- Announces 2023 third-quarter reported earnings (GAAP) per
share of $0.31.
- Achieves 2023 third-quarter ongoing earnings per share of
$0.43 vs. $0.41 in 2022.
- Narrows 2023 ongoing earnings forecast range to $1.55 to $1.60 per
share.
- Reaffirms projected annual earnings per share and dividend
growth of 6% to 8% through at least 2026.
ALLENTOWN, Pa., Nov. 2, 2023
/PRNewswire/ -- PPL Corporation (NYSE: PPL) today announced
third-quarter 2023 reported earnings (GAAP) of $230 million, or $0.31 per share, compared with third-quarter 2022
reported earnings of $174 million, or
$0.24 per share.
PPL reported earnings of $627
million, or $0.85 per share,
for the first nine months of 2023, compared with reported earnings
of $566 million, or $0.77 per share, for the first nine months of
2022.
Adjusting for special items, third-quarter 2023 earnings from
ongoing operations (non-GAAP) were $317
million, or $0.43 per share,
compared with $305 million, or
$0.41 per share, a year ago.
Earnings from ongoing operations for the first nine months of
2023 were $884 million, or
$1.20 per share, compared with
$832 million, or $1.13 per share, for the first nine months of
2022.
Special items in the third quarters of 2023 and 2022 primarily
included integration and related expenses associated with the
acquisition of Rhode Island Energy. Special items in the third
quarter of 2022 also included impacts associated with the sale of
Safari Holdings, LLC on Nov. 1,
2022.
"Based on our financial performance year to date and our
continued success in offsetting this year's headwinds from weather
and storms, we have narrowed our 2023 ongoing earnings forecast
range and remain confident in our ability to deliver our forecast
midpoint of $1.58 per share," said
PPL President and Chief Executive Officer Vincent Sorgi.
The company said it continues to expect to offset weather and
storm impacts through higher distribution rider revenues in
Pennsylvania, better than expected
execution of the Rhode Island Energy integration, lower interest
costs due to PPL's convertible issuance earlier this year, and
additional savings the company has achieved through effective
O&M management.
In updating the company's 2023 ongoing earnings forecast range
today, PPL narrowed the range to $1.55 to $1.60 per
share from $1.50 to $1.65 per share.
The company also said it remains well-positioned to deliver
top-tier earnings per share and dividend growth of 6% to 8% a year
through at least 2026 without the need for equity issuances and
while maintaining one of the sector's strongest credit
profiles.
In addition, PPL said it is on pace to achieve its projected
O&M savings of at least $175
million by 2026 and to invest nearly $2.5 billion this year and $12 billion through 2026 to modernize the grid,
further strengthen grid reliability and resiliency for customers as
extreme weather threats increase, and advance a cleaner energy mix
without compromising on affordability.
Third-Quarter 2023 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
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
Reported
earnings
|
$ 230
|
|
$ 174
|
|
32 %
|
|
$ 627
|
|
$ 566
|
|
11 %
|
Reported earnings per
share
|
$ 0.31
|
|
$ 0.24
|
|
29 %
|
|
$ 0.85
|
|
$ 0.77
|
|
10 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
Year to
Date
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
Earnings from ongoing
operations
|
$ 317
|
|
$ 305
|
|
4 %
|
|
$ 884
|
|
$ 832
|
|
6 %
|
Earnings from ongoing
operations per share
|
$ 0.43
|
|
$ 0.41
|
|
5 %
|
|
$ 1.20
|
|
$ 1.13
|
|
6 %
|
Third-Quarter 2023
Earnings by Segment(1)
|
|
|
3rd
Quarter
|
|
Year to
Date
|
Per
share
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Reported
earnings
|
|
|
|
|
|
|
|
Kentucky
Regulated
|
$
0.24
|
|
$
0.22
|
|
$
0.58
|
|
$
0.63
|
Pennsylvania
Regulated
|
0.18
|
|
0.19
|
|
0.52
|
|
0.55
|
Rhode Island
Regulated
|
0.01
|
|
(0.03)
|
|
0.10
|
|
(0.07)
|
Corporate and
Other
|
(0.12)
|
|
(0.14)
|
|
(0.35)
|
|
(0.34)
|
Total
|
$
0.31
|
|
$
0.24
|
|
$
0.85
|
|
$
0.77
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
Year to
Date
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Special items
(expense) benefit
|
|
|
|
|
|
|
|
Kentucky
Regulated
|
$
—
|
|
$
—
|
|
$
(0.01)
|
|
$
(0.01)
|
Pennsylvania
Regulated
|
(0.02)
|
|
0.01
|
|
(0.02)
|
|
0.01
|
Rhode Island
