- Announces 2022 third-quarter reported earnings (GAAP) per
share of $0.24.
- Achieves 2022 third-quarter ongoing earnings per share of
$0.41 vs. $0.36 in 2021.
- Raises the midpoint of 2022 ongoing earnings forecast to
$1.40 per share from $1.37 and narrows forecast range to $1.35 to $1.45 per
share.
ALLENTOWN, Pa., Nov. 4, 2022
/PRNewswire/ -- PPL Corporation (NYSE: PPL) today announced
third-quarter 2022 reported earnings (GAAP) of $174 million, or $0.24 per share, compared with third-quarter 2021
reported earnings of $207 million, or
$0.27 per share.
PPL reported earnings of $566
million, or $0.77 per share,
for the first nine months of 2022, compared with the reported net
loss of $1.61 billion, or
$2.10 per share, for the first nine
months of 2021.
Adjusting for special items, third-quarter 2022 earnings from
ongoing operations (non-GAAP) were $305
million, or $0.41 per share,
compared with $277 million, or
$0.36 per share, a year ago.
Earnings from ongoing operations for the first nine months of
2022 were $832 million, or
$1.13 per share, compared with
$643 million, or $0.83 per share, for the first nine months of
2021.
Special items in the third quarter of 2022 primarily included
integration and related expenses associated with the acquisition of
Rhode Island Energy and impacts associated with the sale of Safari
Holdings LLC, which was completed on Nov. 1,
2022. Special items in 2021 included a loss on the early
extinguishment of debt.
"As we execute our strategy to create technology-enabled
utilities of the future and deliver the clean energy transition
reliably and affordably, we continue to demonstrate strong
operational and financial performance," said PPL President and
Chief Executive Officer Vincent
Sorgi. "Based on our financial performance year-to-date, we
have increased the midpoint of our earnings forecast from
$1.37 per share to $1.40 per share."
PPL also narrowed its 2022 ongoing earnings forecast to a range
of $1.35 to $1.45 per share from the prior forecast range of
$1.30 to $1.45 per share. As with the prior forecast,
PPL's narrowed 2022 ongoing earnings guidance reflects a
partial-year estimate of contributions from Rhode Island Energy,
with the acquisition completed by PPL on May
25, 2022.
Looking forward, Sorgi said PPL also remains confident in its
plan to deliver top-tier annual earnings per share and dividend
growth of 6% to 8% annually. PPL's projected compound annual
earnings per share and dividend growth of 6% to 8% through at least
2025 is based off its 2022 pro forma forecast range of $1.40 to $1.55 per
share, with a midpoint of $1.48 per
share. The pro forma forecast range reflects a full year of
earnings contributions from Rhode Island Energy.
Third-Quarter 2022 Earnings Details
As discussed in this news release, reported earnings are
calculated in accordance with U.S. Generally Accepted Accounting
Principles (GAAP). "Earnings from ongoing operations" is a non-GAAP
financial measure that is adjusted for special items. See the
tables at the end of this news release for a reconciliation of
reported earnings (net income) to earnings from ongoing operations,
including an itemization of special items.
(Dollars in
millions, except for per share amounts)
|
3rd
Quarter
|
|
Year to
Date
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
Reported
earnings
|
$ 174
|
|
$ 207
|
|
(16) %
|
|
$ 566
|
|
$
(1,614)
|
|
NM*
|
Reported earnings per
share
|
$ 0.24
|
|
$ 0.27
|
|
(11) %
|
|
$ 0.77
|
|
$
(2.10)
|
|
NM*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
Year to
Date
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
Earnings from ongoing
operations
|
$ 305
|
|
$ 277
|
|
10 %
|
|
$ 832
|
|
$ 643
|
|
29 %
|
Earnings from ongoing
operations per share
|
$ 0.41
|
|
$ 0.36
|
|
14 %
|
|
$ 1.13
|
|
$ 0.83
|
|
36 %
|
*NM: Not
meaningful
|
Third-Quarter 2022 Earnings by Segment
|
3rd
Quarter
|
|
Year to
Date
|
Per
share
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Reported
earnings
|
|
|
|
|
|
|
|
Kentucky
Regulated
|
$
0.21
|
|
$
0.21
|
|
$
0.59
|
|
$
0.51
|
Pennsylvania
Regulated
|
0.19
|
|
0.16
|
|
0.55
|
|
0.43
|
Rhode Island
Regulated
|
(0.03)
|
|
—
|
|
(0.07)
|
|
—
|
Corporate and
Other
|
(0.13)
|
|
(0.10)
|
|
(0.30)
|
|
(1.10)
|
Discontinued
Operations
|
—
|
|
—
|
|
—
|
|
(1.94)
|
Total
|
$
0.24
|
|
$
0.27
|
|
$
0.77
|
|
$
(2.10)
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
