ALLENTOWN, Pa. – No doubt, PPL top executives like their business and their work. But even they will admit in the eyes of Wall Street, electric power companies are pretty dull stuff. The company even says it directly in its Investment Thesis – be visible and predictable.
So, when the company reported second quarter results that largely beat analysts’ estimates, the Street yawned, and the stock declined $0.11. That’s no big deal when you consider that PPL’s stock has traded in just a $6.00 window in the past 52 weeks.
"PPL's strong second-quarter financial performance put us squarely on track to achieve our 2022 earnings guidance, and with our acquisition of Rhode Island Energy now complete, we are excited to deliver on the business plan we shared during our recent Investor Day," said PPL President and Chief Executive Officer Vincent Sorgi.
PPL announced second-quarter 2022 reported GAAP (Generally Accepted Accounting Principles) earnings of $119 million, or $0.16 per share, compared with second-quarter 2021 reported earnings of $19 million, or $0.03 per share. For the first six months of 2022, PPL reported earnings of $392 million, or $0.53 per share, compared with the reported net loss of $1.82 billion, or $2.37 per share, for the first six months of 2021.
Adjusting for special items, second-quarter 2022 earnings from ongoing operations (non-GAAP) were $222 million, or $0.30 per share, compared with $147 million, or $0.19 per share, a year ago.
Earnings from ongoing operations for the first six months of 2022 were $527 million, or $0.71 per share, compared with $366 million, or $0.47 per share, for the first six months of 2021.
Special items in the second quarter of 2022 primarily included integration expenses associated with the acquisition of Rhode Island Energy.
"Our plan is focused on providing superior reliability and affordability for our customers, driving operational excellence, delivering top-tier annual earnings per share and dividend growth of 6% to 8% annually, and leading the clean energy transition in the regions we serve," added Sorgi. "Looking ahead, we're well positioned to deliver on this plan, with $27 billion in regulated investment opportunity through 2030."
PPL's Pennsylvania Regulated segment consists of the regulated electricity delivery operations of PPL Electric Utilities.
Reported earnings in the second quarter of 2022 increased by $0.05 per share compared with a year ago. Earnings from ongoing operations in the second quarter of 2022 increased by $0.04 per share compared with a year ago. Factors driving earnings results primarily included higher peak transmission demand, returns on additional capital investments in transmission and share accretion.
Reported earnings for the first six months of 2022 increased by $0.09 per share compared with a year ago. Earnings from ongoing operations in the first quarter of 2022 increased by $0.06 per share compared with 2021. Factors driving earnings results primarily included higher peak transmission demand, returns on additional capital investments in transmission, higher sales volumes and share accretion, partially offset by higher operation and maintenance expense.
PPL's Kentucky Regulated segment primarily consists of the regulated electricity and natural gas operations of Louisville Gas and Electric Company and the regulated electricity operations of Kentucky Utilities Company.
Reported earnings and earnings from ongoing operations in the second quarter of 2022 increased by $0.03 per share compared with a year ago. Factors driving earnings results primarily included higher retail rates effective July 1, 2021, and higher sales volumes, partially offset by higher depreciation expense and higher operation and maintenance expense.
In the first six months of 2022, reported earnings increased by $0.08 per share compared with a year ago. Earnings from ongoing operations in the first six months of 2022 increased by $0.10 per share compared with 2021. Factors driving earnings results were the same as those driving second quarter results.
