01—Abstract
Summary
Summary of the 8-K filed November 1, 2024. Cited figures are marked; the original filing is the authoritative source.
PPL Corporation reported third-quarter 2024 reported earnings (GAAP) of $214 milliona, or $0.29 per share, compared with $230 million, or $0.31 per share, in the third quarter of 2023.
Earnings from ongoing operations (non-GAAP) were $310 millionb, or $0.42 per share, versus $317 million, or $0.43 per share, a year earlier. For the first nine months of 2024, reported earnings were $711 million, or $0.96 per share, and earnings from ongoing operations were $994 million, or $1.34 per share, compared with $1.20 per share in the same period of 2023. Special items were primarily integration and related expenses tied to the Rhode Island Energy acquisition.
Management narrowed its 2024 ongoing earnings forecast range to $1.67 to $1.73c per share from $1.63 to $1.75, raising the midpoint by one cent to $1.70 per share. The company reaffirmed projected annual earnings and dividend growth of 6% to 8% through at least 2027, based on the midpoint of its original 2024 forecast range. Management said it is on track to invest more than $3 billion in infrastructure in 2024 and expects O&M savings of $120 million to $130 million by the end of 2024, with at least $175 million targeted by 2026 from its 2021 baseline.
Other developments in the quarter included completion of the Rhode Island Energy integration and exit from the remaining transition service agreements with National Grid. Louisville Gas and Electric and Kentucky Utilities filed a triennial Integrated Resource Plan envisioning an estimated 2,700 MW to 3,200 MW of new natural gas, solar and battery storage through 2039. The company also noted growing interest from data center developers in its Pennsylvania and Kentucky service territories.
02—Key points
Key Highlights
- Q3 2024 reported EPS of $0.29 vs. $0.31 in Q3 2023; reported net income of $214 million vs. $230 million.
- Q3 2024 earnings from ongoing operations of $0.42 per share vs. $0.43 a year earlier.
- Nine-month 2024 earnings from ongoing operations of $1.34 per share vs. $1.20 in the first nine months of 2023; reported EPS of $0.96 vs. $0.85.
- 2024 ongoing earnings forecast narrowed to $1.67 to $1.73 per share, with the midpoint raised to $1.70 from $1.69.
- Reaffirmed projected annual earnings and dividend growth of 6% to 8% through at least 2027.
- Targeted annual O&M savings of at least $175 million by 2026 from the 2021 baseline, with $120 million to $130 million planned by end of 2024.
- Louisville Gas and Electric and Kentucky Utilities' IRP envisions 2,700 MW to 3,200 MW of new natural gas, solar and battery storage through 2039.
03—Questions
Frequently Asked Questions
Why did reported earnings decline in the third quarter of 2024?
Reported earnings were $214 million, or $0.29 per share, compared with $230 million, or $0.31 per share, in the third quarter of 2023. The filing attributes the decline mainly to special items, which were primarily integration and related expenses associated with the Rhode Island Energy acquisition, and to higher interest expense in the Corporate and Other category.
What changed in PPL's 2024 earnings guidance?
PPL narrowed its 2024 ongoing earnings forecast range to $1.67 to $1.73 per share from $1.63 to $1.75 per share, raising the midpoint by one cent to $1.70 per share. The company also reaffirmed projected annual earnings and dividend growth of 6% to 8% through at least 2027.
How did the segments perform in the quarter?
On an ongoing basis, Kentucky Regulated earned $0.24 per share, flat with a year ago; Pennsylvania Regulated earned $0.19, down from $0.20; Rhode Island Regulated earned $0.04, up from $0.03; and Corporate and Other was a loss of $0.05, compared with a loss of $0.04. Factors cited included an Environmental Cost Recovery revenue adjustment and higher sales volumes in Kentucky, and higher operating costs in Pennsylvania.
What infrastructure and investment plans did management highlight?
Management said it is investing more than $3 billion in infrastructure improvements to make the grid more resilient and support a cleaner energy future. The Kentucky IRP envisions an estimated 2,700 MW to 3,200 MW of new natural gas, solar and battery storage through 2039, and the company noted growing data center interest in its Pennsylvania and Kentucky territories.
04—Continue