troisième trimestre 2023. Les bénéfices continus ont été de 0,42 $ par action contre 0,43 $ l'année dernière. L'entreprise a resserré ses prévisions de bénéfices continus pour 2024 à 1,67 $ - 1,73 $ par action, en relevant le point médian à 1,70 $. PPL a réaffirmé ses prévisions de croissance annuelle des bénéfices et des dividendes de 6 à 8 % jusqu'en 2027. L'entreprise prévoit d'investir plus de 3 milliards de dollars dans des améliorations d'infrastructure et vise à réaliser des économies d'O&M de 175 millions de dollars d'ici 2026, avec 120 à 130 millions de dollars prévus d'ici la fin 2024.
PPL hat die Q3 2024 Ergebnisse veröffentlicht, mit GAAP-Gewinnen von $0,29 pro Aktie, im Vergleich zu $0,31 im Q3 2023. Die fortlaufenden Gewinne betrugen $0,42 pro Aktie gegenüber $0,43 im letzten Jahr. Das Unternehmen hat seine Prognose für die fortlaufenden Gewinne 2024 auf $1,67-$1,73 pro Aktie eingegrenzt und den Mittelwert auf $1,70 angehoben. PPL hat sein geplantes jährliches Gewinn- und Dividendenwachstum von 6-8% bis 2027 bekräftigt. Das Unternehmen plant, über 3 Milliarden Dollar in Infrastrukturverbesserungen zu investieren und strebt O&M-Einsparungen von 175 Millionen Dollar bis 2026 an, mit 120-130 Millionen Dollar, die bis Ende 2024 eingeplant sind.
- Narrowed and raised 2024 earnings guidance midpoint to $1.70 per share
- Reaffirmed 6-8% annual earnings and dividend growth through 2027
- YTD ongoing earnings increased 12% to $1.34 per share from $1.20
- Planning $3 billion infrastructure investment
- Targeting $175 million in annual O&M savings by 2026
- Q3 2024 reported earnings declined 7% to $214 million from $230 million
- Q3 2024 ongoing earnings decreased 2% to $310 million from $317 million
- Higher interest expenses affecting Corporate segment performance
- Higher operating costs in Pennsylvania Regulated segment
Insights
PPL 's Q3 2024 results reveal a mixed performance with
The company's
The Kentucky segment's planned 2,700-3,200 MW capacity addition through 2039 indicates long-term growth potential, though implementation risks exist.
The integration completion of Rhode Island Energy marks a significant operational milestone, eliminating transition service agreements with National Grid. The robust storm response in Kentucky validates the company's smart grid technology investments. The growing interest from data center developers in Pennsylvania and Kentucky territories presents a promising revenue opportunity.
The Kentucky utilities' Integrated Resource Plan demonstrates a balanced approach to future capacity needs, combining natural gas, solar and battery storage. This diversification strategy aligns with both reliability requirements and environmental considerations. The
- Announces 2024 third-quarter reported earnings (GAAP) per share of
.$0.29 - Achieves 2024 third-quarter ongoing earnings per share of
vs.$0.42 in 2023.$0.43 - Narrows 2024 ongoing earnings forecast range to
to$1.67 per share and increases midpoint to$1.73 per share.$1.70 - Reaffirms projected annual earnings per share and dividend growth of
6% to8% through at least 2027.
PPL reported earnings of
Adjusting for special items, third-quarter 2024 earnings from ongoing operations (non-GAAP) were
Earnings from ongoing operations for the first nine months of 2024 were
Special items in the third quarters and first nine months of 2024 and 2023 primarily included integration and related expenses associated with the acquisition of Rhode Island Energy.
"Based on our strong year-to-date financial performance and continued execution of our business plan, we've narrowed our 2024 ongoing earnings forecast range," said Vincent Sorgi, president and chief executive officer of PPL Corporation.
