PPL(US:PPL)2024-05-01 15:37Financial Performance - Operating revenues for Q1 2024 were $2,304 million, a decrease of 4.6% compared to $2,415 million in Q1 2023[74]. - Total operating expenses decreased to $1,759 million in Q1 2024 from $1,917 million in Q1 2023, reflecting a reduction of 8.3%[74]. - Operating income increased to $545 million in Q1 2024, up 9.4% from $498 million in Q1 2023[74]. - Net income for Q1 2024 was $307 million, representing an increase of 7.7% compared to $285 million in Q1 2023[74]. - Earnings per share (EPS) for Q1 2024 were $0.42, up from $0.39 in Q1 2023, marking a growth of 7.7%[74]. - Net income for Q1 2024 was $307 million, an increase of 7.7% compared to $285 million in Q1 2023[87]. - Operating revenues decreased to $770 million in Q1 2024, down 13.6% from $891 million in Q1 2023[87]. - Net income for the three months ended March 31, 2024, increased to $149 million, up from $138 million in the same period of 2023, representing an increase of 8%[89]. - Net income for Kentucky Utilities Company was $108 million for the three months ended March 31, 2024, up from $88 million in the same period of 2023, indicating a growth of 22.73%[111]. - Operating revenues for Kentucky Utilities Company increased to $525 million in Q1 2024, compared to $499 million in Q1 2023, reflecting a growth of 5.21%[111]. - Net income for the three months ended March 31, 2024, was $108 million, compared to $88 million for the same period in 2023, reflecting a 22.7% year-over-year growth[119]. - Total revenues for PPL in Q1 2024 were $2,303 million, a decrease of 5.9% compared to $2,447 million in Q1 2023[135]. - The net income attributable to PPL for Q1 2024 was $307 million, compared to $285 million in Q1 2023, reflecting an increase of 7.7%[144]. - Basic and diluted earnings per share (EPS) for Q1 2024 were $0.42, up from $0.39 in Q1 2023, indicating a growth of 7.7%[144]. Cash Flow and Investments - Cash provided by operating activities was $282 million, down 34.4% from $430 million in Q1 2023[77]. - Cash used in investing activities increased to $591 million, compared to $503 million in Q1 2023, reflecting higher expenditures for property, plant, and equipment[77]. - Net cash provided by operating activities for the three months ended March 31, 2024, was $28 million, down from $39 million in the same period of 2023, a decrease of 28%[89]. - Net cash used in investing activities for the three months ended March 31, 2024, was $780 million, compared to $156 million in the same period of 2023, indicating a significant increase in cash outflow[89]. - Expenditures for property, plant, and equipment for the three months ended March 31, 2024, were $229 million, compared to $155 million in the same period of 2023, an increase of 48%[89]. - PPL Electric purchased $419 million of accounts receivable from alternative suppliers during the three months ended March 31, 2024[177]. Assets and Liabilities - Long-term debt increased to $15.753 billion as of March 31, 2024, up from $14.611 billion at the end of 2023[80]. - Total assets rose to $39.631 billion, compared to $39.236 billion at the end of 2023, indicating a growth of 1.0%[78]. - The company reported a decrease in cash and cash equivalents to $276 million from $331 million at the end of 2023[78]. - Total current assets as of March 31, 2024, rose to $1,539 million, compared to $869 million at the end of 2023, indicating a significant increase of 77%[91]. - Long-term debt increased to $5,211 million as of March 31, 2024, compared to $4,567 million at the end of 2023, reflecting a rise of 14%[93]. - Total assets increased to $15,116 million as of March 31, 2024, from $14,294 million at the end of 2023, marking a growth of 6%[93]. - The company reported a total equity of $6,639 million as of March 31, 2024, up from $5,903 million at the end of 2023, an increase of 12%[93]. - Total liabilities increased to $4,621 million as of March 31, 2024, compared to $4,581 million at the end of 2023, representing a rise of approximately 0.87%[105]. - The total assets for the Kentucky Regulated segment were $17,074 million as of March 31, 2024, up from $17,029 million at December 31, 2023, indicating a 0.3% increase[129]. - The total liabilities and equity for Kentucky Utilities Company reached $9,773 million as of March 31, 2024, compared to $9,714 million at December 31, 2023, reflecting a 0.6% increase[117]. Dividends and