10-QPeriod: Q1 FY2023

Duke Energy CORP Quarterly Report for Q1 Ended Mar 31, 2023

Filed May 9, 2023For Securities:DUKDUKBDUK-PA

Summary

Duke Energy Corporation (DUK) reported a net income of $761 million ($1.01 per diluted share) for the first quarter of 2023, a decrease from $820 million ($1.08 per diluted share) in the same period of 2022. The decline was primarily attributed to unfavorable weather conditions, higher interest expenses, and lower sales volumes, partially offset by favorable rate case impacts and lower storm costs compared to the prior year. The company is continuing its strategic shift towards regulated operations with the ongoing sale of its Commercial Renewables business segment. During the quarter, Duke Energy Florida announced two new solar projects and a floating solar array pilot, underscoring its commitment to renewable energy expansion. Duke Energy's regulated operations saw increased operating revenues, largely driven by higher fuel costs passed through to customers and a general increase in rider revenues, while operating expenses also rose due to higher fuel and purchased power costs.

Financial Highlights

44 data points
Beta

Revenue

$7.10B

Net Income

$804.00M

11.3% Net Margin

EPS (Diluted)

$1.01

Total Assets

$178.83B

Cash & Equivalents

$624.00M

Free Cash Flow

-$1.66B

Financial Statements
Beta
Revenue$7.10B
Operating Expenses$5.61B
Operating Income$1.67B
Interest Expense$720.00M
Net Income$804.00M
EPS (Basic)$1.01
EPS (Diluted)$1.01
Shares Outstanding (Basic)770.00M
Shares Outstanding (Diluted)770.00M

Key Highlights

  • 1Duke Energy reported a net income of $761 million ($1.01 per diluted share) for Q1 2023, down from $820 million ($1.08 per diluted share) in Q1 2022.
  • 2Adjusted EPS was $1.20 for Q1 2023, down from $1.29 in Q1 2022, primarily due to unfavorable weather, higher interest expenses, and lower volumes.
  • 3The company is proceeding with the sale of its Commercial Renewables business segment, with expected disposal in the second half of 2023.
  • 4Operating revenues for the Electric Utilities and Infrastructure segment increased by $396 million year-over-year, driven by higher fuel revenues and rider revenues, while operating expenses increased due to higher fuel and purchased power costs.
  • 5Duke Energy Florida is expanding its solar portfolio with two new projects and a floating solar array pilot, contributing to its clean energy transformation.
  • 6The company has sufficient liquidity with $451 million in cash and $5.4 billion available under its Master Credit Facility.

Frequently Asked Questions

Duke Energy's net income decreased primarily due to unfavorable weather conditions, higher interest expenses, and lower sales volumes. These factors were partially offset by favorable rate case impacts, lower storm costs, and the absence of significant coal ash impairment charges recorded in the prior year's first quarter.

Duke Energy is continuing the marketing process for its Commercial Renewables business, which is being handled as three separate disposal groups. The company expects to complete the sales of these groups in the second half of 2023. The estimated impairment on the sale of this business was recorded in the first quarter of 2023.

Duke Energy maintains strong liquidity, with approximately $451 million in cash on hand and $5.4 billion available under its $9 billion Master Credit Facility as of March 31, 2023. The company expects to have sufficient liquidity to fund its operations, capital expenditures, and debt obligations.

The EU&I segment saw an increase in operating revenues of $396 million, primarily driven by higher fuel revenues and increased rider revenues. However, operating expenses also rose, mainly due to higher fuel and purchased power costs. Despite these pressures, segment income increased by $68 million year-over-year, benefiting from lower storm costs and the absence of prior-year impairment charges.