10-QPeriod: Q1 FY2021

Duke Energy CORP Quarterly Report for Q1 Ended Mar 31, 2021

Filed May 10, 2021For Securities:DUKDUKBDUK-PA

Summary

Duke Energy Corporation reported solid financial results for the first quarter of 2021, demonstrating a recovery from 2020 challenges and progress in its clean energy transformation. Total operating revenues increased to $6.15 billion from $5.95 billion in the prior year, driven by growth across regulated electric and gas utilities. Net income available to common stockholders rose to $953 million ($1.25 per share), up from $899 million ($1.24 per share) in the first quarter of 2020. The company highlighted strategic initiatives to accelerate its clean energy transition, including plans for significant battery storage investments and modernization of its energy grid, with a goal to achieve net-zero carbon emissions by 2050. Regulatory actions, such as the approval of coal ash settlement agreements and ongoing rate case proceedings in various jurisdictions, are also key factors influencing results and future performance.

Financial Highlights

44 data points
Beta

Revenue

$6.09B

Net Income

$992.00M

16.3% Net Margin

EPS (Diluted)

$1.25

Total Assets

$163.47B

Cash & Equivalents

$379.00M

Free Cash Flow

-$127.00M

Financial Statements
Beta
Revenue$6.09B
Operating Expenses$4.70B
Operating Income$1.47B
Interest Expense$535.00M
Net Income$992.00M
EPS (Basic)$1.25
EPS (Diluted)$1.25
Shares Outstanding (Basic)769.00M
Shares Outstanding (Diluted)769.00M

Key Highlights

  • 1Total operating revenues increased to $6.15 billion in Q1 2021 from $5.95 billion in Q1 2020.
  • 2Net income available to common stockholders increased to $953 million ($1.25 per share) from $899 million ($1.24 per share) year-over-year.
  • 3Duke Energy is accelerating its clean energy transformation with plans for significant battery storage investments and grid modernization.
  • 4The company is progressing with regulatory matters, including the recent approval of coal ash settlement agreements in North Carolina.
  • 5Capital expenditures for the first quarter were $2.22 billion, reflecting ongoing investments in infrastructure and clean energy initiatives.
  • 6The company maintained strong liquidity with $4.4 billion available under its Master Credit Facility and $500 million under its Three-Year Revolving Credit Facility as of March 31, 2021.

Frequently Asked Questions

Duke Energy reported an increase in total operating revenues to $6.15 billion from $5.95 billion in the first quarter of 2020. Net income available to common stockholders rose to $953 million ($1.25 per share) from $899 million ($1.24 per share) year-over-year, indicating a positive financial performance and recovery from prior year challenges.

Duke Energy is actively pursuing its clean energy transformation by planning significant investments in battery storage, aiming for over 13,000 MW of energy storage by 2050. The company also continues to modernize its energy grid, with over 8.5 million smart meters installed, and aims to shift its generation fleet away from coal to renewable energy sources, projecting renewables to represent about 40% of its capacity by 2050.

Key regulatory developments include the NCUC's approval of coal ash settlement agreements for Duke Energy Carolinas and Duke Energy Progress, resolving cost recovery issues through 2030. The company is also actively involved in ongoing rate case proceedings in various jurisdictions, such as the Duke Energy Carolinas 2019 rate case order and the Piedmont 2021 North Carolina rate case filing, which will impact future revenues and operations.

The Texas Storm Uri had a material negative impact on the Commercial Renewables segment, resulting in a pre-tax loss of $35 million. This was due to limited electricity generation from solar and wind facilities and higher than expected purchased power costs, impacting both lost revenues and operating results.