PG&E (US:PCG)2021-10-31 16:00Financial Performance - PG&E Corporation reported a significant restructuring following its emergence from Chapter 11, impacting historical financial performance[15] - PG&E Corporation reported a net loss of $1,088 million for the three months ended September 30, 2021, compared to a net income of $86 million in the same period of 2020[22] - The company reported a comprehensive loss attributable to common shareholders of $1,090 million for the three months ended September 30, 2021, compared to a comprehensive income of $83 million in the same period of 2020[22] - Net income for Q3 2021 was a loss of $1,042 million, compared to a profit of $170 million in Q3 2020[31] - Operating income decreased to $306 million in Q3 2021 from $377 million in Q3 2020, reflecting a decline of 19%[31] - Net income for the nine months ended September 30, 2021, was a loss of $425 million, a decline from a net income of $148 million for the same period in 2020[38] Assets and Liabilities - Total current assets increased to $11,527 million as of September 30, 2021, up from $9,602 million at the end of 2020, driven by higher regulatory balancing accounts[24] - Total assets reached $103,561 million as of September 30, 2021, compared to $97,856 million at the end of 2020, reflecting growth in property, plant, and equipment[24] - Current liabilities rose to $17,784 million as of September 30, 2021, compared to $13,581 million at the end of 2020, primarily due to an increase in wildfire-related claims[25] - Long-term debt decreased to $35,959 million as of September 30, 2021, from $37,288 million at the end of 2020, indicating a reduction in leverage[25] - Total current liabilities increased to $17,730 million from $13,496 million, reflecting a rise of approximately 31.5%[36] - Long-term debt decreased to $31,366 million from $32,664 million, a reduction of about 4%[36] Revenue and Expenses - Total operating revenues for Q3 2021 reached $5,465 million, a 12% increase from $4,882 million in Q3 2020[31] - Total operating expenses increased to $5,159 million in Q3 2021, up from $4,505 million in Q3 2020, marking a 15% rise[31] - The cost of natural gas surged to $176 million in Q3 2021, compared to $90 million in Q3 2020, representing a 96% increase[31] - Total operating revenues for the nine months ended September 30, 2021, reached $15,396 million, up from $13,721 million in 2020[68] Wildfire-Related Issues - The company faces ongoing investigations related to wildfires, including potential liabilities and penalties, which could affect future financial results[15] - PG&E's ability to access the Wildfire Fund remains uncertain, with concerns about the sufficiency of remaining funds[16] - The company aims to securitize up to $1.19 billion for fire risk mitigation expenditures incurred in 2020 and 2021[17] - PG&E Corporation's initial contribution to the Wildfire Fund was approximately $4.8 billion, with annual contributions of approximately $193 million expected for ten years[69] - The Utility's Wildfire Fund allocation metric is 64.2%, reflecting its share of the total contributions required from California's large electric IOUs[69] - PG&E Corporation has committed $5.4 billion in cash and common stock to settle fire victim claims as part of the Restructuring Support Agreement[152] Regulatory and Compliance - The Utility's implementation of its Public Safety Power Shutoff (PSPS) program may lead to fines and reputational damage, affecting operational costs[16] - Regulatory assets increased to $9,479 million as of September 30, 2021, compared to $8,978 million at the end of 2020, reflecting ongoing regulatory activities[24] - Regulatory balancing accounts allow the Utility to recover costs authorized by the CPUC, independent of sales volume, ensuring revenue stability[66] - The Utility's ability to recover costs for electricity and natural gas purchases is based on regulatory approvals, impacting revenue recognition[67] Operational Challenges - The impact of the COVID-19 pandemic on financial condition and energy demand is a significant concern for PG&E[17] - The Utility is navigating challenges related to customer demand shifts towards Community Choice Aggregators (CCAs) and direct access providers[17] - The company is subject to various risks, including operational disruptions from cyber or physical attacks, which could impact service reliability[17] Capital Expenditures and Investments - Capital expenditures for the nine months ended September 30, 2021, were $5,468 million, slightly down from $5,475 million in the previous year[38] - Capital expenditures financed through accounts payable totaled $963 million, up from $404 million in the previous period[28] Insurance and Liabilities - The Utility has liability insurance coverage of $430 million for third-party liability related to the Kincade fire, which has been fully recorded as an insurance receivable[169] - PG&E Corporation recorded a liability of $275 million for the 2020 Zogg fire for the year ended December 31, 2020, with an additional charge of $25 million for Q1 2021 and $75 million for Q2 2021, totaling $375 million[178] - The Utility has recorded $430 million for probable insurance recoveries related to the 2019 Kincade fire and $331 million for the 2020 Zogg fire[205] Equity and Shareholder Information - PG&E Corporation established an at-the-market equity distribution program with a gross sales price of up to $400 million for its common stock[106] - As of September 30, 2021, PG&E Corporation had $400 million available under its at-the-market equity distribution program for future offerings[108] - PG&E Corporation's basic EPS for the three months ended September 30, 2021, was $(0.55), compared to $0.04 for the same period in 2020[121]