PPL Corporation Reports Third-Quarter 2020 Earnings
Reported earnings for the first nine months of 2020 were
Adjusting for special items, third-quarter 2020 earnings from ongoing operations (non-GAAP) were
Earnings from ongoing operations for the first nine months of 2020 were
"Despite the ongoing challenge of COVID-19, we continue to provide superior customer service and reliability across all of our service territories, to strengthen grid resilience, and to deliver when it matters most for our hospitals, first responders and the many people now working and learning from home," said
"And while COVID-19 and milder weather through the first half of the year have impacted PPL's ongoing earnings, we are on track to achieve the low end of our earnings guidance and have narrowed our 2020 guidance range to
Looking ahead, the company continues to invest in a sustainable energy future through innovation, network upgrades and support for research and development, including the Low-Carbon Resources Initiative recently announced by the
Regarding PPL's
Third-Quarter 2020 Earnings Details
As discussed in this news release, reported earnings are calculated in accordance with
(Dollars in millions, except for per-share |
3rd Quarter |
|
Year to Date |
||||||||||||||||||
|
2020 |
|
2019 |
|
Change |
|
2020 |
|
2019 |
|
Change |
||||||||||
Reported earnings |
$ |
281 |
|
|
$ |
475 |
|
|
(41) |
% |
|
$ |
1,179 |
|
|
$ |
1,382 |
|
|
(15) |
% |
Reported earnings per share |
$ |
0.37 |
|
|
$ |
0.65 |
|
|
(43) |
% |
|
$ |
1.53 |
|
|
$ |
1.89 |
|
|
(19) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
3rd Quarter |
|
Year to Date |
||||||||||||||||||
|
2020 |
|
2019 |
|
Change |
|
2020 |
|
2019 |
|
Change |
||||||||||
Earnings from ongoing operations |
$ |
450 |
|
|
$ |
445 |
|
|
1 |
% |
|
$ |
1,391 |
|
|
$ |
1,375 |
|
|
1 |
% |
Earnings from ongoing operations per share |
$ |
0.58 |
|
|
$ |
0.61 |
|
|
(5) |
% |
|
$ |
1.81 |
|
|
$ |
1.88 |
|
|
(4) |
% |
Third-Quarter 2020 Earnings by Segment
|
3rd Quarter |
|
Year to Date |
||||||||||||
Per share |
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Reported earnings |
|
|
|
|
|
|
|
||||||||
|
$ |
0.07 |
|
|
$ |
0.32 |
|
|
$ |
0.74 |
|
|
$ |
1.07 |
|
Kentucky Regulated |
0.17 |
|
|
0.20 |
|
|
0.43 |
|
|
0.50 |
|
||||
Pennsylvania Regulated |
0.17 |
|
|
0.16 |
|
|
0.48 |
|
|
0.46 |
|
||||
Corporate and Other |
(0.04) |
|
|
(0.03) |
|
|
(0.12) |
|
|
(0.14) |
|
||||
Total |
$ |
0.37 |
|
|
$ |
0.65 |
|
|
$ |
1.53 |
|
|
$ |
1.89 |
|
|
|
|
|
|
|
|
|
||||||||
|
3rd Quarter |
|
Year to Date |
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Special items (expense) benefit |
|
|
|
|
|
|
|
||||||||
|
$ |
(0.21) |
|
|
$ |
0.04 |
|
|
$ |
(0.26) |
|
|
$ |
0.02 |
|
Kentucky Regulated |
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Pennsylvania Regulated |
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Corporate and Other |
— |
|
|
— |
|
|
(0.02) |
|
|
(0.01) |
|
||||
Total |
$ |
(0.21) |
|
|
$ |
0.04 |
|
|
$ |
(0.28) |
|
|
$ |
0.01 |
|
|
|
|
|
|
|
|
|
||||||||
|
3rd Quarter |
|
Year to Date |
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Earnings from ongoing operations |
|
|
|
|
|
|
|
||||||||
|
$ |
0.28 |
|
|
$ |
0.28 |
|
|
$ |
1.00 |
|
|
$ |
1.05 |
|
Kentucky Regulated |
0.17 |
|
|
0.20 |
|
|
0.43 |
|
|
0.50 |
|
||||
Pennsylvania Regulated |
0.17 |
|
|
0.16 |
|
|
0.48 |
|
|
0.46 |
|
||||
Corporate and Other |
(0.04) |
|
|
(0.03) |
|
|
(0.10) |
|
|
(0.13) |
|
||||
Total |
$ |
0.58 |
|
|
$ |
0.61 |
|
|
$ |
1.81 |
|
|
$ |
1.88 |
|
Key Factors Impacting Earnings
In addition to the segment drivers outlined below, PPL's reported earnings for the third quarter of 2020 included net special-item after-tax charges of
PPL's reported earnings for the first nine months of 2020 included net special-item after-tax charges of
PPL's
Reported earnings in the third quarter of 2020 decreased by
Reported earnings for the first nine months of 2020 decreased by
Kentucky Regulated Segment