In updating the company's 2024 ongoing earnings forecast range today, PPL narrowed the range to
In addition, the company reaffirmed its projection of
"As we work to close out the year, we are firmly on track to achieve our 2024 priorities," said Sorgi. "This includes investing more than
PPL's plan includes delivering targeted annual operation and maintenance savings of at least
In third-quarter highlights, PPL completed the integration of Rhode Island Energy, exiting the remaining transition service agreements that were in place with National Grid following PPL's acquisition of Rhode Island Energy in May 2022. PPL's priority at the outset of the acquisition was a smooth transition for
Also in the third quarter, PPL subsidiaries Louisville Gas and Electric and Kentucky Utilities filed their triennial Integrated Resource Plan (IRP) with the Kentucky Public Service Commission. The plan includes robust analysis of a wide range of variables – demand growth, energy efficiency, regulatory outcomes, fuel prices, etc. – to provide guidance for resource planning. The IRP envisions a need to add an estimated 2,700 MW to 3,200 MW of new natural gas, solar and battery storage through 2039 to safely, reliably and affordably serve future demand growth.
Other highlights included strong storm response in
Third-Quarter 2024 Earnings Details
As discussed in this news release, reported earnings are calculated in accordance with
(Dollars in millions, except for per share | 3rd Quarter | Year to Date | |||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | ||||||
Reported earnings | $ 214 | $ 230 | (7) % | $ 711 | $ 627 | 13 % | |||||
Reported earnings per share | $ 0.29 | $ 0.31 | (6) % | $ 0.96 | $ 0.85 | 13 % | |||||
3rd Quarter | Year to Date | ||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | ||||||
Earnings from ongoing operations | $ 310 | $ 317 | (2) % | $ 994 | $ 884 | 12 % | |||||
Earnings from ongoing operations per share | $ 0.42 | $ 0.43 | (2) % | $ 1.34 | $ 1.20 | 12 % |
Third-Quarter 2024 Earnings by Segment | |||||||
3rd Quarter | Year to Date | ||||||
Per share | 2024 | 2023 | 2024 | 2023 | |||
Reported earnings | |||||||
Kentucky Regulated | $ 0.23 | $ 0.24 | $ 0.66 | $ 0.58 | |||
Pennsylvania Regulated | 0.19 | 0.18 | 0.60 | 0.52 | |||
Rhode Island Regulated | 0.02 | 0.01 | 0.12 | 0.10 | |||
Corporate and Other | (0.15) | (0.12) | (0.42) | (0.35) | |||
Total | $ 0.29 | $ 0.31 | $ 0.96 | $ 0.85 | |||
3rd Quarter | Year to Date | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Special items (expense) benefit | |||||||
Kentucky Regulated | $ (0.01) | $ — | $ (0.01) | $ (0.01) | |||
Pennsylvania Regulated | — | (0.02) | (0.02) | (0.02) | |||
Rhode Island Regulated | (0.02) | (0.02) | (0.07) | (0.06) | |||
Corporate and Other | (0.10) | (0.08) | (0.28) | (0.26) | |||
Total | $ (0.13) | $ (0.12) | $ (0.38) | $ (0.35) | |||
3rd Quarter | Year to Date | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Earnings from ongoing operations | |||||||
Kentucky Regulated | $ 0.24 | $ 0.24 | $ 0.67 | $ 0.59 | |||
Pennsylvania Regulated | 0.19 | 0.20 | 0.62 | 0.54 | |||
Rhode Island Regulated | 0.04 | 0.03 | 0.19 | 0.16 | |||
Corporate and Other | (0.05) | (0.04) | (0.14) | (0.09) | |||
Total | $ 0.42 | $ 0.43 | $ 1.34 | $ 1.20 |
Key Factors Impacting Earnings
In addition to the segment drivers outlined below, PPL's reported earnings in the third quarter of 2024 included net special item after-tax charges of
Reported earnings in the first nine months of 2024 included net special item after-tax charges of
Kentucky Regulated Segment
PPL's Kentucky Regulated segment primarily consists of the regulated electricity and natural gas operations of Louisville Gas and Electric Company and the regulated electricity operations of Kentucky Utilities Company.
Reported earnings in the third quarter of 2024 decreased by
Reported earnings and earnings from ongoing operations in the first nine months of 2024 increased by
Pennsylvania Regulated Segment
PPL's Pennsylvania Regulated segment consists of the regulated electricity delivery operations of PPL Electric Utilities.
