01—Abstract
Summary
Summary of the 10-K filed February 16, 2024. Cited figures are marked; the original filing is the authoritative source.
PPL Corporation reported 2023 net income of $740 milliona, up from $756 million in 2022 (which included $42 million from discontinued operations).
Operating revenues rose to $8.31 billionb from $7.90 billion, driven largely by the full-year inclusion of Rhode Island Energy (acquired May 25, 2022). Earnings from Ongoing Operations, a non-GAAP measure, increased to $1.183 billion from $1.041 billion. Net income for the period was reduced by special items totaling $443 million, including $99 million (after tax) in Talen litigation costs and $274 million in acquisition integration costs.
Segment results show Kentucky Regulated net income of $552 millionc, Pennsylvania Regulated $519 million and Rhode Island Regulated $96 million, with Corporate and Other at a loss of $427 million. Interest expense rose to $666 million from $513 million. Operating cash flow was $1.758 billion, and capital expenditures are projected at $10.575 billion for 2024 through 2026.
PPL declared a quarterly dividend of 25.75 cents per share on February 16, 2024, and the company settled the Talen litigation, paying Talen $115 milliond. The filing is a combined Form 10-K covering PPL Corporation, PPL Electric Utilities, Louisville Gas and Electric and Kentucky Utilities. Key regulatory items include a KPSC order approving a 640 MW natural gas combined cycle unit at Mill Creek and the retirement of two coal units, and an RIPUC approval for Rhode Island advanced metering deployment capped at about $153 million.
02—Key points
Key Highlights
- Net income of $740 million in 2023 versus $756 million in 2022; Earnings from Ongoing Operations rose to $1.183 billion from $1.041 billion.
- Operating revenues increased to $8.312 billion from $7.902 billion, mainly from a full year of Rhode Island Energy operations.
- Segment net income: Kentucky Regulated $552 million, Pennsylvania Regulated $519 million, Rhode Island Regulated $96 million.
- Capital expenditures projected at $10.575 billion for 2024 through 2026, including $3.125 billion in 2024.
- Talen litigation settled in December 2023 with a $115 million payment to Talen; this matter is now concluded.
- KPSC approved a 640 MW NGCC unit at Mill Creek and retirement of Mill Creek Units 1 and 2 in 2024 and 2027, but deferred the KU E.W. Brown NGCC unit to a 2030 in-service date.
- Interest expense rose to $666 million from $513 million, reflecting increased borrowings and a full year of Rhode Island Energy.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 16, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $8.29B$7.79B | +6.5% |
| Operating Income | $1.63B$1.37B | +18.6% |
| Interest Expense | $666.00M$513.00M | +29.8% |
| Net Income | $740.00M$756.00M | −2.1% |
| EPS (Basic) | $1.00$1.03 | −2.9% |
| EPS (Diluted) | $1.00$1.02 | −2.0% |
| Shares Outstanding (Basic) | 737.04M736.03M | +0.1% |
| Shares Outstanding (Diluted) | 738.17M736.90M | +0.2% |
05—Questions
Frequently Asked Questions
How did PPL's core earnings perform in 2023?
Earnings from Ongoing Operations, a non-GAAP measure, were $1.183 billion in 2023 versus $1.041 billion in 2022. GAAP net income was $740 million, reduced by $443 million of special items including Talen litigation costs and acquisition integration costs.
What are PPL's major capital spending plans?
PPL projects total capital expenditures of $10.575 billion for 2024 through 2026, with transmission facilities ($3.7 billion) and electric distribution facilities ($3.275 billion) among the largest categories. The 2024 total is $3.125 billion.
What drove the increase in PPL's revenues and interest expense?
Operating revenues increased $410 million, primarily due to $796 million from a full year of Rhode Island Energy operations. Interest expense increased $153 million, mainly from increased borrowings at LG&E, KU, PPL Electric and PPL Capital Funding and from a full year of Rhode Island Energy.
Did PPL resolve any significant litigation?
Yes. PPL agreed in December 2023 to pay Talen $115 million to resolve claims tied to the 2015 spinoff of PPL Energy Supply, and Talen dismissed all claims. A related settlement with Riverstone was reached in January 2024, and the matter is now concluded.
06—Continue