• 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

Cision View original content:https://www.prnewswire.com/news-releases/ppl-corporation-reports-third-quarter-2023-earnings-301975192.html

SOURCE PPL Corporation

Copyright 2023 PR Newswire

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