Reported earnings in the third quarter of 2024 increased by
Reported earnings and earnings from ongoing operations in the first nine months of 2024 increased by
Rhode Island Regulated Segment
PPL's Rhode Island Regulated segment consists of the regulated electricity and natural gas operations of Rhode Island Energy.
Reported earnings and earnings from ongoing operations in the third quarter of 2024 increased by
Reported earnings in the first nine months of 2024 increased by
Corporate and Other
PPL's Corporate and Other category primarily includes financing costs incurred at the corporate level, certain non-recoverable costs resulting from commitments made to the Rhode Island Division of Public Utilities and Carriers and the
Reported earnings in the third quarter of 2024 decreased by
Reported earnings in the first nine months of 2024 decreased by
2024 Earnings Forecast
PPL narrowed its 2024 earnings from ongoing operations forecast range to
Earnings from ongoing operations is a non-GAAP measure that could differ from reported earnings due to special items that are, in management's view, non-recurring or otherwise not reflective of the company's ongoing operations. PPL management is not able to forecast whether any of these factors will occur or whether any amounts will be reported for future periods. Therefore, PPL is not able to provide an equivalent GAAP measure for earnings guidance.
See the table at the end of this news release for a complete reconciliation of the earnings forecast.
About PPL
PPL Corporation (NYSE: PPL), headquartered in
(Note: All references to earnings per share in the text and tables of this news release are stated in terms of diluted earnings per share unless otherwise noted.)
Conference Call and Webcast
PPL invites interested parties to listen to a live internet webcast of management's teleconference with financial analysts about third-quarter 2024 financial results at 11 a.m. Eastern time on Friday, Nov. 1. The call will be webcast live, in audio format, together with slides of the presentation. For those who are unable to listen to the live webcast, a replay with slides will be accessible at www.pplweb.com/investors for 90 days after the call.
Interested individuals can access the live conference call via telephone at 1-844-512-2926. International participants should call 1-412-317-6300. Participants will need to enter the following "Elite Entry" number to join the conference: 8737672. Callers can access the webcast link at www.pplweb.com/investors under "Events."
Management utilizes "Earnings from Ongoing Operations" or "Ongoing Earnings" as a non-GAAP financial measure that should not be considered as an alternative to reported earnings, or net income, an indicator of operating performance determined in accordance with GAAP. PPL believes that Earnings from Ongoing Operations is useful and meaningful to investors because it provides management's view of PPL's earnings performance as another criterion in making investment decisions. In addition, PPL's management uses Earnings from Ongoing Operations in measuring achievement of certain corporate performance goals, including targets for certain executive incentive compensation. Other companies may use different measures to present financial performance.
Earnings from Ongoing Operations is adjusted for the impact of special items. Special items are presented in the financial tables on an after-tax basis with the related income taxes on special items separately disclosed. Income taxes on special items, when applicable, are calculated based on the statutory tax rate of the entity where the activity is recorded. Special items may include items such as:
- Gains and losses on sales of assets not in the ordinary course of business.
- Impairment charges.
- Significant workforce reduction and other restructuring effects.
- Acquisition and divestiture-related adjustments.
- Significant losses on early extinguishment of debt.
- Other charges or credits that are, in management's view, non-recurring or otherwise not reflective of the company's ongoing operations.
