PPL(US:PPL)2023-11-02 15:45Financial Performance - Operating revenues for Q3 2023 were $2,043 million, a decrease of 4.3% from $2,134 million in Q3 2022[81]. - Net income for Q3 2023 increased to $230 million, up 32.2% from $174 million in Q3 2022[83]. - Earnings per share for Q3 2023 were $0.31, compared to $0.24 in Q3 2022, reflecting a 29.2% increase[81]. - Total operating expenses for Q3 2023 were $1,606 million, down 10.4% from $1,793 million in Q3 2022[81]. - Cash flows from operating activities for the nine months ended September 30, 2023, were $1,648 million, an increase from $1,511 million in the same period of 2022[85]. - Net income for the nine months ended September 30, 2023, was $384 million, down from $410 million in the same period of 2022, representing a decline of 6.3%[94]. - Total operating income for the nine months ended September 30, 2023, was $646 million, slightly up from $639 million in the same period of 2022, reflecting a growth of 1.1%[94]. - Total operating revenues for the Kentucky Regulated segment decreased by 8.6% to $893 million in Q3 2023 from $977 million in Q3 2022[141]. - Net income for the Kentucky Regulated segment increased by 6.7% to $175 million in Q3 2023 compared to $164 million in Q3 2022[141]. Assets and Liabilities - Total assets as of September 30, 2023, were $38,629 million, up from $37,837 million at the end of 2022[86]. - Long-term debt increased to $14,484 million as of September 30, 2023, compared to $12,889 million at the end of 2022[88]. - The company’s regulatory assets increased to $1,787 million as of September 30, 2023, from $1,819 million at the end of 2022[86]. - Total current liabilities decreased from $1,223 million in December 2022 to $972 million in September 2023, a reduction of approximately 20.5%[101]. - Long-term debt increased from $4,146 million in December 2022 to $4,566 million in September 2023, representing a rise of about 10.1%[101]. - Total equity rose from $5,751 million in December 2022 to $6,025 million in September 2023, an increase of approximately 4.8%[104]. Dividends and Shareholder Returns - Dividends declared per share of common stock were $0.240 for the three months ended September 30, 2023, compared to $0.225 for the same period in 2022, indicating a 6.7% increase[91]. - The company declared dividends totaling $72 million in the three months ended September 30, 2023, compared to $235 million in the same period of 2022[104]. - PPL declared a quarterly cash dividend of 24.0 cents per share in August 2023, equivalent to an annual dividend of 96.0 cents per share, payable on October 2, 2023[215]. Regulatory and Compliance - The company is subject to regulations from the Federal Energy Regulatory Commission (FERC) and the Environmental Protection Agency (EPA)[42][43]. - The company has established an Environmental Response Fund to address past obligations related to manufactured gas plants[41]. - The company is entitled to recover costs associated with environmental compliance under the Environmental Cost Recovery (ECR) mechanism[39]. - RIE filed a petition on April 30, 2021, to recognize regulatory assets related to COVID-19 impacts, including increased customer accounts receivable and lost revenue from unassessed late payment charges[176]. - The RIPUC conditionally approved RIE's FY 2023 Gas ISR Plan with a revenue requirement, focusing on the Proactive Main Replacement Program and related capital investments[178]. Strategic Initiatives and Growth - The company is focused on strategic acquisitions and market expansion as part of its growth strategy[76]. - The company is committed to developing new projects and technologies to enhance its service offerings[76]. - The Electric Transportation Initiative aims to facilitate the growth of Electric Vehicle (EV) adoption in Rhode Island, although it has been paused in Rate Year 5[172]. - RIE filed a new Grid Modernization Plan (GMP) to enhance the electric distribution system, aligning with Rhode Island's climate mandates[175]. Risk Management - The company is actively managing risks associated with commodity prices and interest rates through hedging programs[76]. - The FERC ordered LG&E and KU to refund credits previously withheld, resulting in recorded regulatory liabilities of $3 million and $9 million related to potential refunds[188]. Acquisitions and Transactions - PPL Rhode Island Holdings acquired 100% of Narragansett Electric for approximately $3.8 billion on May 25, 2022, which now operates under the name Rhode Island Energy (RIE)[216]. - Transition services agreement costs incurred during the three and nine months ended September 30, 2023, amounted to $59 million and $179 million, respectively, related to the acquisition of Narragansett Electric[219]. - The allocation of the purchase price for Narragansett Electric resulted in a net decrease to goodwill of $1 million, with total goodwill from the acquisition recorded at $1,585 million[222]. Legal and Regulatory Proceedings - PPL is involved in ongoing legal proceedings related to the Talen Energy spinoff, with claims regarding an allegedly fraudulent transfer of approximately $900 million from the sale of hydroelectric assets[236].