Year to
Date
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Special items
(expense) benefit
|
|
|
|
|
|
|
|
Kentucky
Regulated
|
$
—
|
|
$
—
|
|
$
(0.01)
|
|
$
0.01
|
Pennsylvania
Regulated
|
0.01
|
|
—
|
|
0.01
|
|
(0.03)
|
Rhode Island
Regulated
|
(0.07)
|
|
—
|
|
(0.12)
|
|
—
|
Corporate and
Other
|
(0.11)
|
|
(0.09)
|
|
(0.24)
|
|
(0.97)
|
Discontinued
Operations
|
—
|
|
—
|
|
—
|
|
(1.94)
|
Total
|
$
(0.17)
|
|
$
(0.09)
|
|
$
(0.36)
|
|
$
(2.93)
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
Year to
Date
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Earnings from
ongoing operations
|
|
|
|
|
|
|
|
Kentucky
Regulated
|
$
0.21
|
|
$
0.21
|
|
$
0.60
|
|
$
0.50
|
Pennsylvania
Regulated
|
0.18
|
|
0.16
|
|
0.54
|
|
0.46
|
Rhode Island
Regulated
|
0.04
|
|
—
|
|
0.05
|
|
—
|
Corporate and
Other
|
(0.02)
|
|
(0.01)
|
|
(0.06)
|
|
(0.13)
|
Total
|
$
0.41
|
|
$
0.36
|
|
$
1.13
|
|
$
0.83
|
Key Factors Impacting Earnings
In addition to the segment drivers outlined below, PPL's
reported earnings in the third quarter of 2022 included net
special-item after-tax charges of $131
million, or $0.17 per share,
primarily attributable to integration and related expenses
associated with the acquisition of Rhode Island Energy and impacts
associated with the sale of Safari Holdings LLC. Reported earnings
in the third quarter of 2021 included net special-item after-tax
charges of $70 million, or
$0.09 per share, primarily
attributable to a loss on the early extinguishment of debt.
Reported earnings in the first nine months of 2022 included net
special-item after-tax charges of $266
million, or $0.36 per share,
primarily attributable to integration and related expenses
associated with the acquisition of Rhode Island Energy and impacts
associated with the sale of Safari Holdings LLC. Reported earnings
in the first nine months of 2021 included net special-item
after-tax charges of $2.26 billion,
or $2.93 per share, primarily
attributable to discontinued operations associated with the U.K.
utility business, a U.K. tax rate change and a loss on the early
extinguishment of debt.
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 and earnings from ongoing operations in the
third quarter of 2022 were even compared with a year ago. Factors
driving earnings results primarily included share accretion, offset
by other factors that were not individually significant.
Reported earnings in the first nine months of 2022 increased by
$0.08 per share compared with a year
ago. Earnings from ongoing operations in the first nine months of
2022 increased by $0.10 per share
compared with a year ago. Factors driving earnings results
primarily included higher retail rates effective July 1, 2021, higher sales volumes and share
accretion, partially offset by higher operation and maintenance
expense and higher depreciation expense.
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 2022 increased by
$0.03 per share compared with a
year ago. Earnings from ongoing operations in the third quarter of
2022 increased by $0.02 compared with
a year ago. Factors driving earnings results primarily included
lower operation and maintenance expense and share accretion.
Reported earnings for the first nine months of 2022 increased by
$0.12 per share compared with a year
ago. Earnings from ongoing operations for the first nine months of
2022 increased by $0.08 per share
compared with a year ago. Factors driving earnings results
primarily included higher peak transmission demand, returns on
additional capital investments in transmission, higher sales
volumes and share accretion, partially offset by higher operation
and maintenance expense.
Rhode Island Energy
PPL's Rhode Island Regulated segment consists of the regulated
electricity and natural gas operations of Rhode Island Energy,
which was acquired on May 25,
2022.
The Rhode Island Regulated Segment reported a net loss of
$0.03 per share in the third quarter
of 2022 and a net loss of $0.07 per
share since the acquisition in May. The losses were primarily due
to integration expenses and related costs associated with the
acquisition, which were treated as special items. Adjusting for the
special items, PPL's earnings from ongoing operations increased by
$0.04 per share in the third quarter
and $0.05 per share since acquisition
due to the addition of Rhode Island Energy to PPL's ongoing
earnings results.