Shareholder Returns - The company declared dividends of $0.2575 per share for Q1 2024, up from $0.2400 per share in Q1 2023[83]. - Dividends declared for the three months ended March 31, 2024, amounted to $47 million, compared to $35 million for the same period in 2023, representing a 34.3% increase[119]. - PPL declared a quarterly cash dividend of 25.75 cents per share, equivalent to $1.03 per annum, payable on April 1, 2024[188]. Strategic Outlook and Initiatives - The company is focused on strategic acquisitions and market expansion as part of its future outlook[68]. - The company anticipates continued investment in new technologies and projects to enhance operational efficiency and customer service[68]. - RIE plans to seek recovery of regulatory assets related to waived electronic transaction fees in its next base distribution rate case[162]. - The Electric Transportation Initiative aims to facilitate the growth of Electric Vehicle (EV) adoption in Rhode Island[158]. - RIE's FY 2024 Gas ISR Plan approved with a total capital investment of $163 million[164]. - RIE's FY 2025 Gas ISR Plan includes a budget of $185 million, with an additional $11 million contingency for potential regulatory changes[165]. - RIE's FY 2024 Electric ISR Plan approved with a total capital investment of $112 million[166]. - RIE's FY 2025 Electric ISR Plan approved with a total capital investment of $132 million[168]. Regulatory and Compliance - The company is currently reviewing IRS Revenue Procedure 2023-15 to assess its impact on financial statements[152]. - PPL is also evaluating the final regulations related to the transfer of certain credits under the Inflation Reduction Act, effective July 1, 2024[153]. - The Rhode Island Division of Public Utilities and Carriers filed a motion to dismiss RIPUC Docket No. 22-05-EE, stating sufficient evidence exists for an independent summary investigation, including an audit of RIE[200]. - The Division recommended the RIPUC disallow a portion of the performance incentive awarded from 2012 through 2021, and assess financial penalties on the Company[200]. - The KPSC initiated an investigation into LG&E and KU's practices during Winter Storm Elliott affecting approximately 55,000 customers[169]. Environmental and Operational Changes - RIE recorded a liability of $98 million as of March 31, 2024, representing the best estimate of remaining costs for environmental remediation activities, expected to be incurred over approximately 30 years[213]. - RIE recovers approximately $3 million annually for electric operations and $1 million annually for gas operations under a distribution adjustment charge for qualified remediation costs[214]. - LG&E and KU received KPSC approval for a compliance plan for the closure of impoundments at multiple stations, with expected completion within five years[206]. - The EPA released a final rule modifying the 2020 ELG revisions, which could result in significant operational changes and additional controls for LG&E and KU plants[203]. - The Registrants are potentially responsible for investigating and remediating contamination under the federal Superfund program, with ongoing actions at certain sites[208]. Debt and Financing - PPL Capital Funding has a $1.25 billion syndicated credit facility with a borrowing sublimit of $400 million for RIE and $850 million for PPL Capital Funding as of March 31, 2024[180]. - RIE issued $500 million of 5.35% Senior Notes due 2034, with proceeds of $496 million used to repay short-term debt and for general corporate purposes[186]. - PPL Electric issued $650 million of 4.85% First Mortgage Bonds due 2034, receiving proceeds of $644 million for similar purposes[187]. - PPL fully guarantees all debt securities and loan obligations of PPL Capital Funding, enhancing creditworthiness for its subsidiaries[222]. Miscellaneous - The weighted average interest rate for PPL Capital Funding's commercial paper was 5.51% as of March 31, 2024[182]. - Total cash, cash equivalents, and restricted cash decreased from $382 million on December 31, 2023, to $321 million on March 31, 2024, representing a decline of 16%[236]. - Total assets increased from $401 million on December 31, 2023, to $338 million on March 31, 2024, indicating a decrease of 15.7%[236]. - Total price risk management liabilities rose from $67 million on December 31, 2023, to $39 million on March 31, 2024, reflecting a decrease of 41.8%[236].