PPL's Kentucky Regulated segment primarily consists of the regulated electricity and natural gas operations of
Reported earnings and earnings from ongoing operations in the third quarter of 2020 decreased by
Reported earnings and earnings from ongoing operations for the first nine months of 2020 decreased by
Pennsylvania Regulated Segment
PPL's Pennsylvania Regulated segment consists of the regulated electricity delivery operations of
Reported earnings and earnings from ongoing operations in the third quarter of 2020 increased by
Reported earnings and earnings from ongoing operations for the first nine months of 2020 increased by
Corporate and Other
PPL's Corporate and Other category primarily includes unallocated corporate-level financing and other costs.
Reported earnings and earnings from ongoing operations in the third quarter of 2020 decreased by
Reported earnings for the first nine months of 2020 increased by
2020 Earnings Forecast
PPL narrowed its 2020 earnings from ongoing operations forecast range to
Earnings from ongoing operations is a non-GAAP measure that could differ from reported earnings due to special items that are, in management's view, non-recurring or otherwise not reflective of the company's ongoing operations. PPL management is not able to forecast whether any of these factors will occur or whether any amounts will be reported for future periods. Therefore, PPL is not able to provide an equivalent GAAP measure for earnings guidance.
See the table at the end of this news release for a complete reconciliation of the earnings forecast.
Headquartered in
(Note: All references to earnings per share in the text and tables of this news release are stated in terms of diluted earnings per share unless otherwise noted.)
Conference Call and Webcast
PPL invites interested parties to listen to a live Internet webcast of management's teleconference with financial analysts about third-quarter 2020 financial results at
Management utilizes "Earnings from Ongoing Operations" as a non-GAAP financial measure that should not be considered as an alternative to reported earnings, or net income, an indicator of operating performance determined in accordance with GAAP. PPL believes that Earnings from Ongoing Operations is useful and meaningful to investors because it provides management's view of PPL's earnings performance as another criterion in making investment decisions. In addition, PPL's management uses Earnings from Ongoing Operations in measuring achievement of certain corporate performance goals, including targets for certain executive incentive compensation. Other companies may use different measures to present financial performance.
Earnings from Ongoing Operations is adjusted for the impact of special items. Special items are presented in the financial tables on an after-tax basis with the related income taxes on special items separately disclosed. Income taxes on special items, when applicable, are calculated based on the statutory tax rate of the entity where the activity is recorded. Special items may include items such as:
- Unrealized gains or losses on foreign currency economic hedges (as discussed below).
- Gains and losses on sales of assets not in the ordinary course of business.
- Impairment charges.
- Significant workforce reduction and other restructuring effects.
- Acquisition and divestiture-related adjustments.
- Other charges or credits that are, in management's view, non-recurring or otherwise not reflective of the company's ongoing operations.
Unrealized gains or losses on foreign currency economic hedges include the changes in fair value of foreign currency contracts used to hedge British-pound-sterling-denominated anticipated earnings. The changes in fair value of these contracts are recognized immediately within GAAP earnings. Management believes that excluding these amounts from Earnings from Ongoing Operations until settlement of the contracts provides a better matching of the financial impacts of those contracts with the economic value of PPL's underlying hedged earnings.