Regulated
|
(0.02)
|
|
(0.07)
|
|
(0.06)
|
|
(0.12)
|
Corporate and
Other
|
(0.08)
|
|
(0.11)
|
|
(0.26)
|
|
(0.24)
|
Total
|
$
(0.12)
|
|
$
(0.17)
|
|
$
(0.35)
|
|
$
(0.36)
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
Year to
Date
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Earnings from
ongoing operations
|
|
|
|
|
|
|
|
Kentucky
Regulated
|
$
0.24
|
|
$
0.22
|
|
$
0.59
|
|
$
0.64
|
Pennsylvania
Regulated
|
0.20
|
|
0.18
|
|
0.54
|
|
0.54
|
Rhode Island
Regulated
|
0.03
|
|
0.04
|
|
0.16
|
|
0.05
|
Corporate and
Other
|
(0.04)
|
|
(0.03)
|
|
(0.09)
|
|
(0.10)
|
Total
|
$
0.43
|
|
$
0.41
|
|
$
1.20
|
|
$
1.13
|
|
|
(1)
|
Kentucky holding
company costs for intercompany financing activity are now presented
in Corporate and Other beginning on Jan. 1, 2023.
Prior periods have been adjusted to reflect this
change.
|
Key Factors Impacting Earnings
In addition to the segment drivers outlined below, PPL's
reported earnings in the third quarter of 2023 included net
special-item after-tax charges of $87
million or $0.12 per share,
primarily attributable to integration and related expenses
associated with the acquisition of Rhode Island Energy. 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 first nine months of 2023 included net
special-item after-tax charges of $257
million, or $0.35 per share,
primarily attributable to integration and related expenses
associated with the acquisition of Rhode Island Energy. 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.
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 2023 increased by $0.02 per share compared with a year ago. Factors
driving earnings results primarily included lower operation and
maintenance expense, partially offset by higher interest
expense.
Reported earnings and earnings from ongoing operations in the
first nine months of 2023 decreased by $0.05 per share compared with a year ago. Factors
driving earnings results primarily included lower sales volumes
largely due to mild weather and higher interest expense, partially
offset by lower operation and maintenance 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 2023 decreased by
$0.01 per share compared with a year
ago. Earnings from ongoing operations in the third quarter of 2023
increased by $0.02 per share compared
with a year ago. Factors driving earnings results primarily
included higher transmission revenue and distribution regulatory
rider recovery, partially offset by higher interest expense.
Reported earnings in the first nine months of 2023 decreased by
$0.03 per share compared with a year
ago. Earnings from ongoing operations in the first nine months of
2023 were even compared with a year ago. Factors driving earnings
results primarily included distribution regulatory rider recovery
and higher transmission revenue, partially offset by lower sales
volumes and higher interest expense.
Rhode Island Regulated Segment
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.
Reported earnings in the third quarter of 2023 increased by
$0.04 per share compared with a year
ago. Earnings from ongoing operations in the third quarter of 2023
decreased by $0.01 per share compared
with a year ago. Factors driving earnings results primarily
included higher operation and maintenance expense.
Reported earnings in the first nine months of 2023 increased by
$0.17 per share compared with a year
ago. Earnings from ongoing operations in the first nine months of
2023 increased by $0.11 per share
compared with a year ago, primarily reflecting PPL's ownership of
Rhode Island Energy for a full nine months in 2023.
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 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 2023 increased by
$0.02 per share compared with a year
ago. Earnings from ongoing operations in the third quarter of 2023
decreased by $0.01 per share compared
with a year ago. Factors driving earnings results primarily
included higher interest expense.
Reported earnings in the first nine months of 2023 decreased by
$0.01 per share compared with a year
ago. Earnings from ongoing operations in the first nine months of
2023 increased by $0.01 per share
compared with a year ago. Factors driving earnings results
primarily included lower operation and maintenance expense and
other factors, partially offset by higher interest expense.