Statements contained in this news release, including statements with respect to future earnings, cash flows, dividends, financing, regulation and corporate strategy, are "forward-looking statements" within the meaning of the federal securities laws. Although PPL Corporation believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, these statements are subject to a number of risks and uncertainties, and actual results may differ materially from the results discussed in the statements. The following are among the important factors that could cause actual results to differ materially from the forward-looking statements: asset or business acquisitions and dispositions; pandemic health events or other catastrophic events and their effect on financial markets, economic conditions and our businesses; market demand for energy in our service territories; weather conditions affecting customer energy usage and operating costs; volatility in or the impact of other changes on financial markets, commodity prices and economic conditions, including inflation; the effect of any business or industry restructuring; the profitability and liquidity of PPL Corporation and its subsidiaries; new accounting requirements or new interpretations or applications of existing requirements; operating performance of our facilities; the length of scheduled and unscheduled outages at our generating plants; environmental conditions and requirements and the related costs of compliance; system conditions and operating costs; development of new projects, markets and technologies; performance of new ventures; any impact of severe weather on our business; receipt of necessary government permits, approvals, rate relief and regulatory cost recovery; capital market conditions and decisions regarding capital structure; the impact of state, federal or foreign investigations applicable to PPL Corporation and its subsidiaries; the outcome of litigation against PPL Corporation and its subsidiaries; PPL Corporation's stock price performance; the market prices of equity securities and the impact on pension income and resultant cash funding requirements for defined benefit pension plans; the securities and credit ratings of PPL Corporation and its subsidiaries; political, regulatory or economic conditions in jurisdictions where PPL Corporation or its subsidiaries conduct business, including any potential effects of threatened or actual cyberattack, terrorism, or war or other hostilities; new state, federal or foreign legislation, including new tax legislation; and the commitments and liabilities of PPL Corporation and its subsidiaries. Any such forward-looking statements should be considered in light of such important factors and in conjunction with factors and other matters discussed in PPL Corporation's Form 10-K and other reports on file with the Securities and Exchange Commission.
Note to Editors: Visit our media website at www.pplnewsroom.com for additional news and background about PPL Corporation.
PPL CORPORATION AND SUBSIDIARIES | |||
CONDENSED CONSOLIDATED FINANCIAL INFORMATION(1) | |||
Condensed Consolidated Balance Sheets (Unaudited) | |||
(Millions of Dollars) | |||
September 30, | December 31, | ||
2024 | 2023 | ||
Assets | |||
Cash and cash equivalents | $ 542 | $ 331 | |
Accounts receivable | 1,000 | 1,221 | |
Unbilled revenues | 319 | 428 | |
Fuel, materials and supplies | 517 | 505 | |
Regulatory assets | 342 | 293 | |
Other current assets | 254 | 154 | |
Property, Plant and Equipment | |||
Regulated utility plant | 40,097 | 38,608 | |
Less: Accumulated depreciation - regulated utility plant | 9,647 | 9,156 | |
Regulated utility plant, net | 30,450 | 29,452 | |
Non-regulated property, plant and equipment | 76 | 72 | |
Less: Accumulated depreciation - non-regulated property, plant and equipment | 28 | 23 | |
Non-regulated property, plant and equipment, net | 48 | 49 | |