Corporate and Other
PPL's Corporate and Other category primarily includes financing
costs incurred at the corporate level that have not been allocated
or assigned to the segments, certain non-recoverable costs
resulting from commitments made to the Rhode Island Division of
Public Utilities and Carriers and the Rhode Island Attorney General's Office in
conjunction with the acquisition of Rhode Island Energy, and
certain other unallocated costs.
Reported earnings in the third quarter of 2022 decreased by
$0.03 per share compared with a year
ago. Earnings from ongoing operations in the third quarter of 2022
decreased by $0.01 per share compared
with a year ago due to factors that were not individually
significant.
Reported earnings in the first nine months of 2022 increased by
$0.80 per share from a year ago.
Earnings from ongoing operations in the first nine months of 2022
increased by $0.07 per share from a
year ago. Factors driving earnings results primarily included lower
interest expense from less outstanding holding company debt.
2022 Earnings Forecast
PPL narrowed its 2022 earnings from ongoing operations forecast
to a range of $1.35 to $1.45 per share from a prior forecast range of
$1.30 to $1.45 per share, increasing the midpoint to
$1.40 per share.
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), based in Allentown, Pennsylvania, is a leading U.S.
energy company focused on providing electricity and natural gas
safely, reliably and affordably to 3.5 million customers in the
U.S. PPL's high-performing, award-winning utilities are addressing
energy challenges head-on by building smarter, more resilient and
more dynamic power grids and advancing sustainable energy
solutions. For more information, visit www.pplweb.com.
(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 2022 financial results at 11 a.m. Eastern time on Friday, Nov. 4. 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 1-888-346-8683. International participants
should call 1-412-902-4270. Participants will need to enter the
following "Elite Entry" number to join the conference: 0581347.
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; the coronavirus pandemic or other
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 in 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; 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,
|
|
2022
|
|
2021
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
303
|
|
$
3,571
|
Accounts
receivable
|
926
|
|
641
|
Unbilled
revenues
|
313
|
|
307
|
Fuel, materials and
supplies
|
422
|
|
322
|
Regulatory
assets
|
234
|
|
64
|
Other current
assets
|
197
|
|
102
|
Current assets held for
sale
|
325
|
|
—
|
Property, Plant and
Equipment
|
|
|
|
Regulated utility
plant
|
36,408
|
|
30,477
|
Less: Accumulated
depreciation - regulated utility plant
|
8,179
|
|
6,488
|
Regulated utility
plant, net
|
28,229
|
|
23,989
|
Non-regulated
property, plant and equipment
|
93
|
|
266
|
Less: Accumulated
depreciation - non-regulated property, plant and
equipment
|
45
|
|
41
|
Non-regulated
property, plant and equipment, net
|
48
|
|
225
|
Construction work in
progress
|
1,617
|
|
1,256
|
Property, Plant and
Equipment, net
|
29,894
|
|
25,470
|
Noncurrent regulatory
assets
|
1,715
|
|
1,236
|
Goodwill and other
intangibles
|
2,556
|
|
1,059
|
Other noncurrent
assets
|
493
|
|
451
|
Total
Assets
|
$
37,378
|
|
$
33,223
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Short-term
debt
|
$
510
|
|
$
69