2023 Earnings Forecast
PPL narrowed its 2023 earnings from ongoing operations forecast
range to $1.55 to $1.60 per share from a prior forecast range of
$1.50 to $1.65 per share. The midpoint remains
$1.58 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), headquartered in Allentown, Pennsylvania, is a leading U.S.
energy company focused on providing electricity and natural gas
safely, reliably and affordably to more than 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 2023 financial results at 11 a.m. Eastern time on Thursday, Nov. 2. 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: 5513427. 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 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,
|
|
2023
|
|
2022
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
353
|
|
$
356
|
Accounts
receivable
|
1,068
|
|
1,046
|
Unbilled
revenues
|
328
|
|
552
|
Fuel, materials and
supplies
|
488
|
|
443
|
Regulatory
assets
|
315
|
|
258
|
Other current
assets
|
202
|
|
169
|
Property, Plant and
Equipment
|
|
|
|
Regulated utility
plant
|
38,148
|
|
36,961
|
Less: Accumulated
depreciation - regulated utility plant
|
8,976
|
|
8,352
|
Regulated utility plant, net
|
29,172
|
|
28,609
|
Non-regulated
property, plant and equipment
|
70
|
|
92
|
Less: Accumulated
depreciation - non-regulated property, plant and
equipment
|
21
|
|
46
|
Non-regulated property, plant and equipment, net
|
49
|
|
46
|
Construction work in
progress
|
1,849
|
|
1,583
|
Property, Plant and
Equipment, net
|
31,070
|
|
30,238
|
Noncurrent regulatory
assets
|
1,787
|
|
1,819
|
Goodwill and other
intangibles
|
2,554
|
|
2,561
|
Other noncurrent
assets
|
464
|
|
395
|
Total
Assets
|
$
38,629
|
|
$
37,837
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Short-term
debt
|
$
287
|
|
$
985
|
Long-term debt due
within one year
|
91
|
|
354
|
Accounts
payable
|
1,178
|
|
1,201
|
Other current
liabilities
|
1,323
|
|
1,249
|
Long-term
debt
|
14,484
|
|
12,889
|
Deferred income taxes
and investment tax credits
|
3,163
|
|
3,124
|
Accrued pension
obligations
|
199
|
|
206
|
Asset retirement
obligations
|
140
|
|
138
|
Noncurrent regulatory
liabilities
|
3,384
|
|
3,412
|
Other deferred credits
and noncurrent liabilities
|
368
|
|
361
|
Common stock and
additional paid-in capital
|
12,327
|
|
12,325
|
Treasury
stock
|
(948)
|
|
(967)
|
Earnings
reinvested
|
2,775
|
|
2,681
|
Accumulated other
comprehensive loss
|
(142)
|
|
(124)
|
Noncontrolling
interests
|
—
|
|
3
|
Total Liabilities
and Equity
|
$
38,629
|
|
$
37,837
|
|
|
(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,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Operating
Revenues
|
$
2,043
|
|
$
2,134
|
|
$
6,281
|
|
$
5,612
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
Operation
|
|
|
|
|
|
|
|
Fuel
|
199
|
|
267
|
|
567
|
|
708
|
Energy
purchases
|
356
|
|
436
|
|
1,430
|
|
1,093
|
Other operation
and maintenance
|
637
|
|
678
|
|
1,805
|
|
1,671
|
Depreciation
|
314
|
|
312
|
|
940
|
|
872
|
Taxes, other than
income
|
100
|
|
100
|
|
299
|
|
230
|
Total Operating
Expenses
|
1,606
|
|
1,793
|
|
5,041
|
|
4,574
|
|
|
|
|
|
|
|
|
Operating
Income
|
437
|
|
341
|
|
1,240
|
|
1,038
|
|
|
|
|
|
|
|
|
Other Income (Expense)
- net
|
16
|
|
10
|
|
51
|
|
36
|
|
|
|
|
|
|
|
|
Interest
Expense
|
165
|
|
136
|
|
494
|
|
361
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes
|
288
|
|
215
|
|
797
|
|
713
|
|
|
|
|
|
|
|
|
Income Taxes
|
58
|
|
41
|
|
170
|
|
147
|
|
|
|
|
|
|
|
|
Net
Income
|
$
230
|
|
$
174
|
|
$
627
|
|
$
566
|
|
|
|
|
|
|
|
|
Earnings Per Share
