01—Abstract
Summary
Summary of the 10-Q filed May 1, 2024. Cited figures are marked; the original filing is the authoritative source.
PPL Corporation's Form 10-Q for the quarter ended March 31, 2024 reports consolidated net income of $307 milliona ($0.42 per basic and diluted share) for the three months ended March 31, 2024, up from $285 million ($0.39 per share) in the prior-year period.
Operating revenues fell to $2.304 billionb from $2.415 billion, mainly because of lower PLR revenue at PPL Electric ($156 million lower) and lower energy purchase recoveries at Rhode Island Energy, while operating income rose to $545 million from $498 million. Earnings from Ongoing Operations, a non-GAAP measure, was $402 million versus $352 million a year earlier, with the Kentucky, Pennsylvania and Rhode Island Regulated segments all contributing higher results. Liquidity and financing activity were significant during the quarter.
Long-term debt rose to $15.753 billionc from $14.611 billion at year-end 2023, driven by a $500 million RIE Senior Notes issuance in March 2024 and a $650 million PPL Electric First Mortgage Bonds issuance in January 2024. Short-term debt fell to $291 million from $992 million. Net cash provided by operating activities was $282 million, versus $430 million in the prior year, while capital expenditures for property, plant and equipment were $596 million.
PPL's board declared a quarterly dividend of 25.75 cents per share, payable April 1, 2024. The filing also details several open regulatory and legal matters.
These include a KPSC investigation into Winter Storm Elliott service interruptions, a PAPUC settlement on PPL Electric billing issues with $15 milliond in costs incurred in the quarter that will not be recovered, a pending FERC transmission rate matter, and a Rhode Island proceeding over energy efficiency incentives. The company states that it cannot predict the outcome of several of these matters.
02—Key points
Key Highlights
- Net income rose to $307 million ($0.42 per share) from $285 million ($0.39 per share) in Q1 2023.
- Operating revenues declined to $2.304 billion from $2.415 billion, mainly from $156 million lower PLR revenue at PPL Electric.
- Earnings from Ongoing Operations (non-GAAP) increased to $402 million from $352 million, with all three regulated segments higher.
- Long-term debt increased to $15.753 billion from $14.611 billion, following a $500 million RIE Senior Notes issuance and a $650 million PPL Electric First Mortgage Bonds issuance.
- Operating cash flow fell to $282 million from $430 million, reflecting a $279 million working capital decrease.
- Capital expenditures for property, plant and equipment were $596 million in the quarter, compared with $499 million a year earlier.
- PPL Electric incurred $15 million of billing-issue costs it will not seek to recover, and the PAPUC approved a settlement with modifications on April 25, 2024.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed May 1, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $2.30B$2.45B | −5.9% |
| Operating Income | $545.00M$498.00M | +9.4% |
| Interest Expense | $179.00M$164.00M | +9.1% |
| Net Income | $307.00M$285.00M | +7.7% |
| EPS (Basic) | $0.42$0.39 | +7.7% |
| EPS (Diluted) | $0.42$0.39 | +7.7% |
| Shares Outstanding (Basic) | 737.51M736.83M | +0.1% |
| Shares Outstanding (Diluted) | 738.82M737.70M | +0.2% |
05—Questions
Frequently Asked Questions
How did PPL perform in the first quarter of 2024?
Net income was $307 million, or $0.42 per basic and diluted share, compared with $285 million, or $0.39 per share, in the first quarter of 2023. Operating income rose to $545 million from $498 million, while operating revenues declined to $2.304 billion from $2.415 billion.
What drove the change in PPL Electric's revenue?
PPL Electric's revenue fell mainly due to $156 million lower PLR revenue from fewer PLR customers and lower energy prices, partially offset by an $18 million increase in transmission formula rate returns and an $11 million increase in distribution volumes.
How did PPL's debt and liquidity change?
Long-term debt increased to $15.753 billion from $14.611 billion at December 31, 2023. Short-term debt decreased to $291 million from $992 million, and cash and cash equivalents were $276 million at March 31, 2024.
What regulatory matters remain open?
The filing lists a KPSC investigation into Winter Storm Elliott service interruptions with a hearing scheduled for May 23, 2024, a pending FERC transmission rate matter for LG&E and KU, and a Rhode Island proceeding on energy efficiency incentives. The company states it cannot predict the outcome of these matters.
06—Continue