|
Long-term debt due
within one year
|
264
|
|
474
|
Accounts
payable
|
968
|
|
679
|
Other current
liabilities
|
1,368
|
|
1,101
|
Current liabilities
held for sale
|
205
|
|
—
|
Long-term
debt
|
12,977
|
|
10,666
|
Deferred income taxes
and investment tax credits
|
3,094
|
|
3,270
|
Accrued pension
obligations
|
212
|
|
183
|
Asset retirement
obligations
|
144
|
|
157
|
Noncurrent regulatory
liabilities
|
3,381
|
|
2,422
|
Other deferred credits
and noncurrent liabilities
|
371
|
|
479
|
Common stock and
additional paid-in capital
|
12,325
|
|
12,311
|
Treasury
stock
|
(972)
|
|
(1,003)
|
Earnings
reinvested
|
2,658
|
|
2,572
|
Accumulated other
comprehensive loss
|
(130)
|
|
(157)
|
Noncontrolling
interests
|
3
|
|
—
|
Total Liabilities
and Equity
|
$
37,378
|
|
$
33,223
|
|
|
(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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Operating
Revenues
|
$
2,134
|
|
$
1,512
|
|
$
5,612
|
|
$
4,298
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
Operation
|
|
|
|
|
|
|
|
Fuel
|
267
|
|
195
|
|
708
|
|
531
|
Energy
purchases
|
436
|
|
167
|
|
1,093
|
|
524
|
Other operation and
maintenance
|
678
|
|
393
|
|
1,671
|
|
1,164
|
Depreciation
|
312
|
|
274
|
|
872
|
|
810
|
Taxes, other than
income
|
100
|
|
52
|
|
230
|
|
153
|
Total Operating
Expenses
|
1,793
|
|
1,081
|
|
4,574
|
|
3,182
|
|
|
|
|
|
|
|
|
Operating
Income
|
341
|
|
431
|
|
1,038
|
|
1,116
|
|
|
|
|
|
|
|
|
Other Income (Expense)
- net
|
10
|
|
12
|
|
36
|
|
25
|
|
|
|
|
|
|
|
|
Interest
Expense
|
136
|
|
183
|
|
361
|
|
810
|
|
|
|
|
|
|
|
|
Income from
Continuing Operations Before Income Taxes
|
215
|
|
260
|
|
713
|
|
331
|
|
|
|
|
|
|
|
|
Income Taxes
|
41
|
|
51
|
|
147
|
|
455
|
|
|
|
|
|
|
|
|
Income (Loss) from
Continuing Operations After Income Taxes
|
174
|
|
209
|
|
566
|
|
(124)
|
|
|
|
|
|
|
|
|
Income (Loss) from
Discontinued Operations (net of income taxes)
|
—
|
|
(2)
|
|
—
|
|
(1,490)
|
|
|
|
|
|
|
|
|
Net Income
(Loss)
|
$
174
|
|
$
207
|
|
$
566
|
|
$
(1,614)
|
|
|
|
|
|
|
|
|
Earnings Per Share
of Common Stock:
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
|
|
|
|
Income (Loss) from
Continuing Operations After Income Taxes
|
$
0.24
|
|
$
0.27
|
|
$
0.77
|
|
$
(0.16)
|
Income (Loss) from
Discontinued Operations (net of income taxes)
|
—
|
|
—
|
|
—
|
|
(1.94)
|
Net Income (Loss)
Available to PPL Common Shareowners
|
$
0.24
|
|
$
0.27
|
|
$
0.77
|
|
$
(2.10)
|
|
|
|
|
|
|
|
|
Weighted-Average
Shares of Common Stock Outstanding (in thousands)
|
|
|
|
|
|
|
|
Basic
|
736,247
|
|
767,733
|
|
735,912
|
|
768,781
|
Diluted
|
737,074
|
|
769,849
|
|
736,679
|
|
768,781
|
PPL
CORPORATION AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
(Millions of
Dollars)
|
|
|
Nine Months Ended
September 30,
|
|
2022
|
|
2021
|
Cash Flows from
Operating Activities
|
|
|
|
Net income
(loss)
|
$
566
|
|
$
(1,614)
|
Loss from discontinued
operations (net of income taxes)
|
—
|
|
1,490
|
Income (Loss) from
continuing operations (net of income taxes)
|
566
|
|
(124)
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
Depreciation
|
872
|
|
810
|
Amortization
|
30
|
|
30
|
Deferred income taxes
and investment tax credits
|
55
|
|
51
|
Impairment of assets
held for sale
|
67
|
|
—
|
Loss on extinguishment
of debt
|
—
|
|
395
|
Other
|
32
|
|
44
|
Change in current
assets and current liabilities
|
|
|
|
Accounts
receivable
|
(103)
|
|
(25)
|
Accounts
payable
|
120
|
|
(32)
|
Unbilled
