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PPL 8-K Report, Financial Results (Aug 2, 2024)

Reports
Earnings & Results·Regulation FD·Exhibits & Filings
Filing Date
Filed August 2, 2024
Period End
August 2, 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 August 2, 2024. Cited figures are marked; the original filing is the authoritative source.

PPL Corporation reported second-quarter 2024 reported earnings (GAAP) of $190 milliona, or $0.26 per share, compared with $112 million, or $0.15 per share, in the second quarter of 2023.

Earnings from ongoing operations (non-GAAP) were $282 millionb, or $0.38 per share, versus $215 million, or $0.29 per share, a year earlier. For the first six months of 2024, reported earnings were $497 million ($0.67 per share) and earnings from ongoing operations were $684 million ($0.92 per share). Special items in both periods were primarily integration and related expenses tied to the acquisition of Rhode Island Energy.

Management reaffirmed its 2024 ongoing earnings forecast of $1.63 to $1.75c per share, with a midpoint of $1.69 per share, and reaffirmed projected annual earnings and dividend growth of 6% to 8% through at least 2027. The company also reaffirmed targeted annual operation and maintenance savings of at least $175 million by 2026 from its 2021 baseline, with $120 to $130 million of annual savings planned by the end of 2024. CEO Vincent Sorgi cited continued execution of the utility of the future strategy and planned $14.3 billion of infrastructure investments through 2027.

By segment, Kentucky Regulated and Pennsylvania Regulated drove ongoing earnings growth in the quarter, citing higher sales volumes and, in Pennsylvania, higher transmission revenue. Electricity retail deliveries rose in both segments for the quarter. Corporate and Other ongoing results were a loss of $0.05d per share, reflecting higher interest expense.

The filing also furnishes the earnings release and a teleconference and webcast held August 2, 2024 at 11:00 a.m. Eastern Time.

02—Key points

Key Highlights

  1. Q2 2024 reported EPS of $0.26 (GAAP) versus $0.15 in Q2 2023; reported net income of $190 million versus $112 million.
  2. Q2 2024 earnings from ongoing operations (non-GAAP) of $0.38 per share, up from $0.29 per share, or $282 million versus $215 million.
  3. Six-month 2024 earnings from ongoing operations of $0.92 per share ($684 million), compared with $0.77 per share ($567 million) in the first six months of 2023.
  4. 2024 ongoing earnings forecast reaffirmed at $1.63 to $1.75 per share, midpoint $1.69 per share.
  5. Projected 6% to 8% annual earnings and dividend growth reaffirmed through at least 2027.
  6. Operation and maintenance savings target of at least $175 million annually by 2026 from the 2021 baseline reaffirmed; $120 to $130 million planned by end of 2024.
  7. Planned $14.3 billion of infrastructure investments through 2027, with emphasis on grid hardening, smart grid technology and resiliency.

03—Questions

Frequently Asked Questions

  1. Did PPL meet its earnings expectations for the second quarter of 2024?

    The filing reports second-quarter earnings from ongoing operations of $0.38 per share, up from $0.29 per share a year earlier. It does not state analyst consensus expectations, but management said the quarter was strong and that it expects to achieve at least the midpoint of its 2024 forecast.

  2. What is the difference between reported and ongoing earnings for PPL in Q2 2024?

    Reported earnings were $0.26 per share ($190 million), while earnings from ongoing operations were $0.38 per share ($282 million). The $0.12 per share gap reflects net special-item after-tax charges of $92 million, primarily integration and related expenses from the Rhode Island Energy acquisition.

  3. Has PPL changed its long-term growth outlook?

    No. PPL reaffirmed projected annual earnings and dividend growth of 6% to 8% through at least 2027, based on the midpoint of its 2024 ongoing earnings forecast range.

  4. Which segments drove the quarter's results?

    Kentucky Regulated and Pennsylvania Regulated each increased ongoing earnings by $0.05 per share, driven by higher sales volumes (weather in Kentucky) and, in Pennsylvania, higher transmission revenue. Rhode Island Regulated rose $0.01 per share, while Corporate and Other declined $0.02 per share on higher interest expense.

  5. What operating efficiency and capital plans did management reaffirm?

    Management reaffirmed at least $175 million of annual operation and maintenance savings by 2026 from its 2021 baseline, with $120 to $130 million of annual savings planned by the end of 2024, and $14.3 billion of infrastructure investments planned through 2027.

04—Continue

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