Statements contained in this news release, including statements with respect to future earnings, cash flows, dividends, financing, regulation and corporate strategy, including the process to sell
Note to Editors: Visit our media website at www.pplnewsroom.com for additional news and background about
PPL CORPORATION AND SUBSIDIARIES |
|||||||
CONDENSED CONSOLIDATED FINANCIAL INFORMATION (1) |
|||||||
Condensed Consolidated Balance Sheets (Unaudited) |
|||||||
(Millions of Dollars) |
|||||||
|
|
|
|
||||
|
|
|
|
||||
|
2020 |
|
2019 |
||||
Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
746 |
|
|
$ |
815 |
|
Accounts receivable |
830 |
|
|
792 |
|
||
Unbilled revenues |
382 |
|
|
504 |
|
||
Fuel, materials and supplies |
351 |
|
|
332 |
|
||
Current price risk management assets |
136 |
|
|
147 |
|
||
Other current assets |
250 |
|
|
177 |
|
||
Property, Plant and Equipment |
|
|
|
||||
Regulated utility plant |
45,058 |
|
|
42,709 |
|
||
Less: Accumulated depreciation - regulated utility plant |
8,726 |
|
|
8,055 |
|
||
Regulated utility plant, net |
36,332 |
|
|
34,654 |
|
||
Non-regulated property, plant and equipment |
490 |
|
|
357 |
|
||
Less: Accumulated depreciation - non-regulated property, plant and equipment |
98 |
|
|
109 |
|
||
Non-regulated property, plant and equipment, net |
392 |
|
|
248 |
|
||
Construction work in progress |
1,596 |
|
|
1,580 |
|
||
Property, Plant and Equipment, net |
38,320 |
|
|
36,482 |
|
||
Noncurrent regulatory assets |
1,450 |
|
|
1,492 |
|
||
|
4,046 |
|
|
3,940 |
|
||
Pension benefit asset |
972 |
|
|
464 |
|
||
Noncurrent price risk management assets |
53 |
|
|
149 |
|
||
Other noncurrent assets |
388 |
|
|
386 |
|
||
Total Assets |
$ |
47,924 |
|
|
$ |
45,680 |
|
|
|
|
|
||||
Liabilities and Equity |
|
|
|
||||
Short-term debt |
$ |
1,368 |
|
|
$ |
1,151 |
|
Long-term debt due within one year |
1,525 |
|
|
1,172 |
|
||
Accounts payable |
864 |
|
|
956 |
|
||
Other current liabilities |
1,685 |
|
|
1,621 |
|
||
Long-term debt |
21,243 |
|
|
20,721 |
|
||
Deferred income taxes and investment tax credits |
3,691 |
|
|
3,212 |
|
||
Accrued pension obligations |
485 |
|
|
587 |
|
||
Asset retirement obligations |
223 |
|
|
212 |
|
||
Noncurrent regulatory liabilities |
2,543 |
|
|
2,572 |
|
||
Other deferred credits and noncurrent liabilities |
611 |
|
|
485 |
|
||
Common stock and additional paid-in capital |
12,268 |
|
|
12,222 |
|
||
Earnings reinvested |
5,345 |
|
|
5,127 |
|
||
Accumulated other comprehensive loss |
(3,927) |
|
|
(4,358) |
|
||
Total Liabilities and Equity |
$ |
47,924 |
|
|
$ |
45,680 |
|
(1) |
The Financial Statements in this news release have been condensed and summarized for purposes of this presentation. Please refer to |
PPL CORPORATION AND SUBSIDIARIES |
|||||||||||||||
Condensed Consolidated Statements of Income (Unaudited) |
|||||||||||||||
(Millions of Dollars, except share data) |
|||||||||||||||
|
|
|
|
||||||||||||
|
Three Months Ended |
|
Nine Months Ended September |
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Operating Revenues |
$ |
1,885 |
|
|