revenues
|
42
|
|
67
|
Fuel, materials and
supplies
|
(71)
|
|
3
|
Taxes
payable
|
(14)
|
|
75
|
Regulatory assets and
liabilities, net
|
(158)
|
|
50
|
Accrued
interest
|
59
|
|
25
|
Other
|
29
|
|
10
|
Other operating
activities
|
|
|
|
Defined benefit plans
- funding
|
(8)
|
|
(41)
|
Other
|
(7)
|
|
(86)
|
Net cash provided by
operating activities - continuing operations
|
1,511
|
|
1,252
|
Net cash provided by
operating activities - discontinued operations
|
—
|
|
726
|
Net cash provided by
operating activities
|
1,511
|
|
1,978
|
Cash Flows from
Investing Activities
|
|
|
|
Expenditures for
property, plant and equipment
|
(1,515)
|
|
(1,460)
|
Acquisition of
Narragansett Electric, net of cash acquired
|
(3,674)
|
|
—
|
Proceeds from sale of
discontinued operations, net of cash divested
|
—
|
|
10,560
|
Other investing
activities
|
3
|
|
(22)
|
Net cash provided by
(used in) investing activities - continuing operations
|
(5,186)
|
|
9,078
|
Net cash provided by
(used in) investing activities - discontinued operations
|
—
|
|
(607)
|
Net cash provided by
(used in) investing activities
|
(5,186)
|
|
8,471
|
Cash Flows from
Financing Activities
|
|
|
|
Issuance of long-term
debt
|
850
|
|
650
|
Retirement of
long-term debt
|
(263)
|
|
(4,606)
|
Payment of common
stock dividends
|
(620)
|
|
(961)
|
Purchase of treasury
stock
|
—
|
|
(282)
|
Retirement of term
loan
|
—
|
|
(300)
|
Retirement of
commercial paper
|
—
|
|
(73)
|
Net increase
(decrease) in short-term debt
|
441
|
|
(795)
|
Other financing
activities
|
(1)
|
|
(3)
|
Net cash provided by
(used in) financing activities - continuing operations
|
407
|
|
(6,370)
|
Net cash provided by
(used in) financing activities - discontinued operations
|
—
|
|
(411)
|
Contributions from
discontinued operations
|
—
|
|
365
|
Net cash provided by
(used in) financing activities
|
407
|
|
(6,416)
|
Effect of Exchange
Rates on Cash, Cash Equivalents and Restricted Cash included in
Discontinued Operations
|
—
|
|
8
|
Net Decrease in
Cash, Cash Equivalents and Restricted Cash included in Discontinued
Operations
|
—
|
|
284
|
Net Increase
(Decrease) in Cash, Cash Equivalents and Restricted
Cash
|
(3,268)
|
|
4,325
|
Cash, Cash Equivalents
and Restricted Cash at Beginning of Period
|
3,572
|
|
443
|
Cash, Cash Equivalents
and Restricted Cash at End of Period
|
$
304
|
|
$
4,768
|
|
|
|
|
Supplemental
Disclosures of Cash Flow Information
|
|
|
|
Significant non-cash
transactions:
|
|
|
|
Accrued expenditures
for property, plant and equipment at September 30,
|
$
239
|
|
$
214
|
Operating -
Electricity Sales (Unaudited)(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
|
|
Nine Months
Ended
September 30,
|
|
|
|
|
|
|
|
Percent
|
|
|
|
|
|
Percent
|
(GWh)
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
PA Regulated
Segment
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Delivered
|
9,685
|
|
9,642
|
|
0.4 %
|
|
28,434
|
|
28,046
|
|
1.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
KY Regulated
Segment
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Delivered
|
8,107
|
|
8,100
|
|
0.1 %
|
|
22,886
|
|
22,593
|
|
1.3 %
|
Wholesale(2)
|
183
|
|
288
|
|
(36.5) %
|
|
683
|
|
755
|
|
(9.5) %
|
Total
|
8,290
|
|
8,388
|
|
(1.2) %
|
|
23,569
|
|
23,348
|
|
0.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
17,975
|
|
18,030
|
|
(0.3) %
|
|
52,003
|
|
51,394
|
|
1.2 %
|
|
|
(1)
|
Excludes Rhode Island
Energy's sales volumes as its revenue is decoupled.
