Duke Energy CORP Quarterly Report for Q2 Ended Jun 30, 2020

Summary

Duke Energy Corporation (DUK) reported a net loss of $802 million, or $(1.13) per share, for the second quarter of 2020, a significant reversal from the $832 million net income ($1.12 per share) reported in the same period of 2019. This loss was heavily influenced by a substantial $2.0 billion pretax charge related to the abandonment of the Atlantic Coast Pipeline (ACP) project. Excluding this significant item, adjusted earnings per share were $1.08, a slight decrease from $1.12 in the prior year's second quarter. Total operating revenues declined to $5.42 billion from $5.87 billion year-over-year, largely due to lower regulated electric and natural gas revenues, with a notable impact from decreased customer demand, partly attributed to the COVID-19 pandemic, which reduced retail electric sales by 6.5% for the quarter. Despite the reported net loss, Duke Energy's balance sheet remains robust, though total assets increased to $160.05 billion from $158.84 billion at the end of 2019. The company maintained strong liquidity, with $5.4 billion available under its Master Credit Facility and $500 million under its Three-Year Revolving Credit Facility as of June 30, 2020. Management is focused on cost mitigation plans and adapting to lower customer demand and regulatory actions related to the pandemic, while continuing to advance investments in clean energy and grid modernization projects.

Key Highlights

• 1Reported a net loss of $802 million ($1.13 per share) for Q2 2020, compared to a net income of $832 million ($1.12 per share) in Q2 2019, largely due to a $2.0 billion pretax charge for the abandonment of the Atlantic Coast Pipeline (ACP).
• 2Adjusted earnings per share (excluding ACP impact) were $1.08 for Q2 2020, a slight decrease from $1.12 in Q2 2019.
• 3Total operating revenues decreased by 7.9% to $5.42 billion in Q2 2020 from $5.87 billion in Q2 2019, influenced by lower regulated electric and natural gas sales, and impacted by COVID-19 related demand reductions.
• 4Retail electric sales for the quarter were down 6.5% year-over-year, partly attributed to the COVID-19 pandemic's impact on commercial and industrial customers.
• 5The company incurred approximately $40 million in incremental COVID-19 related costs (bad debt, PPE, cleaning supplies) and waived $25 million in late payment fees during the first six months of 2020.
• 6Duke Energy ended Q2 2020 with strong liquidity, reporting $341 million in cash and $5.4 billion available under its Master Credit Facility.
• 7The company continues to invest in clean energy, with ongoing capital expenditures supporting renewables and grid modernization projects.

Frequently Asked Questions