Construction work in progress | 2,129 | 1,917 | |
Property, Plant and Equipment, net | 32,627 | 31,418 | |
Noncurrent regulatory assets | 1,894 | 1,874 | |
Goodwill and other intangibles | 2,561 | 2,553 | |
Other noncurrent assets | 416 | 459 | |
Total Assets | $ 40,472 | $ 39,236 | |
Liabilities and Equity | |||
Short-term debt | $ — | $ 992 | |
Long-term debt due within one year | 1 | 1 | |
Accounts payable | 920 | 1,104 | |
Other current liabilities | 1,385 | 1,243 | |
Long-term debt | 16,499 | 14,611 | |
Deferred income taxes and investment tax credits | 3,417 | 3,219 | |
Accrued pension obligations | 218 | 275 | |
Asset retirement obligations | 139 | 133 | |
Noncurrent regulatory liabilities | 3,371 | 3,340 | |
Other deferred credits and noncurrent liabilities | 430 | 385 | |
Common stock and additional paid-in capital | 12,336 | 12,334 | |
Treasury stock | (929) | (948) | |
Earnings reinvested | 2,848 | 2,710 | |
Accumulated other comprehensive loss | (163) | (163) | |
Total Liabilities and Equity | $ 40,472 | $ 39,236 |
(1) | The Financial Statements in this news release have been condensed and summarized for purposes of this presentation. Please refer to PPL Corporation's periodic filings with the Securities and Exchange Commission for full financial statements, including note disclosure. |
PPL CORPORATION AND SUBSIDIARIES | |||||||
Condensed Consolidated Statements of Income (Unaudited) | |||||||
(Millions of Dollars, except share data) | |||||||
Three Months Ended | Nine Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Operating Revenues | $ 2,066 | $ 2,043 | $ 6,251 | $ 6,281 | |||
Operating Expenses | |||||||
Operation | |||||||
Fuel | 207 | 199 | 597 | 567 | |||
Energy purchases | 338 | 356 | 1,133 | 1,430 | |||
Other operation and maintenance | 681 | 637 | 1,930 | 1,805 | |||
Depreciation | 322 | 314 | 957 | 940 | |||
Taxes, other than income | 90 | 100 | 271 | 299 | |||
Total Operating Expenses | 1,638 | 1,606 | 4,888 | 5,041 | |||
Operating Income | 428 | 437 | 1,363 | 1,240 | |||
Other Income (Expense) - net | 32 | 16 | 86 | 51 | |||
Interest Expense | 188 | 165 | 549 | 494 | |||
Income Before Income Taxes | 272 | 288 | 900 | 797 | |||
Income Taxes | 58 | 58 | 189 | 170 | |||
Net Income | $ 214 | $ 230 | $ 711 | $ 627 | |||
Earnings Per Share of Common Stock: | |||||||
Basic and Diluted | |||||||
Net Income Available to PPL Common Shareowners | $ 0.29 | $ 0.31 | $ 0.96 | $ 0.85 | |||
Weighted-Average Shares of Common Stock Outstanding (in thousands) | |||||||
Basic | 737,773 | 737,107 | 737,678 | 737,005 | |||
Diluted | 739,965 | 738,184 | 739,450 | 738,021 |
PPL CORPORATION AND SUBSIDIARIES | |||
Condensed Consolidated Statements of Cash Flows (Unaudited) | |||
(Millions of Dollars) | |||
Nine Months Ended | |||
2024 | 2023 | ||
Cash Flows from Operating Activities | |||
Net income | $ 711 | $ 627 | |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation | 957 | 940 | |
Amortization | 61 | 61 | |
Defined benefit plans - income | (52) | (55) | |
Deferred income taxes and investment tax credits | 147 | 142 | |
Other | 13 | (1) | |
Change in current assets and current liabilities | |||
Accounts receivable | 259 | (37) | |
Accounts payable | (236) | (129) | |
Unbilled revenues | 109 | 224 | |
Fuel, materials and supplies | (9) | (43) | |
Prepayments | (75) | (44) | |
Taxes payable | (8) | (15) | |
Regulatory assets and liabilities, net | (54) | (27) | |
Accrued interest | 104 | 123 | |
Other | (78) | (2) | |
Other operating activities | |||
Defined benefit plans - funding | (10) | (14) | |
Other | (10) | (102) | |
Net cash provided by operating activities | 1,829 | 1,648 | |
Cash Flows from Investing Activities | |||
Expenditures for property, plant and equipment | (1,945) | (1,741) | |
Other investing activities | 1 | 2 | |
Net cash used in investing activities | (1,944) | (1,739) | |
Cash Flows from Financing Activities | |||
