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PPL 8-K Report, Financial Results (Feb 16, 2024)

Reports
Earnings & Results·Regulation FD·Exhibits & Filings
Filing Date
Filed February 16, 2024
Period End
February 16, 2024
Securities
PPLPPLC
In the record · 2016–202610-K1110-Q328-K239

PPL filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 239 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · May ’18May ’18
  2. Leadership change8-K · Jun ’20Jun ’20
  3. Deal closed8-K · May ’22May ’22
  4. Leadership change8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed February 16, 2024. Cited figures are marked; the original filing is the authoritative source.

PPL Corporation reported 2023 reported earnings (GAAP) of $740 milliona, or $1.00 per share, compared with $756 million, or $1.02 per share, in 2022.

Earnings from ongoing operations (non-GAAP) were $1.18 billionb, or $1.60 per share, compared with $1.04 billion, or $1.41 per share, a year earlier. Reported earnings were reduced by net special-item after-tax charges of $443 million, or $0.60 per share, primarily tied to Rhode Island Energy acquisition integration costs and the Talen litigation settlement. For the fourth quarter, reported earnings were $113 million, or $0.15 per share, and earnings from ongoing operations were $299 million, or $0.40 per share.

Management extended its 6% to 8% annual EPS and dividend growth targets through at least 2027, based on the midpoint of its 2024 earnings forecast range of $1.63 to $1.75c per share. The company increased planned infrastructure investments to $14.3 billion for 2024 through 2027, up from a prior plan of $11.9 billion, and expects 6.3% average annual rate base growth through 2027. It also announced a 7.3% increase in its quarterly common stock dividend, from $0.24 to $0.2575 per share, payable April 1, 2024.

PPL stated it expects to maintain a balance sheet among the best in the U.S. utility sector, with an FFO/CFO to debt ratio of 16%d to 18% through the updated planning period and no need for equity issuances through at least 2027. The filing also furnishes a press release and a webcast with financial analysts held on February 16, 2024, at 11:00 a.m. Eastern Time.

02—Key points

Key Highlights

  1. 2023 reported EPS was $1.00 versus $1.02 in 2022; earnings from ongoing operations EPS was $1.60 versus $1.41.
  2. 2024 earnings forecast range is $1.63 to $1.75 per share, with a midpoint of $1.69.
  3. EPS and dividend growth targets of 6% to 8% annually extended through at least 2027.
  4. Planned infrastructure investments increased to $14.3 billion for 2024 to 2027, up from $11.9 billion in the prior plan, with rate base growth of 6.3% annually.
  5. Quarterly common stock dividend increased 7.3%, from $0.24 to $0.2575 per share.
  6. Special items reduced 2023 reported earnings by $443 million, or $0.60 per share, mainly from the Talen litigation settlement and Rhode Island Energy integration costs.
  7. Management expects no equity issuances through at least 2027 while maintaining an FFO/CFO to debt ratio of 16% to 18%.

03—Questions

Frequently Asked Questions

  1. Why did reported earnings lag ongoing earnings in 2023?

    Reported 2023 earnings of $1.00 per share included $0.60 per share of net special-item after-tax charges, primarily from acquisition integration and related expenses for Rhode Island Energy and the Talen litigation settlement.

  2. What earnings guidance did PPL provide for 2024?

    PPL announced a 2024 earnings forecast range of $1.63 to $1.75 per share, with a midpoint of $1.69 per share, which the company said represents a 7% increase over the midpoint of its 2023 ongoing earnings per share target.

  3. How is PPL changing its capital plan and dividend policy?

    PPL increased planned infrastructure investments to $14.3 billion for 2024 through 2027 and raised its quarterly common stock dividend 7.3%, from $0.24 to $0.2575 per share, payable April 1, 2024, to shareowners of record as of March 8, 2024.

  4. Does PPL expect to issue new equity to fund its plan?

    No. PPL said its updated plan maintains strong credit metrics without the need for equity issuances, with an FFO/CFO to debt ratio of 16% to 18% projected through at least 2027.

04—Continue

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