PPL(US:PPL)2024-08-02 12:01Earnings Performance - PPL Corporation reported second-quarter 2024 earnings of $190 million, or $0.26 per share, a 70% increase from $112 million, or $0.15 per share in Q2 2023[2]. - Ongoing earnings per share for Q2 2024 were $0.38, up 31% from $0.29 in Q2 2023, with ongoing earnings from operations totaling $282 million[2][4]. - For the first six months of 2024, reported earnings were $497 million, or $0.67 per share, a 25% increase from $397 million, or $0.54 per share in the same period of 2023[2][4]. - Reported earnings for the second quarter of 2024 were $190 million, with ongoing operations earnings of $282 million after accounting for special items[23]. - The company reported earnings per share of $0.26 for the second quarter of 2024, with ongoing operations earnings per share of $0.38[24]. - Year-to-date earnings from ongoing operations as of June 30, 2024, were $684 million, reflecting a strong performance across segments[25]. - Reported earnings for the year-to-date June 30, 2023, totaled $397 million, with earnings from ongoing operations at $567 million[29]. Special Items and Adjustments - The second quarter of 2024 included net special-item after-tax charges of $92 million, or $0.12 per share, compared to $103 million, or $0.14 per share in Q2 2023[7]. - Special items reduced total earnings by $187 million year-to-date, primarily due to acquisition integration costs and strategic corporate initiatives[25]. - Special items reduced total earnings by $170 million, with significant impacts from acquisition integration costs of $134 million and other non-recurring charges[29]. - Special items for the 2024 forecast are expected to total $0.25 per share, primarily due to acquisition integration and strategic corporate initiatives[31]. Revenue and Sales Growth - Operating revenues for Q2 2024 were $1,881 million, an increase from $1,823 million in Q2 2023, representing a growth of 3.2%[20]. - Total electricity sales for the company increased by 7.2% year-over-year for the three months ended June 30, 2024, amounting to 15,875 GWh[22]. - Retail electricity sales in the PA regulated segment increased by 6.2% year-over-year for the three months ended June 30, 2024, reaching 8,587 GWh[22]. - KY regulated segment retail electricity sales rose by 8.1% year-over-year for the same period, totaling 7,158 GWh[22]. - The company experienced a 36.8% increase in wholesale electricity sales in the KY regulated segment for the three months ended June 30, 2024, totaling 130 GWh[22]. Cost Management and Savings - PPL aims for annual operation and maintenance savings of at least $175 million by 2026, with cumulative savings of $120-$130 million planned by the end of 2024[2]. - Total operating expenses for Q2 2024 were $1,491 million, a decrease from $1,518 million in Q2 2023, showing a reduction of 1.8%[20]. Future Outlook and Forecast - PPL reaffirmed its 2024 ongoing earnings forecast range of $1.63 to $1.75 per share, with a midpoint of $1.69 per share[2][13]. - The company expects annual earnings and dividend growth of 6% to 8% through at least 2027, based on the midpoint of its 2024 ongoing earnings forecast[2][13]. - The forecast for reported earnings in 2024 is set at a midpoint of $1.44 per share, with a range between $1.38 and $1.50[31]. - The company anticipates earnings from ongoing operations in 2024 to be between $1.63 and $1.75 per share[31]. Capital Expenditures and Investments - Capital expenditures for property, plant, and equipment were $1,266 million for the six months ended June 30, 2024, up from $1,090 million in the same period of 2023, representing a rise of 16.1%[21]. - PPL's infrastructure investments are projected at $14.3 billion through 2027, focusing on enhancing energy networks and deploying smart grid technology[2]. Financial Position - The company reported a net cash provided by operating activities of $1,048 million for the six months ended June 30, 2024, compared to $842 million for the same period in 2023, indicating a 24.5% increase[21]. - The total assets of PPL Corporation as of June 30, 2024, were $39,839 million, an increase from $39,236 million at the end of 2023, reflecting a growth of 1.5%[19]. - Long-term debt increased to $15,756 million as of June 30, 2024, compared to $14,611 million at the end of 2023, marking an increase of 7.8%[19]. - The company’s cash and cash equivalents at the end of the period were $324 million, a slight decrease from $327 million at the end of June 2023[21]. - PPL Corporation's regulatory assets increased to $335 million as of June 30, 2024, from $293 million at the end of 2023, indicating a growth of 14.3%[19]. Strategic Initiatives - The company is focused on strategic corporate initiatives and acquisition integration to enhance operational efficiency and market position[27]. - The integration costs associated with the acquisition of Rhode Island Energy are a significant factor in both current and future earnings[31]. - User data indicates a stable performance across regions, with Kentucky reporting earnings of $263 million and Pennsylvania $254 million[29].