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10-QPeriod: Q1 FY2020

Duke Energy CORP Quarterly Report for Q1 Ended Mar 31, 2020

Filed May 12, 2020For Securities:DUKDUKBDUK-PA

Summary

Duke Energy's (DUK) Q1 2020 report shows a slight decrease in total operating revenues to $5.95 billion from $6.16 billion in Q1 2019, primarily driven by lower fuel cost recovery and unfavorable weather impacting retail sales. Net income attributable to common stockholders remained stable at $899 million ($1.24 per share), compared to $900 million ($1.24 per share) in the prior year, demonstrating resilient earnings performance. The company significantly bolstered its liquidity in response to the COVID-19 pandemic by drawing down its credit facilities and issuing new debt, ending the quarter with $1.5 billion in cash and substantial available credit. Capital expenditures increased year-over-year, reflecting ongoing investments in infrastructure and renewables, while regulatory matters and pending rate cases continue to be key factors influencing future results.

Financial Statements
Beta
Revenue$5.80B
Operating Expenses$4.46B
Operating Income$1.49B
Interest Expense$551.00M
Net Income$938.00M
EPS (Basic)$1.24
EPS (Diluted)$1.24
Shares Outstanding (Basic)734.00M
Shares Outstanding (Diluted)736.00M

Key Highlights

  • 1Total operating revenues decreased by 3.4% year-over-year to $5.95 billion, primarily due to lower fuel cost recovery and unfavorable weather impacting retail sales.
  • 2Net income available to common stockholders remained flat at $899 million ($1.24 per share) compared to $900 million ($1.24 per share) in the prior year.
  • 3The company ended the quarter with significantly improved liquidity, holding $1.5 billion in cash and cash equivalents and having $4.8 billion available under its Master Credit Facility, bolstered by recent debt issuances and credit facility draws in response to COVID-19.
  • 4Capital expenditures increased by approximately 12% year-over-year to $2.83 billion, with significant investments in regulated utilities and growing commercial renewables.
  • 5The company continues to navigate various regulatory matters, including ongoing rate cases across its service territories, with some proceedings experiencing delays due to the COVID-19 pandemic.
  • 6Segment income for Electric Utilities and Infrastructure decreased by 6% to $705 million, primarily due to unfavorable weather and lower wholesale revenues.
  • 7Gas Utilities and Infrastructure segment income increased by 10% to $249 million, driven by higher rate case impacts and integrity management rider increases, partially offset by lower natural gas costs passed through to customers.

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