PPL(US:PPL)2024-08-02 16:29Financial Performance - Operating revenues for Q2 2024 were $1,881 million, an increase from $1,823 million in Q2 2023, representing a growth of 3.2%[38] - Operating income for the first half of 2024 was $935 million, compared to $803 million in the same period of 2023, reflecting a 16.4% increase[38] - Net income for Q2 2024 was $190 million, up from $112 million in Q2 2023, marking a significant increase of 69.6%[38] - Earnings per share (EPS) for Q2 2024 were $0.26, compared to $0.15 in Q2 2023, indicating a growth of 73.3%[38] - For the six months ended June 30, 2024, net income was $497 million, up from $397 million in the same period last year, reflecting a 25% growth[42] - Net income for the six months ended June 30, 2024, was $299 million, an increase from $248 million for the same period in 2023, representing a growth of 20.6%[54] - Net income for the three months ended June 30, 2024, was $62 million, compared to $45 million for the same period in 2023, showing a growth of 37.8%[65] - Net income for the Kentucky Regulated segment increased to $134 million for the three months ended June 30, 2024, compared to $91 million for the same period in 2023, representing a growth of 47.3%[97] - The total net income for PPL Electric was $190 million for the three months ended June 30, 2024, compared to $112 million for the same period in 2023, representing a significant increase of 69.6%[97] - Net income for the six months ended June 30, 2024, increased to $155 million, up from $131 million in the same period last year, representing a growth of approximately 18.3%[69] Operating Expenses - Total operating expenses decreased to $1,491 million in Q2 2024 from $1,518 million in Q2 2023, a reduction of 1.8%[38] - Total operating expenses for the three months ended June 30, 2024, were $437 million, down from $474 million in the same period of 2023, indicating a decrease of 7.8%[50] - Total Operating Expenses for Q2 2024 were $338 million, slightly down from $340 million in Q2 2023[79] - Total operating expenses decreased to $265 million from $273 million year-over-year, a reduction of 2.9%[65] Cash Flow and Investments - Cash provided by operating activities for the six months ended June 30, 2024, was $1,048 million, compared to $842 million for the same period in 2023, indicating a 24% increase[42] - Cash provided by operating activities for the six months ended June 30, 2024, was $353 million, up from $236 million in the same period in 2023, marking a growth of 49.8%[54] - The company’s net cash used in investing activities for the six months ended June 30, 2024, was $1,020 million, compared to $398 million in the same period of 2023, indicating a significant increase in investment outflows[54] - Cash provided by Operating Activities for the six months ended June 30, 2024, was $352 million, an increase from $298 million in the same period last year[82] Assets and Liabilities - Total assets as of June 30, 2024, amounted to $39,839 million, an increase from $39,236 million at the end of 2023[44] - Current liabilities decreased to $2,515 million as of June 30, 2024, from $3,340 million at the end of 2023, showing a reduction of 25%[45] - 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 8% rise[45] - Total equity rose to $14,065 million as of June 30, 2024, up from $13,933 million at the end of 2023, reflecting a 1% increase[45] - Total assets increased to $15,229 million as of June 30, 2024, up from $14,294 million at December 31, 2023, representing a growth of 6.5%[55] - Current assets rose significantly to $1,430 million, compared to $869 million at the end of 2023, marking a 64.5% increase[55] - Long-term debt increased to $5,212 million from $4,567 million, reflecting a rise of 14.1%[57] - Total equity grew to $6,698 million, up from $5,903 million, indicating an increase of 13.5%[57] Regulatory and Compliance - The company is focused on enhancing its energy efficiency programs and exploring new technologies to support sustainable growth[33] - The company is currently reviewing IRS Revenue Procedure 2023-15 to assess its impact on financial statements, which may affect accounting for expenses related to natural gas transmission and distribution property[120] - PPL does not anticipate a material impact on financial statements regarding prior or future credit transfers under the Inflation Reduction Act, as per the final regulations effective July 1, 2024[122] - The allowed return on equity (ROE) rate for Rhode Island activities is set at 9.275% based on a common equity ratio of approximately 51%[127] Debt and Financing - The company issued $649 million in long-term debt during the six months ended June 30, 2024, compared to $1,329 million in the same period of 2023[54] - PPL issued $650 million of 4.85% First Mortgage Bonds due 2034 in January 2024, receiving proceeds of $644 million for general corporate purposes[155] - The total capacity of PPL Capital Funding's syndicated credit facility is $1.25 billion, with $280 million in commercial paper outstanding as of June 30, 2024[152] - LG&E and KU's credit facilities include a $500 million syndicated credit facility expiring in December 2028, with $490 million unused capacity as of June 30, 2024[151] Revenue Sources - Total Operating Revenues for Q2 2024 reached $464 million, a 6.7% increase from $435 million in Q2 2023[79] - PPL's operating revenues for the six months ended June 30, 2024, were $4,238 million, compared to $4,269 million for the same period in 2023, reflecting a decrease of approximately 0.7%[104] - Revenues from contracts with customers for PPL Electric in the first six months of 2024 were $1,558 million, consistent with the same period in 2023[104] - PPL's residential revenues for the first six months of 2024 were $1,927 million, down from $2,079 million in 2023, a decrease of about 7.3%[106] - The Kentucky Regulated segment's revenues for the first six months of 2024 were $1,810 million, compared to $1,733 million in 2023, indicating an increase of about 4.4%[107] Environmental and Regulatory Costs - Storm damage costs accounted for $38 million as of June 30, 2024, up from $12 million in December 2023, showing a significant rise of 216.7%[123] - PPL Electric recorded a liability of $8 million for environmental remediation activities as of June 30, 2024[175] - PPL reported a recorded liability of $99 million for RIE's environmental remediation activities, expected to be incurred over approximately 30 years[177] - RIE has recovered amounts from certain insurers and may seek additional recovery, but the success of these efforts is uncertain[177] Miscellaneous Income and Expenses - Other Income (Expense) - net for the three months ended June 30, 2024, was $32 million, compared to $5 million in the same period of 2023, representing a significant increase[192] - Interest income for the six months ended June 30, 2024, decreased to $15 million from $17 million in 2023, reflecting a decline of approximately 11.76%[192] - Other Income (Expense) - net for the six months ended June 30, 2024, totaled $54 million, up from $35 million in 2023, indicating a rise of 54.29%[192] - Miscellaneous income for the three months ended June 30, 2024, was $1 million, compared to $(10) million in the same period of 2023, showing a turnaround[192]