of Common Stock:
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
|
|
|
|
|
|
Net Income Available to
PPL Common Shareowners
|
$
0.31
|
|
$
0.24
|
|
$
0.85
|
|
$
0.77
|
|
|
|
|
|
|
|
|
Weighted-Average
Shares of Common Stock Outstanding (in
thousands)
|
|
|
|
|
|
|
|
Basic
|
737,107
|
|
736,247
|
|
737,005
|
|
735,912
|
Diluted
|
738,184
|
|
737,074
|
|
738,021
|
|
736,679
|
PPL
CORPORATION AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
(Millions of
Dollars)
|
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
Cash Flows from
Operating Activities
|
|
|
|
Net income
|
$
627
|
|
$
566
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
Depreciation
|
940
|
|
872
|
Amortization
|
61
|
|
30
|
Defined benefit plans
- (income) expense
|
(55)
|
|
(12)
|
Deferred income taxes
and investment tax credits
|
142
|
|
55
|
Stock-based
compensation expense
|
22
|
|
23
|
Impairment of assets
held for sale
|
—
|
|
67
|
Other
|
(23)
|
|
21
|
Change in current
assets and current liabilities
|
|
|
|
Accounts
receivable
|
(37)
|
|
(103)
|
Accounts
payable
|
(129)
|
|
120
|
Unbilled
revenues
|
224
|
|
42
|
Fuel, materials and
supplies
|
(43)
|
|
(71)
|
Prepayments
|
(44)
|
|
(23)
|
Taxes
payable
|
(15)
|
|
(14)
|
Regulatory assets and
liabilities, net
|
(27)
|
|
(158)
|
Accrued
interest
|
123
|
|
59
|
Other
|
(2)
|
|
52
|
Other operating
activities
|
|
|
|
Defined benefit plans
- funding
|
(14)
|
|
(8)
|
Other
|
(102)
|
|
(7)
|
Net cash provided by
operating activities
|
1,648
|
|
1,511
|
|
|
|
|
Cash Flows from
Investing Activities
|
|
|
|
Expenditures for
property, plant and equipment
|
(1,741)
|
|
(1,515)
|
Acquisition of
Narragansett Electric, net of cash acquired
|
—
|
|
(3,674)
|
Other investing
activities
|
2
|
|
3
|
Net cash used in
investing activities
|
(1,739)
|
|
(5,186)
|
|
|
|
|
Cash Flows from
Financing Activities
|
|
|
|
Issuance of long-term
debt
|
3,127
|
|
850
|
Retirement of
long-term debt
|
(1,763)
|
|
(263)
|
Payment of common
stock dividends
|
(526)
|
|
(620)
|
Net increase
(decrease) in short-term debt
|
(698)
|
|
441
|
Other financing
activities
|
(52)
|
|
(1)
|
Net cash provided by
financing activities
|
88
|
|
407
|
|
|
|
|
Net Decrease in
Cash, Cash Equivalents and Restricted Cash
|
(3)
|
|
(3,268)
|
Cash, Cash Equivalents
and Restricted Cash at Beginning of Period
|
357
|
|
3,572
|
Cash, Cash Equivalents
and Restricted Cash at End of Period
|
$
354
|
|
$
304
|
|
|
|
|
Supplemental
Disclosures of Cash Flow Information
|
|
|
|
Significant non-cash
transactions:
|
|
|
|
Accrued expenditures
for property, plant and equipment at September 30,
|
$
200
|
|
$
239
|
Operating -
Electricity Sales (Unaudited)(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
|
|
Nine Months
Ended
September 30,
|
|
|
|
|
|
|
|
Percent
|
|
|
|
|
|
Percent
|
(GWh)
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
PA Regulated
Segment
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Delivered(2)
|
9,363
|
|
9,702
|
|
(3.5) %
|
|
26,894
|
|
28,398
|
|
(5.3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
KY Regulated
Segment
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Delivered
|
7,943
|
|
8,107
|
|
(2.0) %
|
|
21,539
|
|
22,886
|
|
(5.9) %
|
Wholesale(3)
|
178
|
|
183
|
|
(2.7) %
|
|
382
|
|
683
|
|
(44.1) %
|
Total
|
8,121
|
|
8,290
|
|
(2.0) %
|
|
21,921
|
|
23,569
|
|
(7.0) %
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
17,484
|
|
17,992
|
|
(2.8) %
|
|
48,815
|
|
51,967
|
|
(6.1) %
|
|
|
(1)
|
Excludes Rhode Island
Energy's electricity sales as revenues are decoupled from volumes
delivered.
