01—Abstract
Summary
Summary of the 10-Q filed August 2, 2024. Cited figures are marked; the original filing is the authoritative source.
PPL Corporation's Form 10-Q for the quarter ended June 30, 2024 reports net income of $190 milliona for the second quarter, up from $112 million a year earlier, and $497 million for the six months, up from $397 million.
Basic and diluted EPS were $0.26b for the quarter and $0.67 for the six months, compared with $0.15 and $0.54 in 2023. Operating revenues were $1.88 billion for the quarter and $4.19 billion for the six months, with the six-month decline driven mainly by lower PLR revenue at PPL Electric. Earnings from Ongoing Operations, a non-GAAP measure, were $282 million for the quarter and $684 million for the six months, versus $215 million and $567 million in 2023.
The company's segments are Kentucky Regulated, Pennsylvania Regulated and Rhode Island Regulated. Six-month net income rose in Kentucky Regulated ($324 millionc vs. $257 million) and Pennsylvania Regulated ($299 million vs. $248 million), with Rhode Island Regulated at $76 million vs. $64 million. Long-term debt rose to $15.76 billion at June 30, 2024 from $14.61 billion at year-end 2023, including a $500 million RIE Senior Notes issuance in March 2024 and a $650 million PPL Electric First Mortgage Bonds issuance in January 2024.
Operating cash flow was $1.05 billiond for the six months, against capital expenditures of $1.27 billion. Key regulatory and legal items include the RIPUC's July 30, 2024 approval of a regulatory asset for electronic transaction fees, a pending PPL Electric DSIC petition requesting a cap increase from 5% to 9%, KU's Virginia rate request of approximately $9 million, a KPSC investigation into Winter Storm Elliott with a decision expected September 21, 2024, and a PAPUC settlement over PPL Electric billing issues with a $1 million donation to Operation HELP in place of a civil penalty.
02—Key points
Key Highlights
- Second-quarter net income was $190 million ($0.26 per share), up from $112 million ($0.15 per share) in the second quarter of 2023.
- Six-month net income was $497 million ($0.67 per share), up from $397 million ($0.54 per share) a year earlier.
- Earnings from Ongoing Operations, a non-GAAP measure, were $282 million for the quarter and $684 million for the six months, compared with $215 million and $567 million in 2023.
- Six-month operating revenues were $4.19 billion, down from $4.24 billion, primarily reflecting lower PPL Electric PLR revenue of $209 million.
- Long-term debt increased to $15.76 billion at June 30, 2024 from $14.61 billion at December 31, 2023, following the issuance of $500 million of RIE Senior Notes and $650 million of PPL Electric First Mortgage Bonds.
- Capital expenditures for property, plant and equipment were $1.27 billion for the six months, versus $1.09 billion a year earlier, and the Mill Creek Unit 5 project is estimated at approximately $1.0 billion including AFUDC.
- PPL Electric filed a petition with the PAPUC on April 26, 2024 to raise its maximum DSIC from 5% to 9% of billed revenues, with a final order anticipated at the January 23, 2025 Public Meeting.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2024filed August 2, 2024Financial Statements
Q2 FY2024 against Q2 FY2023
| Line item | Q2 FY2024Q2 FY2023 | Change |
|---|---|---|
| Revenue | $1.87B$1.82B | +2.9% |
| Operating Income | $390.00M$305.00M | +27.9% |
| Interest Expense | $182.00M$165.00M | +10.3% |
| Net Income | $190.00M$112.00M | +69.6% |
| EPS (Basic) | $0.26$0.15 | +73.3% |
| EPS (Diluted) | $0.26$0.15 | +73.3% |
| Shares Outstanding (Basic) | 737.75M737.08M | +0.1% |
| Shares Outstanding (Diluted) | 739.56M738.18M | +0.2% |
05—Questions
Frequently Asked Questions
How did PPL's earnings change in the second quarter of 2024?
Net income rose to $190 million, or $0.26 per share, from $112 million, or $0.15 per share, in the second quarter of 2023. Earnings from Ongoing Operations, a non-GAAP measure, increased to $282 million from $215 million.
What drove the change in operating results across the segments?
For the six months, Kentucky Regulated net income rose to $324 million from $257 million and Pennsylvania Regulated rose to $299 million from $248 million. Rhode Island Regulated net income increased to $76 million from $64 million. Corporate and Other losses widened to $202 million from $172 million.
How much new debt did PPL and its subsidiaries issue in 2024?
The filing reports a $500 million issuance of 5.35% Senior Notes due 2034 by RIE in March 2024, with net proceeds of $496 million, and a $650 million issuance of 4.85% First Mortgage Bonds due 2034 by PPL Electric in January 2024, with net proceeds of $644 million. Both proceeds are to be used to repay short-term debt and for general corporate purposes.
What regulatory matters could affect PPL's future results?
The PAPUC's decision on PPL Electric's DSIC petition is pending, with a final order anticipated on January 23, 2025. KU has requested an annual Virginia base rate increase of approximately $9 million, with new rates effective February 1, 2025 if approved. The KPSC investigation into LG&E and KU's conduct during Winter Storm Elliott is expected to be submitted for decision on September 21, 2024.
What is the status of the PPL Electric billing issue?
The PAPUC approved the settlement with modifications, converting the $1 million civil penalty into a $1 million donation to PPL Electric's hardship fund, Operation HELP. The settlement became final after the withdrawal period expired on June 14, 2024, and PPL Electric made the contribution on June 24, 2024. PPL Electric will not seek recovery of its billing-related costs, which totaled $17 million for the six months ended June 30, 2024.
06—Continue