Issuance of long-term debt | 1,894 | 3,127 | |
Retirement of long-term debt | — | (1,763) | |
Payment of common stock dividends | (557) | (526) | |
Net decrease in short-term debt | (992) | (698) | |
Other financing activities | (29) | (52) | |
Net cash provided by financing activities | 316 | 88 | |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 201 | (3) | |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 382 | 357 | |
Cash, Cash Equivalents and Restricted Cash at End of Period | $ 583 | $ 354 | |
Supplemental Disclosures of Cash Flow Information | |||
Significant non-cash transactions: | |||
Accrued expenditures for property, plant and equipment at September 30, | $ 281 | $ 200 |
Operating - Electricity Sales (Unaudited)(1) | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
Percent | Percent | ||||||||||
(GWh) | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||
PA Regulated Segment | |||||||||||
Retail Delivered | 9,468 | 9,363 | 1.1 % | 27,682 | 26,894 | 2.9 % | |||||
KY Regulated Segment | |||||||||||
Retail Delivered | 8,084 | 7,943 | 1.8 % | 22,696 | 21,539 | 5.4 % | |||||
Wholesale(2) | 186 | 178 | 4.5 % | 483 | 382 | 26.4 % | |||||
Total | 8,270 | 8,121 | 1.8 % | 23,179 | 21,921 | 5.7 % | |||||
Total | 17,738 | 17,484 | 1.5 % | 50,861 | 48,815 | 4.2 % |
(1) | Excludes the Rhode Island Regulated segment electricity sales as revenues are decoupled from volumes delivered. |
(2) | Represents FERC-regulated municipal and unregulated off-system sales. |
Reconciliation of Segment Reported Earnings to Earnings from Ongoing Operations | |||||||||
(After-Tax) | |||||||||
(Unaudited) | |||||||||
3rd Quarter 2024 | (millions of dollars) | ||||||||
KY | PA | RI | Corp. | ||||||
Reg. | Reg. | Reg. | & Other | Total | |||||
Reported Earnings(1) | $ 169 | $ 142 | $ 14 | $ (111) | $ 214 | ||||
Less: Special Items (expense) benefit: | |||||||||
Talen litigation costs, net of tax of | — | — | — | (2) | (2) | ||||
Strategic corporate initiatives, net of tax of | — | — | — | (2) | (2) | ||||
Acquisition integration, net of tax of | — | — | (18) | (71) | (89) | ||||
FERC transmission credit refund, net of tax of | 1 | — | — | — | 1 | ||||
ECR beneficial reuse transition adjustment, net of tax of | (4) | — | — | — | (4) | ||||
Total Special Items | (3) | — | (18) | (75) | (96) | ||||
Earnings from Ongoing Operations | $ 172 | $ 142 | $ 32 | $ (36) | $ 310 | ||||
(per share - diluted) | |||||||||
KY | PA | RI | Corp. | ||||||
Reg. | Reg. | Reg. | & Other | Total | |||||
Reported Earnings(1) | $ 0.23 | $ 0.19 | $ 0.02 | $ (0.15) | $ 0.29 | ||||
Less: Special Items (expense) benefit: | |||||||||
Acquisition integration(4) | — | — | (0.02) | (0.10) | (0.12) | ||||
ECR beneficial reuse transition adjustment(6) | (0.01) | — | — | — | (0.01) | ||||
Total Special Items | (0.01) | — | (0.02) | (0.10) | (0.13) | ||||
Earnings from Ongoing Operations | $ 0.24 | $ 0.19 | $ 0.04 | $ (0.05) | $ 0.42 |
(1) | Reported Earnings represents Net Income. |
(2) | PPL incurred legal expenses related to litigation associated with its former affiliate. |
(3) | Represents costs primarily related to PPL's corporate centralization and other strategic efforts. |
(4) | Primarily integration and related costs associated with the acquisition of Rhode Island Energy. |
(5) | Prior period impact related to a FERC refund order. |
(6) | Prior period impact of an adjustment related to the Environmental Cost Recovery mechanism revenues. |
Reconciliation of Segment Reported Earnings to Earnings from Ongoing Operations | |||||||||
(After-Tax) | |||||||||
(Unaudited) | |||||||||
Year-to-Date September 30, 2024 | (millions of dollars) | ||||||||
KY | PA | RI | Corp. | ||||||
Reg. | Reg. | Reg. | & Other | Total | |||||
Reported Earnings(1) | $ 493 | $ 441 | $ 90 | $ (313) | $ 711 | ||||
Less: Special Items (expense) benefit: | |||||||||
Talen litigation costs, net of tax of | — | — | — | (2) | (2) | ||||
