Summary
Edison International (EIX) reported solid first-quarter 2023 results, with net income attributable to common shareholders increasing to $310 million, or $0.81 per share, up from $84 million, or $0.22 per share, in the prior year. This improvement was primarily driven by Southern California Edison (SCE)'s performance, which saw higher core earnings and significantly lower non-core losses compared to the first quarter of 2022. SCE's core earnings benefited from revenue escalation mechanisms within its 2021 General Rate Case (GRC) decision, though partially offset by increased interest expenses. The company continues to navigate the complex landscape of wildfire-related liabilities. While the charge for 2017/2018 Wildfire/Mudslide Events decreased significantly compared to the prior year, an additional $90 million in estimated losses was recorded in the current quarter. Despite this, SCE has made substantial progress in settling claims, with $7.8 billion paid under executed settlements. The company is also actively managing its capital structure and liquidity, with credit rating upgrades from Moody's and Fitch, and maintains compliance with its debt covenants.
Financial Highlights
46 data points| Revenue | $3.97B |
| Operating Expenses | $3.35B |
| Operating Income | $620.00M |
| Interest Expense | $361.00M |
| Net Income | $365.00M |
| EPS (Basic) | $0.81 |
| EPS (Diluted) | $0.81 |
| Shares Outstanding (Basic) | 383.00M |
| Shares Outstanding (Diluted) | 384.00M |
Key Highlights
- 1Net income attributable to common shareholders increased significantly to $310 million ($0.81/share) in Q1 2023, up from $84 million ($0.22/share) in Q1 2022.
- 2Southern California Edison (SCE) experienced a substantial reduction in non-core losses related to wildfire events, contributing to improved overall profitability.
- 3SCE's core earnings saw an increase, driven by revenue escalation from the 2021 GRC decision, though higher interest expenses were a partial offset.
- 4Despite ongoing wildfire litigation, approximately $7.8 billion has been paid under executed settlements for the 2017/2018 Wildfire/Mudslide Events as of March 31, 2023.
- 5EIX and SCE received credit rating upgrades from Moody's (Baa3 to Baa2 for EIX, Baa2 to Baa1 for SCE) and Fitch (BBB- to BBB for both), with stable outlooks.
- 6Capital expenditures remained consistent year-over-year at $1.3 billion for the first three months of 2023 and 2022.
- 7The company is actively managing its liquidity, with approximately $2.5 billion available under SCE's revolving credit facility as of March 31, 2023.