$ |
1,933 |
|
|
$ |
5,678 |
|
|
$ |
5,815 |
|
|
|
|
|
|
|
|
|
||||||||
Operating Expenses |
|
|
|
|
|
|
|
||||||||
Operation |
|
|
|
|
|
|
|
||||||||
Fuel |
177 |
|
|
194 |
|
|
478 |
|
|
556 |
|
||||
Energy purchases |
136 |
|
|
150 |
|
|
470 |
|
|
538 |
|
||||
Other operation and maintenance |
483 |
|
|
480 |
|
|
1,446 |
|
|
1,452 |
|
||||
Depreciation |
323 |
|
|
306 |
|
|
959 |
|
|
890 |
|
||||
Taxes, other than income |
79 |
|
|
77 |
|
|
226 |
|
|
232 |
|
||||
Total Operating Expenses |
1,198 |
|
|
1,207 |
|
|
3,579 |
|
|
3,668 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating Income |
687 |
|
|
726 |
|
|
2,099 |
|
|
2,147 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Other Income (Expense) - net |
52 |
|
|
126 |
|
|
253 |
|
|
309 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Interest Expense |
249 |
|
|
259 |
|
|
750 |
|
|
746 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Income Before Income Taxes |
490 |
|
|
593 |
|
|
1,602 |
|
|
1,710 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Income Taxes |
209 |
|
|
118 |
|
|
423 |
|
|
328 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Net Income |
$ |
281 |
|
|
$ |
475 |
|
|
$ |
1,179 |
|
|
$ |
1,382 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings Per Share of Common Stock: |
|
|
|
|
|
|
|
||||||||
Net Income Available to PPL Common Shareowners: |
|
|
|
|
|
||||||||||
Basic |
$ |
0.37 |
|
|
$ |
0.66 |
|
|
$ |
1.53 |
|
|
$ |
1.91 |
|
Diluted |
$ |
0.37 |
|
|
$ |
0.65 |
|
|
$ |
1.53 |
|
|
$ |
1.89 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-Average Shares of Common Stock Outstanding (in |
|
|
|
|
|
|
|
||||||||
Basic |
768,786 |
|
|
722,259 |
|
|
768,502 |
|
|
721,693 |
|
||||
Diluted |
769,660 |
|
|
731,151 |
|
|
769,270 |
|
|
730,677 |
|
PPL CORPORATION AND SUBSIDIARIES |
|||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) |
|||||||
(Millions of Dollars) |
|||||||
|
|||||||
|
Nine Months Ended September |
||||||
|
2020 |
|
2019 |
||||
Cash Flows from Operating Activities |
|
|
|
||||
Net income |
$ |
1,179 |
|
|
$ |
1,382 |
|
Adjustments to reconcile net income to net cash provided by operating activities |
|
|
|
||||
Depreciation |
959 |
|
|
890 |
|
||
Amortization |
47 |
|
|
60 |
|
||
Defined benefit plans - (income) expense |
(155) |
|
|
(198) |
|
||
Deferred income taxes and investment tax credits |
355 |
|
|
257 |
|
||
Unrealized (gains) losses on derivatives, and other hedging activities |
98 |
|
|
(18) |
|
||
Other |
11 |
|
|
9 |
|
||
Change in current assets and current liabilities |
|
|
|
||||
Accounts receivable |
(40) |
|
|
57 |
|
||
Accounts payable |
(35) |
|
|
(116) |
|
||
Prepayments |
(53) |
|
|
(53) |
|
||
Accrued interest |
86 |
|
|
74 |
|
||
Unbilled revenues |
126 |
|
|
58 |
|
||
Regulatory assets and liabilities, net |
(44) |
|
|
(62) |
|
||
Other |
(17) |
|
|
(91) |
|
||
Other operating activities |
|
|
|
||||
Defined benefit plans - funding |
(264) |
|
|
(281) |
|
||
Other |
(6) |
|
|
(80) |
|
||
Net cash provided by operating activities |
2,247 |
|
|
1,888 |
|
||
Cash Flows from Investing Activities |