Strategic corporate initiatives, net of tax of | (1) | (4) | — | (6) | (11) | ||||
Acquisition integration, net of tax of | — | — | (48) | (206) | (254) | ||||
PPL Electric billing issue, net of tax of | — | (13) | — | — | (13) | ||||
FERC transmission credit refund, net of tax of | 1 | — | — | — | 1 | ||||
ECR beneficial reuse transition adjustment, net of tax of | (4) | — | — | — | (4) | ||||
Total Special Items | (4) | (17) | (48) | (214) | (283) | ||||
Earnings from Ongoing Operations | $ 497 | $ 458 | $ 138 | $ (99) | $ 994 | ||||
(per share - diluted) | |||||||||
KY | PA | RI | Corp. | ||||||
Reg. | Reg. | Reg. | & Other | Total | |||||
Reported Earnings(1) | $ 0.66 | $ 0.60 | $ 0.12 | $ (0.42) | $ 0.96 | ||||
Less: Special Items (expense) benefit: | |||||||||
Strategic corporate initiatives(3) | — | — | — | (0.01) | (0.01) | ||||
Acquisition integration(4) | — | — | (0.07) | (0.27) | (0.34) | ||||
PPL Electric billing issue(5) | — | (0.02) | — | — | (0.02) | ||||
ECR beneficial reuse transition adjustment(7) | (0.01) | — | — | — | (0.01) | ||||
Total Special Items | (0.01) | (0.02) | (0.07) | (0.28) | (0.38) | ||||
Earnings from Ongoing Operations | $ 0.67 | $ 0.62 | $ 0.19 | $ (0.14) | $ 1.34 |
(1) | Reported Earnings represents Net Income. |
(2) | PPL incurred legal expenses related to litigation associated with its former affiliate. |
(3) | Represents costs primarily related to PPL's corporate centralization and other strategic efforts. |
(4) | Primarily integration and related costs associated with the acquisition of Rhode Island Energy. |
(5) | Certain expenses related to billing issues. |
(6) | Prior period impact related to a FERC refund order. |
(7) | Prior period impact of an adjustment related to the Environmental Cost Recovery mechanism revenues. |
Reconciliation of Segment Reported Earnings to Earnings from Ongoing Operations | |||||||||
(After-Tax) | |||||||||
(Unaudited) | |||||||||
3rd Quarter 2023 | (millions of dollars) | ||||||||
KY | PA | RI | Corp. | ||||||
Reg. | Reg. | Reg. | & Other | Total | |||||
Reported Earnings(1) | $ 175 | $ 136 | $ 6 | $ (87) | $ 230 | ||||
Less: Special Items (expense) benefit: | |||||||||
Talen litigation costs, net of tax of | — | — | — | (3) | (3) | ||||
Strategic corporate initiatives, net of tax of | — | (1) | — | (3) | (4) | ||||
Acquisition integration, net of tax of | — | — | (16) | (55) | (71) | ||||
Sale of Safari Holdings, net of tax of ( | — | — | — | 1 | 1 | ||||
PPL Electric billing issue, net of tax of | — | (8) | — | — | (8) | ||||
Other non-recurring charges, net of tax of | — | — | — | (2) | (2) | ||||
Total Special Items | — | (9) | (16) | (62) | (87) | ||||
Earnings from Ongoing Operations | $ 175 | $ 145 | $ 22 | $ (25) | $ 317 | ||||
(per share - diluted) | |||||||||
KY | PA | RI | Corp. | ||||||
Reg. | Reg. | Reg. | & Other | Total | |||||
Reported Earnings(1) | $ 0.24 | $ 0.18 | $ 0.01 | $ (0.12) | $ 0.31 | ||||
Less: Special Items (expense) benefit: | |||||||||
Acquisition integration(4) | — | — | (0.02) | (0.08) | (0.10) | ||||
PPL Electric billing issue(6) | — | (0.02) | — | — | (0.02) | ||||
Total Special Items | — | (0.02) | (0.02) | (0.08) | (0.12) | ||||
Earnings from Ongoing Operations | $ 0.24 | $ 0.20 | $ 0.03 | $ (0.04) | $ 0.43 |
(1) | Reported Earnings represents Net Income. |
(2) | Represents costs related to litigation with Talen Montana, LLC and affiliated entities. |
(3) | Represents costs primarily related to PPL's corporate centralization and other strategic efforts. |
(4) | Primarily integration and related costs associated with the acquisition of Rhode Island Energy. |
(5) | Primarily final closing and other related adjustments for the sale of Safari Holdings, LLC. |
(6) | Certain expenses related to billing issues. |
(7) | Certain expenses related to distributed energy investments. |
Reconciliation of Segment Reported Earnings to Earnings from Ongoing Operations | |||||||||
