Duke Energy(US:DUK)2023-05-08 16:00Earnings Performance - GAAP reported EPS for Q1 2023 was $1.01, down from $1.08 in Q1 2022, primarily due to unfavorable weather and higher interest expenses [350]. - Adjusted EPS for Q1 2023 was $1.20, compared to $1.29 in Q1 2022, reflecting similar challenges as GAAP EPS [351]. - The effective tax rate (ETR) increased from 10.4% in Q1 2022 to 15.5% in Q1 2023, attributed to a decrease in the amortization of excess deferred taxes [364]. - Duke Energy Carolinas reported a net income decrease of $68 million, from $340 million in Q1 2022 to $272 million in Q1 2023 [371]. - Duke Energy Indiana reported a net income of $106 million in Q1 2023, a significant increase of $185 million compared to a net loss of $79 million in Q1 2022 [390]. - Net income for the three months ended March 31, 2023, was $232 million, an increase of $18 million (approximately 8.4%) from $214 million in the same period of 2022 [395]. Revenue and Sales - Operating revenues for Electric Utilities and Infrastructure segment increased to $6.398 billion in Q1 2023 from $6.002 billion in Q1 2022, a variance of $396 million [357]. - Operating revenues for Gas Utilities and Infrastructure decreased by $121 million from $1,032 million in Q1 2022 to $911 million in Q1 2023 [361]. - Operating revenues for Progress Energy increased by $56 million, from $2,992 million in Q1 2022 to $3,048 million in Q1 2023 [375]. - Duke Energy Florida's operating revenues increased by $155 million (11.4%) to $1,510 million in Q1 2023, compared to $1,355 million in Q1 2022 [382]. - Duke Energy Ohio's total operating revenues increased by $71 million (11.1%) to $709 million in Q1 2023, compared to $638 million in Q1 2022 [386]. - Duke Energy Indiana's operating revenues increased by $153 million (18.6%) to $975 million in Q1 2023, compared to $822 million in Q1 2022 [390]. - Duke Energy Progress reported operating revenues of $1,533 million for Q1 2023, a decrease of $99 million (6.1%) compared to $1,632 million in Q1 2022 [379]. Operating Expenses - Fuel costs for electric generation rose by $559 million due to higher fuel prices and deferred fuel amortizations [359]. - Total operating expenses for Duke Energy Progress were $1,262 million, down $58 million (4.4%) from $1,320 million in the prior year [379]. - Total operating expenses decreased by $170 million (approximately 31.5%) to $369 million, primarily due to a $168 million reduction in the cost of natural gas [395]. Customer Metrics - The average number of customers for Duke Energy Carolinas increased by 1.6% compared to the prior year [372]. - The average number of customers increased by 1.5% year-over-year, indicating slight growth in customer base despite overall delivery declines [396]. Sales Volume - Total electric utilities and infrastructure GWh sales decreased to 58,246 GWh in Q1 2023 from 64,367 GWh in Q1 2022, a decline of 6,121 GWh [357]. - A $183 million decrease in retail sales was noted due to unfavorable weather conditions compared to the prior year [362]. - Duke Energy Progress experienced a 14.6% decrease in total sales, with residential sales down 7.4% and industrial sales down 25.0% [380]. - Duke Energy Florida's total sales decreased by 9.2%, with wholesale and other sales dropping significantly by 47.9% [383]. - Duke Energy Ohio's residential sales decreased by 5.4%, while industrial sales increased by 6.8% [387]. - Total throughput deliveries decreased by 10.4% year-over-year, with residential deliveries down 22.5% and commercial deliveries down 19.2% [396]. Financial Position - Cash flows from operating activities were $1,483 million, a decrease of $312 million (approximately 17.4%) compared to $1,795 million in the same period of 2022 [403]. - Capital, investment, and acquisition expenditures increased to $3,152 million, up $584 million (approximately 22.7%) from $2,568 million in the same period of 2022 [407]. - Issuances of long-term debt increased to $2,705 million, an increase of $414 million (approximately 18.1%) compared to $2,291 million in the same period of 2022 [409]. - As of March 31, 2023, Duke Energy had approximately $451 million in cash on hand and $5.4 billion available under its $9 billion Master Credit Facility [400]. Strategic Initiatives - Duke Energy Florida plans to add approximately 300 MW of solar capacity annually, currently operating 1,200 MW of solar in the state [341]. - The company began operating the largest battery system in North Carolina, an 11-MW project, in March 2023 [341]. - Duke Energy expects to complete the sale of its Commercial Renewables business in the second half of 2023, with proceeds aimed at debt avoidance [344]. - The company is monitoring supply chain disruptions that could impact future financial results and clean energy goals [345]. - Duke Energy implemented new customer rates effective April 1, 2023, following a comprehensive settlement in South Carolina [341].