|
|
|
||||
Expenditures for property, plant and equipment |
(2,348) |
|
|
(2,197) |
|
||
Purchase of investments |
— |
|
|
(55) |
|
||
Proceeds from the sale of investments |
2 |
|
|
63 |
|
||
Other investing activities |
(12) |
|
|
(5) |
|
||
Net cash used in investing activities |
(2,358) |
|
|
(2,194) |
|
||
Cash Flows from Financing Activities |
|
|
|
||||
Issuance of long-term debt |
1,598 |
|
|
1,465 |
|
||
Retirement of long-term debt |
(975) |
|
|
(200) |
|
||
Proceeds from project financing |
152 |
|
|
— |
|
||
Issuance of common stock |
32 |
|
|
49 |
|
||
Payment of common stock dividends |
(956) |
|
|
(893) |
|
||
Issuance of term loan |
300 |
|
|
— |
|
||
Net increase (decrease) in short-term debt |
(94) |
|
|
(34) |
|
||
Other financing activities |
(24) |
|
|
(24) |
|
||
Net cash provided by financing activities |
33 |
|
|
363 |
|
||
Effect of Exchange Rates on Cash, Cash Equivalents and Restricted Cash |
11 |
|
|
(10) |
|
||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash |
(67) |
|
|
47 |
|
||
Cash, Cash Equivalents and Restricted Cash at Beginning of Period |
836 |
|
|
643 |
|
||
Cash, Cash Equivalents and Restricted Cash at End of Period |
$ |
769 |
|
|
$ |
690 |
|
|
|
|
|
||||
Supplemental Disclosures of Cash Flow Information |
|
|
|
||||
Significant non-cash transactions: |
|
|
|
||||
Accrued expenditures for property, plant and equipment at |
$ |
279 |
|
|
$ |
363 |
|
Accrued expenditures for intangible assets at |
$ |
86 |
|
|
$ |
67 |
|
Key Indicators (Unaudited) |
||||||||
|
|
|
|
|
||||
|
Twelve Months Ended |
|||||||
|
|
|||||||
Financial |
2020 |
|
|
2019 |
||||
|
|
|
|
|
||||
Dividends declared per share of common stock |
$ |
1.6575 |
|
|
|
$ |
1.6475 |
|
Book value per share (1)(2) |
$ |
17.80 |
|
|
|
$ |
16.48 |
|
Market price per share (1) |
$ |
27.21 |
|
|
|
$ |
31.49 |
|
Dividend yield |
6.1 |
% |
|
|
5.2 |
% |
||
Dividend payout ratio (3) |
82.5 |
% |
|
|
67.0 |
% |
||
Dividend payout ratio - earnings from ongoing operations (3)(4) |
69.6 |
% |
|
|
68.6 |
% |
||
Return on common equity |
12.1 |
% |
|
|
15.1 |
% |
||
Return on common equity - earnings from ongoing operations (4) |
14.2 |
% |
|
|
14.7 |
% |
||
Spot rate of |
$ |
1.34 |
|
|
|
$ |
1.29 |
|
Average rate of |
$ |
1.48 |
|
|
|
$ |
1.33 |
|
(1) |
End of period. |
(2) |
Based on 768,797 and 722,307 shares of common stock outstanding (in thousands) at |
(3) |
Based on diluted earnings per share. |
(4) |
Calculated using earnings from ongoing operations, which is a non-GAAP financial measure that includes adjustments described in the text and tables of this news release. |
(5) |
As of |
(6) |
Represents a year-to-date average and includes the impact of foreign exchange hedges. |
Operating - Domestic & International Electricity Sales (Unaudited) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended |
|
|
|
Nine Months Ended |
|
|
||||||||||
|
|
|
|
|
Percent |
|
|
|
|
|
Percent |
||||||
(GWh) |
2020 |
|
2019 |
|
Change |
|
2020 |
|
2019 |
|
Change |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
PA Regulated Segment |
|
|
|
|