|
(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
2022
|
(millions of
dollars)
|
|
KY
|
|
PA
|
|
RI
|
|
Corp.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Total
|
Reported
Earnings(1)
|
$
153
|
|
$
143
|
|
$
(26)
|
|
$
(96)
|
|
$
174
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
Strategic corporate
initiatives, net of tax of $0(2)
|
(2)
|
|
—
|
|
—
|
|
—
|
|
(2)
|
Acquisition
integration, net of tax of $14, $6(3)
|
—
|
|
—
|
|
(54)
|
|
(22)
|
|
(76)
|
Solar panel impairment,
net of tax of $0
|
—
|
|
—
|
|
—
|
|
(1)
|
|
(1)
|
PA tax rate
change
|
—
|
|
9
|
|
—
|
|
(5)
|
|
4
|
Sale of Safari
Holdings, net of tax of $19(4)
|
—
|
|
—
|
|
—
|
|
(56)
|
|
(56)
|
Total Special
Items
|
(2)
|
|
9
|
|
(54)
|
|
(84)
|
|
(131)
|
Earnings from
Ongoing Operations
|
$
155
|
|
$
134
|
|
$
28
|
|
$
(12)
|
|
$
305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per share -
diluted)
|
|
KY
|
|
PA
|
|
RI
|
|
Corp.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Total
|
Reported
Earnings(1)
|
$
0.21
|
|
$
0.19
|
|
$
(0.03)
|
|
$
(0.13)
|
|
$
0.24
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
Acquisition
integration(3)
|
—
|
|
—
|
|
(0.07)
|
|
(0.03)
|
|
(0.10)
|
PA tax rate
change
|
—
|
|
0.01
|
|
—
|
|
—
|
|
0.01
|
Sale of Safari
Holdings(4)
|
—
|
|
—
|
|
—
|
|
(0.08)
|
|
(0.08)
|
Total Special
Items
|
—
|
|
0.01
|
|
(0.07)
|
|
(0.11)
|
|
(0.17)
|
Earnings from
Ongoing Operations
|
$
0.21
|
|
$
0.18
|
|
$
0.04
|
|
$
(0.02)
|
|
$
0.41
|
|
|
(1)
|
Reported Earnings
represents Net Income.
|
(2)
|
Represents costs
primarily related to the acquisition of Rhode Island Energy and
PPL's corporate centralization efforts.
|
(3)
|
Represents costs
related to the integration of Rhode Island Energy and certain costs
associated with its acquisition and commitments made during the
acquisition process, including costs related to arrearages
forgiveness for low-income and protected residential customers and
a write-down of regulatory assets as of the acquisition date for
National Grid's Gas Business Enablement (GBE) program and a bill
credit to all electric and natural gas distribution
customers.
|
(4)
|
Primarily includes the
current estimated loss on the sale of Safari Holdings
LLC.
|
Reconciliation of
Segment Reported Earnings to Earnings from Ongoing
Operations
|
(After-Tax)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date September
30, 2022
|
(millions of
dollars)
|
|
KY
|
|
PA
|
|
RI
|
|
Corp.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Total
|
Reported
Earnings(1)
|
$
434
|
|
$
410
|
|
$
(55)
|
|
$
(223)
|
|
$
566
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
Talen litigation costs,
net of tax of ($1)
|
—
|
|
—
|
|
—
|
|
5
|
|
5
|
Strategic corporate
initiatives, net of tax of $2, $4(2)
|
(8)
|
|
—
|
|
—
|
|
(15)
|
|
(23)
|
Acquisition
integration, net of tax of $24, $28(3)
|
—
|
|
—
|
|
(92)
|
|
(104)
|
|
(196)
|
PA tax rate
change
|
—
|
|
9
|
|
—
|
|
(5)
|
|
4
|
Sale of Safari
Holdings, net of tax $19(4)
|
—
|
|
—
|
|
—
|
|
(56)
|
|
(56)
|
Total Special
Items
|
(8)
|
|
9
|
|
(92)
|
|
(175)
|
|
(266)
|
Earnings from
Ongoing Operations
|
$
442
|
|
$
401
|
|
$
37
|
|
$
(48)
|
|
$
832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per share -
diluted)
|
|
KY
|
|
PA
|
|
RI
|
|
Corp.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Total
|
Reported
Earnings(1)
|
$
0.59
|
|
$
0.55
|
|
$
(0.07)
|
|
$
(0.30)
|
|
$
0.77
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
Talen litigation
costs
|
—
|
|
—
|
|
—
|
|
0.01
|
|
0.01
|
Strategic corporate
initiatives(2)
|
(0.01)
|
|
—
|
|
—
|
|
(0.02)
|
|
(0.03)
|
Acquisition
integration(3)
|
—
|
|
—
|
|
(0.12)
|
|
(0.15)
|
|
(0.27)
|
PA tax rate
change
|
—
|
|
0.01
|
|
—
|
|
—
|
|
0.01
|
Sale of Safari
Holdings(4)
|
—
|
|
—
|
|
—
|
|
(0.08)
|
|
(0.08)
|
Total Special
Items
|
(0.01)
|
|
0.01
|
|
(0.12)
|
|
(0.24)
|
|
(0.36)
|
Earnings from
Ongoing Operations
|
$
0.60
|
|
$
0.54
|
|
$
0.05
|
|
$
(0.06)
|
|
$
1.13
|
|
|
(1)
|
Reported Earnings
represents Net Income.