|
(2)
|
Adjusted 2022 sales
volumes to account for a correction to a customer
account.
|
(3)
|
Represents
FERC-regulated municipal and unregulated off-system
sales.
|
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 $1
|
—
|
|
—
|
|
—
|
|
(3)
|
|
(3)
|
Strategic corporate initiatives, net of tax of $0,
$1(2)
|
—
|
|
(1)
|
|
—
|
|
(3)
|
|
(4)
|
Acquisition integration, net of tax of $4,
$15(3)
|
—
|
|
—
|
|
(16)
|
|
(55)
|
|
(71)
|
Sale
of Safari Holdings, net of tax of ($1)
|
—
|
|
—
|
|
—
|
|
1
|
|
1
|
PPL
Electric billing issue, net of tax of $4(4)
|
—
|
|
(8)
|
|
—
|
|
—
|
|
(8)
|
Other non-recurring charges, net of tax of
$0(5)
|
—
|
|
—
|
|
—
|
|
(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(3)
|
—
|
|
—
|
|
(0.02)
|
|
(0.08)
|
|
(0.10)
|
PPL
Electric billing issue(4)
|
—
|
|
(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 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)
|
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 $2
|
—
|
|
—
|
|
—
|
|
(6)
|
|
(6)
|
Strategic corporate initiatives, net of tax of $0, $0,
$2(2)
|
(1)
|
|
(1)
|
|
—
|
|
(7)
|
|
(9)
|
Acquisition integration, net of tax of $12,
$42(3)
|
—
|
|
—
|
|
(46)
|
|
(159)
|
|
(205)
|
PA
tax rate change
|
—
|
|
1
|
|
—
|
|
—
|
|
1
|
Sale
of Safari Holdings, net of tax of $1(4)
|
—
|
|
—
|
|
—
|
|
(3)
|
|
(3)
|
PPL
Electric billing issue, net of tax of $6(5)
|
—
|
|
(15)
|
|
—
|
|
—
|
|
(15)
|
FERC
transmission credit refund, net of tax of
$2(6)
|
(5)
|
|
—
|
|
—
|
|
—
|
|
(5)
|
Other non-recurring charges, net of tax of
$0(7)
|
—
|
|
—
|
|
—
|
|
(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
|
—
|
|
—
|
|
—
|
|
(0.01)
|
|
(0.01)
|
Strategic corporate initiatives(2)
|
—
|
|
—
|
|
—
|
|
(0.01)
|
|
(0.01)
|
Acquisition integration(3)
|
—
|
|
—
|
|
(0.06)
|
|
(0.22)
|
|
(0.28)
|
PPL
Electric billing issue(5)
|
—
|
|
(0.02)
|
|
—
|
|
—
|
|
(0.02)
|
FERC
transmission credit refund(6)
|
(0.01)
|
|
—
|
|
—
|
|
—
|
|
(0.01)
|
Other non-recurring charges(7)
|
—
|
|
—
|
|
—
|
|
(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 PPL's corporate centralization and other strategic
efforts.
|
(3)
|
Primarily integration
and related costs associated with the acquisition of Rhode Island
Energy.
|
(4)
|
Primarily final closing
adjustments related to the sale of Safari Holdings, LLC.
|
(5)
|
Certain expenses
related to billing issues.
|
(6)
|
Prior period impact
related to a FERC refund order.
|
(7)
|
Certain expenses
related to distributed energy investments.
|
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)
|
$
164
|
|
$
143
|
|
$
(26)
|
|
$
(107)
|
|
$
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(4)
|
—
|
|
9
|
|
—
|
|
(5)
|
|
4
|
Sale
of Safari Holdings, net of tax of $19(5)
|
—
|
|
—
|
|
—
|
|
(56)
|
|
(56)
|
Total Special
Items
|
(2)
|
|
9
|
|
(54)
|
|
(84)
|
|
(131)
|
Earnings from
Ongoing Operations
|
$
166
|
|
$
134
|
|
$
28
|
|
$
(23)
|
|
$
305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per share -
diluted)
|
|
KY
|
|
PA
|
|
RI
|
|
Corp.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Total
|
Reported
Earnings(1)
|
$
0.22
|
|
$
0.19
|
|
$
(0.03)
|
|
$
(0.14)
|
|
$
0.24
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
Acquisition integration(3)
|
—
|
|
—
|
|
(0.07)
|
|
(0.03)
|
|
(0.10)
|
PA
tax rate change(4)
|
—
|
|
0.01
|
|
—
|
|
—
|
|
0.01
|
Sale
of Safari Holdings(5)
|
—
|
|
—
|
|
—
|
|
(0.08)
|
|
(0.08)
|
Total Special
Items
|
—
|
|
0.01
|
|
(0.07)
|
|
(0.11)
|
|
(0.17)
|
Earnings from
Ongoing Operations
|
$
0.22
|
|
$
0.18
|
|
$
0.04
|
|
$
(0.03)
|
|
$
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)
|
Primarily includes
integration and related costs associated with the acquisition of
Rhode Island Energy, along with costs for certain commitments made
during the acquisition process.