(After-Tax) | |||||||||
(Unaudited) | |||||||||
Year-to-Date September 30, 2023 | (millions of dollars) | ||||||||
KY | PA | RI | Corp. | ||||||
Reg. | Reg. | Reg. | & Other | Total | |||||
Reported Earnings(1) | $ 432 | $ 384 | $ 70 | $ (259) | $ 627 | ||||
Less: Special Items (expense) benefit: | |||||||||
Talen litigation costs, net of tax of | — | — | — | (6) | (6) | ||||
Strategic corporate initiatives, net of tax of | (1) | (1) | — | (7) | (9) | ||||
Acquisition integration, net of tax of | — | — | (46) | (159) | (205) | ||||
PA tax rate change(5) | — | 1 | — | — | 1 | ||||
Sale of Safari Holdings, net of tax of | — | — | — | (3) | (3) | ||||
PPL Electric billing issue, net of tax of | — | (15) | — | — | (15) | ||||
FERC transmission credit refund, net of tax of | (5) | — | — | — | (5) | ||||
Other non-recurring charges, net of tax of | — | — | — | (15) | (15) | ||||
Total Special Items | (6) | (15) | (46) | (190) | (257) | ||||
Earnings from Ongoing Operations | $ 438 | $ 399 | $ 116 | $ (69) | $ 884 | ||||
(per share - diluted) | |||||||||
KY | PA | RI | Corp. | ||||||
Reg. | Reg. | Reg. | & Other | Total | |||||
Reported Earnings(1) | $ 0.58 | $ 0.52 | $ 0.10 | $ (0.35) | $ 0.85 | ||||
Less: Special Items (expense) benefit: | |||||||||
Talen litigation costs(2) | — | — | — | (0.01) | (0.01) | ||||
Strategic corporate initiatives(3) | — | — | — | (0.01) | (0.01) | ||||
Acquisition integration(4) | — | — | (0.06) | (0.22) | (0.28) | ||||
PPL Electric billing issue(7) | — | (0.02) | — | — | (0.02) | ||||
FERC transmission credit refund(8) | (0.01) | — | — | — | (0.01) | ||||
Other non-recurring charges(9) | — | — | — | (0.02) | (0.02) | ||||
Total Special Items | (0.01) | (0.02) | (0.06) | (0.26) | (0.35) | ||||
Earnings from Ongoing Operations | $ 0.59 | $ 0.54 | $ 0.16 | $ (0.09) | $ 1.20 |
(1) | Reported Earnings represents Net Income. |
(2) | Represents costs related to litigation with Talen Montana, LLC and affiliated entities. |
(3) | Represents costs primarily related to PPL's corporate centralization and other strategic efforts. |
(4) | Primarily integration and related costs associated with the acquisition of Rhode Island Energy. |
(5) | Impact of |
(6) | Primarily final closing and other related adjustments for the sale of Safari Holdings, LLC. |
(7) | Certain expenses related to billing issues. |
(8) | Prior period impact related to a FERC refund order. |
(9) | Certain expenses related to distributed energy investments. |
Reconciliation of PPL's Earnings Forecast | |||||
After-Tax (Unaudited) | |||||
(per share - diluted) | |||||
2024 Forecast Range | |||||
Midpoint | High | Low | |||
Estimate of Reported Earnings | $ 1.32 | $ 1.35 | $ 1.29 | ||
Less: Special Items (expense) benefit:(1) | |||||
Strategic corporate initiatives(2) | (0.01) | (0.01) | (0.01) | ||
Acquisition integration(3) | (0.34) | (0.34) | (0.34) | ||
PPL Electric billing issue(4) | (0.02) | (0.02) | (0.02) | ||
ECR beneficial reuse transition adjustment(5) | (0.01) | (0.01) | (0.01) | ||
Total Special Items | (0.38) | (0.38) | (0.38) | ||
Forecast of Earnings from Ongoing Operations | $ 1.70 | $ 1.73 | $ 1.67 |
(1) | Reflects only special items recorded through September 30, 2024. PPL is not able to forecast special items for future periods. |
(2) | Represents costs primarily related to PPL's corporate centralization and other strategic efforts. |
(3) | Primarily integration and related costs associated with the acquisition of Rhode Island Energy. |
(4) | Certain expenses related to billing issues. |
(5) | Prior period impact of an adjustment related to the Environmental Cost Recovery mechanism revenues. |
Contacts: | For news media: Ryan Hill, 610-774-4033 |
For financial analysts: Andy Ludwig, 610-774-3389 |
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SOURCE PPL Services Corporation
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