|
(2)
|
Represents costs
primarily related to the acquisition of Rhode Island Energy and
PPL's corporate centralization efforts.
|
(3)
|
Represents costs
related to the integration of Rhode Island Energy and certain costs
associated with its acquisition and commitments made during the
acquisition process, including costs related to arrearages
forgiveness for low-income and protected residential customers and
a write-down of regulatory assets as of the acquisition date for
National Grid's Gas Business Enablement (GBE) program and a bill
credit to all electric and natural gas distribution
customers.
|
(4)
|
Primarily includes the
current estimated loss on the sale of Safari Holdings
LLC.
|
Reconciliation of
Segment Reported Earnings to Earnings from Ongoing
Operations
|
(After-Tax)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
3rd Quarter
2021
|
(millions of
dollars)
|
|
KY
|
|
PA
|
|
Corp.
|
|
Disc.
|
|
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Ops.(2)
|
|
Total
|
Reported
Earnings(1)
|
$
159
|
|
$
126
|
|
$
(76)
|
|
$
(2)
|
|
$
207
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
Income (Loss) from
Discontinued Operations
|
—
|
|
—
|
|
—
|
|
(2)
|
|
(2)
|
Talen litigation costs,
net of tax of $1
|
—
|
|
—
|
|
(1)
|
|
—
|
|
(1)
|
Strategic corporate
initiatives, net of tax of $0
|
—
|
|
—
|
|
(1)
|
|
—
|
|
(1)
|
Acquisition
integration, net of tax of $3
|
—
|
|
—
|
|
(9)
|
|
—
|
|
(9)
|
Loss on early
extinguishment of debt, net of tax of $16
|
—
|
|
—
|
|
(57)
|
|
—
|
|
(57)
|
Total Special
Items
|
—
|
|
—
|
|
(68)
|
|
(2)
|
|
(70)
|
Earnings from
Ongoing Operations
|
$
159
|
|
$
126
|
|
$
(8)
|
|
$
—
|
|
$
277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per share -
diluted)
|
|
KY
|
|
PA
|
|
Corp.
|
|
Disc.
|
|
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Ops.(2)
|
|
Total
|
Reported
Earnings(1)
|
$
0.21
|
|
$
0.16
|
|
$
(0.10)
|
|
$
—
|
|
$
0.27
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
Acquisition
integration
|
—
|
|
—
|
|
(0.01)
|
|
—
|
|
(0.01)
|
Loss on early
extinguishment of debt
|
—
|
|
—
|
|
(0.08)
|
|
—
|
|
(0.08)
|
Total Special
Items
|
—
|
|
—
|
|
(0.09)
|
|
—
|
|
(0.09)
|
Earnings from
Ongoing Operations
|
$
0.21
|
|
$
0.16
|
|
$
(0.01)
|
|
$
—
|
|
$
0.36
|
|
|
(1)
|
Reported Earnings
represents Net Income.
|
(2)
|
PPL sold its U.K.
utility business on June 14, 2021, and its earnings were treated as
a special item.
|
Reconciliation of
Segment Reported Earnings to Earnings from Ongoing
Operations
|
(After-Tax)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date September
30, 2021
|
(millions of
dollars)
|
|
KY
|
|
PA
|
|
Corp.
|
|
Disc.
|
|
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Ops.(2)
|
|
Total
|
Reported
Earnings(1)
|
$
389
|
|
$
335
|
|
$
(848)
|
|
$ (1,490)
|
|
$ (1,614)
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
Income (Loss) from
Discontinued Operations
|
—
|
|
—
|
|
—
|
|
(1,494)
|
|
(1,494)
|
Talen litigation costs,
net of tax of $3
|
—
|
|
—
|
|
(10)
|
|
—
|
|
(10)
|
Strategic corporate
initiatives, net of tax of $1
|
—
|
|
—
|
|
(3)
|
|
—
|
|
(3)
|
Valuation allowance
adjustment
|
4
|
|
—
|
|
(4)
|
|
4
|
|
4
|
Transmission formula
rate return on equity reduction, net of tax of $8
|
—
|
|
(20)
|
|
—
|
|
—
|
|
(20)
|
Acquisition
integration, net of tax of $4
|
—
|
|
—
|
|
(11)
|
|
—
|
|
(11)
|
U.K. tax rate
change
|
—
|
|
—
|
|
(383)
|
|
—
|
|
(383)
|
Solar panel impairment,
net of tax of $9
|
—
|
|
—
|
|
(28)
|
|
—
|
|
(28)
|
Loss on early
extinguishment of debt, net of tax of $83
|
—
|
|
—
|
|
(312)
|
|
—
|
|
(312)
|
Total Special
Items
|
4
|
|
(20)
|
|
(751)
|
|
(1,490)
|
|
(2,257)
|
Earnings from
Ongoing Operations
|
$
385
|
|
$
355
|
|
$
(97)
|
|
$
—
|
|
$
643
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per share -
diluted)
|
|
KY
|
|
PA
|
|
Corp.
