Summary
Edison International (EIX) reported improved financial results for the third quarter and the first nine months of 2023 compared to the same periods in 2022. Net income attributable to common shareholders increased significantly, driven by Southern California Edison's (SCE) improved performance. SCE's results benefited from lower non-core losses, particularly related to wildfire claims and expenses, and modest growth in core earnings. The company continues to navigate significant wildfire liabilities, although recent developments and the implementation of a customer-funded self-insurance program are intended to mitigate future impacts. SCE's capital program remains substantial, focusing on infrastructure upgrades, wildfire mitigation, and readiness for the clean energy transition. Investors should monitor regulatory proceedings, particularly the 2025 General Rate Case, and the company's ability to recover costs through regulated rates.
Financial Highlights
46 data points| Revenue | $4.70B |
| Operating Expenses | $4.21B |
| Operating Income | $492.00M |
| Interest Expense | $433.00M |
| Net Income | $212.00M |
| EPS (Basic) | $0.40 |
| EPS (Diluted) | $0.40 |
| Shares Outstanding (Basic) | 383.00M |
| Shares Outstanding (Diluted) | 385.00M |
Key Highlights
- 1EIX reported a substantial increase in net income attributable to common shareholders for the nine months ended September 30, 2023, reaching $819 million, up from $197 million in the prior year period.
- 2SCE's performance significantly improved, with net income available for common stock rising to $239 million in Q3 2023 from a loss of ($80) million in Q3 2022, and for the nine months, it increased to $1,029 million from $369 million.
- 3Non-core items, largely wildfire-related claims and expenses, showed a significant reduction in charges for the nine months of 2023 compared to 2022, contributing to improved net income.
- 4SCE's 2025 General Rate Case application requests a substantial increase in revenue requirement, highlighting significant planned capital expenditures for system reliability and clean energy transition initiatives.
- 5The company continues to manage significant liabilities from the 2017/2018 Wildfire/Mudslide Events, with an increase in estimated losses of $475 million recorded in Q3 2023, though recovery through rates is uncertain.
- 6A new customer-funded self-insurance program for wildfire claims was approved and implemented in July 2023, designed to cap shareholder contributions and reduce future volatility from wildfire events.
- 7SCE's capital program forecast for 2023-2028 is substantial, with a total capital expenditure forecast of $43.3 billion, indicating significant ongoing investment in infrastructure.