|
(4)
|
Impact of Pennsylvania
state tax reform.
|
(5)
|
Primarily the estimated
loss on the sale of Safari Holdings, LLC at September 30,
2022.
|
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)
|
$
465
|
|
$
410
|
|
$
(55)
|
|
$
(254)
|
|
$
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(4)
|
—
|
|
9
|
|
—
|
|
(5)
|
|
4
|
Sale
of Safari Holdings, net of tax of $19(5)
|
—
|
|
—
|
|
—
|
|
(56)
|
|
(56)
|
Total Special
Items
|
(8)
|
|
9
|
|
(92)
|
|
(175)
|
|
(266)
|
Earnings from
Ongoing Operations
|
$
473
|
|
$
401
|
|
$
37
|
|
$
(79)
|
|
$
832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per share -
diluted)
|
|
KY
|
|
PA
|
|
RI
|
|
Corp.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Total
|
Reported
Earnings(1)
|
$
0.63
|
|
$
0.55
|
|
$
(0.07)
|
|
$
(0.34)
|
|
$
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(4)
|
—
|
|
0.01
|
|
—
|
|
—
|
|
0.01
|
Sale
of Safari Holdings(5)
|
—
|
|
—
|
|
—
|
|
(0.08)
|
|
(0.08)
|
Total Special
Items
|
(0.01)
|
|
0.01
|
|
(0.12)
|
|
(0.24)
|
|
(0.36)
|
Earnings from
Ongoing Operations
|
$
0.64
|
|
$
0.54
|
|
$
0.05
|
|
$
(0.10)
|
|
$
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)
|
Primarily includes
integration and related costs associated with the acquisition of
Rhode Island Energy, along with costs for certain commitments
made during the acquisition process.
|
(4)
|
Impact of Pennsylvania
state tax reform.
|
(5)
|
Primarily the estimated
loss on the sale of Safari Holdings, LLC at September 30,
2022.
|
Reconciliation of
PPL's Earnings Forecast
|
|
After-Tax
(Unaudited)
|
|
|
|
|
|
(per share -
diluted)
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 Forecast
Range
|
|
Midpoint
|
|
High
|
|
Low
|
Estimate of Reported
Earnings
|
$ 1.23
|
|
$ 1.25
|
|
$ 1.20
|
Less: Special Items
(expense) benefit:(1)
|
|
|
|
|
|
Talen litigation costs
|
(0.01)
|
|
(0.01)
|
|
(0.01)
|
Strategic corporate initiatives(2)
|
(0.01)
|
|
(0.01)
|
|
(0.01)
|
Acquisition integration(3)
|
(0.28)
|
|
(0.28)
|
|
(0.28)
|
PPL
Electric billing issue(4)
|
(0.02)
|
|
(0.02)
|
|
(0.02)
|
FERC
transmission credit refund(5)
|
(0.01)
|
|
(0.01)
|
|
(0.01)
|
Other non-recurring charges(6)
|
(0.02)
|
|
(0.02)
|
|
(0.02)
|
Total Special
Items
|
(0.35)
|
|
(0.35)
|
|
(0.35)
|
Forecast of Earnings
from Ongoing Operations
|
$ 1.58
|
|
$ 1.60
|
|
$ 1.55
|
|
|
(1)
|
Reflects only special
items recorded through September 30, 2023. PPL is not able to
forecast special items for future periods.
|
(2)
|
Represents costs
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
related to a FERC refund order.
|
(6)
|
Certain expenses
related to distributed energy investments.
|
Contacts:
|
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-2023-earnings-301975192.html
SOURCE PPL Corporation