|
|
Disc.
|
|
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Ops.(2)
|
|
Total
|
Reported
Earnings(1)
|
$
0.51
|
|
$
0.43
|
|
$
(1.10)
|
|
$
(1.94)
|
|
$
(2.10)
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
Income (Loss) from
Discontinued Operations
|
—
|
|
—
|
|
—
|
|
(1.95)
|
|
(1.95)
|
Talen litigation
costs
|
—
|
|
—
|
|
(0.01)
|
|
—
|
|
(0.01)
|
Valuation allowance
adjustment
|
0.01
|
|
—
|
|
(0.01)
|
|
0.01
|
|
0.01
|
Transmission formula
rate return on equity reduction
|
—
|
|
(0.03)
|
|
—
|
|
—
|
|
(0.03)
|
Acquisition
integration
|
—
|
|
—
|
|
(0.01)
|
|
—
|
|
(0.01)
|
U.K. tax rate
change
|
—
|
|
—
|
|
(0.50)
|
|
—
|
|
(0.50)
|
Solar panel
impairment
|
—
|
|
—
|
|
(0.04)
|
|
—
|
|
(0.04)
|
Loss on early
extinguishment of debt
|
—
|
|
—
|
|
(0.40)
|
|
—
|
|
(0.40)
|
Total Special
Items
|
0.01
|
|
(0.03)
|
|
(0.97)
|
|
(1.94)
|
|
(2.93)
|
Earnings from
Ongoing Operations
|
$
0.50
|
|
$
0.46
|
|
$
(0.13)
|
|
$
—
|
|
$
0.83
|
|
|
(1)
|
Reported Earnings
represents Net Income.
|
(2)
|
PPL sold its U.K.
utility business on June 14, 2021, and its earnings were treated as
a special item.
|
Reconciliation of
PPL's Earnings Forecast
|
|
After-Tax
(Unaudited)
|
|
|
|
|
|
(per share -
diluted)
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 Forecast
Range
|
|
Midpoint
|
|
High
|
|
Low
|
Estimate of Reported
Earnings
|
$ 1.04
|
|
$ 1.09
|
|
$ 0.99
|
Less: Special Items
(expense) benefit:(1)
|
|
|
|
|
|
Talen litigation
costs
|
0.01
|
|
0.01
|
|
0.01
|
Strategic corporate
initiatives(2)
|
(0.03)
|
|
(0.03)
|
|
(0.03)
|
Acquisition
integration(3)
|
(0.27)
|
|
(0.27)
|
|
(0.27)
|
PA tax rate
change
|
0.01
|
|
0.01
|
|
0.01
|
Sale of Safari
Holdings(4)
|
(0.08)
|
|
(0.08)
|
|
(0.08)
|
Total Special
Items
|
(0.36)
|
|
(0.36)
|
|
(0.36)
|
Forecast of Earnings
from Ongoing Operations
|
$ 1.40
|
|
$ 1.45
|
|
$ 1.35
|
|
|
(1)
|
Reflects only special
items recorded through Sept. 30, 2022. PPL is not able to forecast
special items for future periods.
|
(2)
|
Represents costs
primarily related to the acquisition of Rhode Island Energy and
PPL's corporate centralization efforts.
|
(3)
|
Represents costs
related to the integration of Rhode Island Energy and certain costs
associated with its acquisition and commitments made during the
acquisition process, including costs related to arrearages
forgiveness for low-income and protected residential customers and
a write-down of regulatory assets as of the acquisition date for
National Grid's Gas Business Enablement (GBE) program and a bill
credit to all electric and natural gas distribution
customers.
|
(4)
|
Primarily includes the
current estimated loss on the sale of Safari Holdings
LLC.
|
CONTACT:
|
For news media: Ryan
Hill, 610-774-4033
|
|
For financial analysts:
Andy Ludwig, 610-774-3389
|
View original
content:https://www.prnewswire.com/news-releases/ppl-corporation-reports-third-quarter-2022-earnings-301668874.html
SOURCE PPL Corporation