PPL(US:PPL)2022-11-04 15:51Financial Performance - Operating revenues for Q3 2022 were $2,134 million, a 41.2% increase from $1,512 million in Q3 2021[82]. - Operating income for the nine months ended September 30, 2022, was $1,038 million, compared to $1,116 million for the same period in 2021, reflecting a decrease of 7.0%[82]. - Net income for the nine months ended September 30, 2022, was $566 million, a significant recovery from a net loss of $1,614 million in the same period of 2021[85]. - Basic earnings per share from continuing operations for Q3 2022 was $0.24, down from $0.27 in Q3 2021[82]. - Cash flows from operating activities for the nine months ended September 30, 2022, were $1,511 million, compared to $1,978 million in 2021, indicating a decrease of 23.5%[85]. - Operating income for the nine months ended September 30, 2022, was $639 million, compared to $557 million for the same period in 2021, indicating a 15% increase[93]. - Net income for the nine months ended September 30, 2022, was $410 million, compared to $335 million for the same period in 2021, reflecting a 22% increase[93]. - Basic EPS for PPL in the nine months ended September 30, 2022, was $0.77, compared to a loss of $2.10 in the same period of 2021[157]. - PPL's net income available to common shareholders for the nine months ended September 30, 2022, was $566 million, a significant recovery from a loss of $1,614 million in 2021[157]. Revenue Growth - Revenues from contracts with customers for PPL totaled $2,177 million for the three months ended September 30, 2022, compared to $1,527 million in the same period of 2021, marking a growth of 42.5%[146]. - PPL Electric's revenues from contracts with customers were $765 million for the three months ended September 30, 2022, an increase from $649 million in the same period of 2021, reflecting a rise of 17.9%[148]. - The Kentucky Regulated segment generated $978 million in revenues from contracts with customers for the three months ended September 30, 2022, compared to $872 million in the same period of 2021, indicating a growth of 12.1%[148]. - For the nine months ended September 30, 2022, total revenues from contracts with customers for PPL were $5,575 million, up from $4,345 million in the same period of 2021, representing an increase of 28.4%[146]. - The Rhode Island Regulated segment contributed $427 million in revenues from contracts with customers for the three months ended September 30, 2022, compared to no revenues in the same period of 2021[148]. Acquisitions and Investments - The company is focused on strategic acquisitions and dispositions, including the acquisition of Narragansett Electric, which may impact future performance[1]. - The acquisition of Narragansett Electric resulted in a cash outflow of $3,674 million, impacting the investing activities significantly[85]. - PPL's acquisition of Narragansett Electric on May 25, 2022, involved approximately $3.8 billion in cash and $1.5 billion of long-term debt assumed[216]. - The total cash consideration paid for Narragansett Electric was funded with proceeds from PPL's 2021 sale of its U.K. utility business[216]. - RIE will incur approximately $408 million in transition costs through June 30, 2024, with $41 million and $142 million expensed for the three and nine months ended September 30, 2022, respectively[223]. Regulatory and Compliance - The company is committed to compliance with environmental regulations, including the Clean Air Act, which influences its operational costs[1]. - PPL is monitoring the effects of climate change and regulatory changes on its business strategy and operational costs[1]. - Pennsylvania's corporate net income tax rate will decrease from 9.99% to 8.99% starting January 1, 2023, with further reductions planned until it reaches 4.99% in 2031[169]. - In Q3 2022, PPL recorded an increase in regulatory liabilities of $274 million for the remeasurement of regulated accumulated deferred tax balances[170]. - The regulatory asset for environmental cost recovery reflects deferred costs associated with remediation activities, with variances deferred for future recovery[180]. Financial Position - Total assets increased to $37,378 million as of September 30, 2022, up from $33,223 million at the end of 2021, representing a growth of 12.9%[86]. - Total current liabilities rose to $3,315 million as of September 30, 2022, compared to $2,323 million at December 31, 2021, marking a 43% increase[87]. - Long-term debt increased to $12,977 million as of September 30, 2022, up from $10,666 million at December 31, 2021, representing a 22% increase[87]. - Total liabilities and equity increased to $37,378 million as of September 30, 2022, from $33,223 million at December 31, 2021, reflecting a 12% increase[87]. - The company had cash and cash equivalents of $303 million at the end of Q3 2022, a decrease from $3,571 million at the end of 2021[86]. Challenges and Risks - The COVID-19 pandemic continues to affect economic conditions and supply chains, posing risks to the company's operations[1]. - PPL is actively managing risks associated with capital market conditions, including interest rates and commodity price volatility[1]. - The company faces challenges related to labor costs and the ability to attract and retain qualified employees, which could impact operational efficiency[1]. Dividends and Shareholder Returns - The company declared dividends of $0.225 per share for the three months ended September 30, 2022, compared to $0.415 per share for the same period in 2021[90]. - PPL declared a quarterly cash dividend of 22.5 cents per share, equivalent to 90.0 cents per annum, payable on October 3, 2022[213]. - PPL repurchased approximately $1 billion of its common shares in 2021, with an authorization for up to $3 billion in share repurchases[212].