|
|
|
|
|
|
|
||||||
Retail Delivered |
9,603 |
|
|
9,535 |
|
|
0.7 |
% |
|
27,138 |
|
|
27,930 |
|
|
(2.8) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
KY Regulated Segment |
|
|
|
|
|
|
|
|
|
|
|
||||||
Retail Delivered |
7,960 |
|
|
8,587 |
|
|
(7.3) |
% |
|
21,592 |
|
|
23,186 |
|
|
(6.9) |
% |
Wholesale (1) |
162 |
|
|
198 |
|
|
(18.2) |
% |
|
392 |
|
|
983 |
|
|
(60.1) |
% |
Total |
8,122 |
|
|
8,785 |
|
|
(7.5) |
% |
|
21,984 |
|
|
24,169 |
|
|
(9.0) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total |
17,725 |
|
|
18,319 |
|
|
(3.2) |
% |
|
49,122 |
|
|
52,099 |
|
|
(5.7) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Delivered |
14,906 |
|
|
16,142 |
|
|
(7.7) |
% |
|
50,578 |
|
|
53,965 |
|
|
(6.3) |
% |
(1) |
Represents |
Reconciliation of Segment Reported Earnings to Earnings from Ongoing Operations |
|||||||||||||||||||
(After-Tax) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
|
|
||||||||||||||||||
3rd Quarter 2020 |
(millions of dollars) |
||||||||||||||||||
|
U.K. |
|
KY |
|
PA |
|
Corp. |
|
|
||||||||||
|
Reg. |
|
Reg. |
|
Reg. |
|
& Other |
|
Total |
||||||||||
Reported Earnings (1) |
$ |
55 |
|
|
$ |
129 |
|
|
$ |
135 |
|
|
$ |
(38) |
|
|
$ |
281 |
|
Less: Special Items (expense) benefit: |
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency economic hedges, net of tax of |
(53) |
|
|
— |
|
|
— |
|
|
— |
|
|
(53) |
|
|||||
Talen litigation costs, net of tax of |
— |
|
|
— |
|
|
— |
|
|
(2) |
|
|
(2) |
|
|||||
COVID-19 impact, net of tax of |
(3) |
|
|
— |
|
|
(1) |
|
|
(1) |
|
|
(5) |
|
|||||
|
(102) |
|
|
— |
|
|
— |
|
|
— |
|
|
(102) |
|
|||||
Strategic corporate initiatives, net of tax of |
— |
|
|
— |
|
|
— |
|
|
(7) |
|
|
(7) |
|
|||||
Total Special Items |
(158) |
|
|
— |
|
|
(1) |
|
|
(10) |
|
|
(169) |
|
|||||
Earnings from Ongoing Operations |
$ |
213 |
|
|
$ |
129 |
|
|
$ |
136 |
|
|
$ |
(28) |
|
|
$ |
450 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
(per share - diluted) |
||||||||||||||||||
|
U.K. |
|
KY |
|
PA |
|
Corp. |
|
|
||||||||||
|
Reg. |
|
Reg. |
|
Reg. |
|
& Other |
|
Total |
||||||||||
Reported Earnings (1) |
$ |
0.07 |
|
|
$ |
0.17 |
|
|
$ |
0.17 |
|
|
$ |
(0.04) |
|
|
$ |
0.37 |
|
Less: Special Items (expense) benefit: |
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency economic hedges |
(0.07) |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.07) |
|
|||||
COVID-19 impact (2) |
(0.01) |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.01) |
|
|||||
|
(0.13) |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.13) |
|
|||||
Total Special Items |
(0.21) |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.21) |
|
|||||
Earnings from Ongoing Operations |
$ |
0.28 |
|
|
$ |
0.17 |
|
|
$ |
0.17 |
|
|
$ |
(0.04) |
|
|
$ |
0.58 |
|
(1) |
Reported Earnings represents Net Income. |
(2) |
COVID-19 impact relates to incremental costs for labor not chargeable to capital projects due to |
Reconciliation of Segment Reported Earnings to Earnings from Ongoing Operations |
|||||||||||||||||||
(After-Tax) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Year-to-Date |
(millions of dollars) |
||||||||||||||||||
|
U.K. |
|
KY |
|
PA |
|
Corp. |
|
|
||||||||||
|
Reg. |
|
Reg. |
|
Reg. |
|
& Other |
|
Total |
||||||||||
Reported Earnings (1) |
$ |
574 |
|
|
$ |
330 |
|
|
$ |
371 |
|
|
$ |
(96) |
|
|
$ |
1,179 |
|
Less: Special Items (expense) benefit: |
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency economic hedges, net of tax of |
(76) |
|
|
— |
|
|
— |
|
|
— |
|
|
(76) |
|
|||||
Talen litigation costs, net of tax of |
— |
|
|
— |
|
|
— |
|
|
(6) |
|
|
(6) |
|
|||||
COVID-19 impact, net of tax of |
(15) |
|
|
(4) |
|
|
(1) |
|
|
(1) |
|
|
(21) |
|
|||||
|
(102) |
|
|
— |
|
|
— |
|
|
— |
|
|
(102) |
|
|||||
Strategic corporate initiatives, net of tax of |
— |
|
|
— |
|
|
— |
|
|
(7) |
|
|
(7) |
|
|||||
Total Special Items |
(193) |
|
|
(4) |
|
|
(1) |
|
|
(14) |
|
|
(212) |
|
|||||
Earning from Ongoing Operations |
$ |
767 |
|
|
$ |
334 |
|
|
$ |
372 |
|
|
$ |
(82) |
|
|
$ |
1,391 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
(per share - diluted) |
||||||||||||||||||
|
U.K. |
|
KY |
|
PA |
|
Corp. |
|
|
||||||||||
|
Reg. |
|
Reg. |
|
Reg. |
|
& Other |
|
Total |
||||||||||
Reported Earnings (1) |
$ |
0.74 |
|
|
$ |
0.43 |
|
|
$ |
0.48 |
|
|
$ |
(0.12) |
|
|
$ |
1.53 |
|
Less: Special Items (expense) benefit: |
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency economic hedges |
(0.10) |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.10) |
|
|||||
Talen litigation costs |
— |
|
|
— |
|
|
— |
|
|
(0.01) |
|
|
(0.01) |
|
|||||
COVID-19 impact (2) |
(0.02) |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.02) |
|
|||||
|
(0.14) |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.14) |
|
|||||
Strategic corporate initiatives |
— |
|
|
— |
|
|
— |
|
|
(0.01) |
|
|
(0.01) |
|
|||||
Total Special Items |
(0.26) |
|
|
— |
|
|
— |
|
|
(0.02) |
|
|
(0.28) |
|
|||||
Earnings from Ongoing Operations |
$ |
1.00 |
|
|
$ |
0.43 |
|
|
$ |
0.48 |
|
|
$ |
(0.10) |
|
|
$ |
1.81 |
|
(1) |
Reported Earnings represents Net Income. |
(2) |
COVID-19 impact relates to incremental costs for labor not chargeable to capital projects due to |
Reconciliation of Segment Reported Earnings to Earnings from Ongoing Operations |
|||||||||||||||||||
(After-Tax) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
3rd Quarter 2019 |
(millions of dollars) |
||||||||||||||||||
|
U.K. |
|
KY |
|
PA |
|
Corp. |
|
|
||||||||||
|
Reg. |
|
Reg. |
|
Reg. |
|
& Other |
|
Total |
||||||||||
Reported Earnings (1) |
$ |
236 |
|
|
$ |
150 |
|
|
$ |
118 |
|
|
$ |
(29) |
|
|
$ |
475 |
|
Less: Special Items (expense) benefit: |
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency economic hedges, net of tax of ( |
31 |
|
|
— |
|
|
— |
|
|
— |
|
|
31 |
|
|||||
Talen litigation costs, net of tax of |
— |
|
|
— |
|
|
— |
|
|
(1) |
|
|
(1) |
|
|||||
Total Special Items |
31 |
|
|
— |
|
|
— |
|
|
(1) |
|
|
30 |
|
|||||
Earnings from Ongoing Operations |
$ |
205 |
|
|
$ |
150 |
|
|
$ |
118 |
|
|
$ |
(28) |
|
|
$ |
445 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
(per share - diluted) |
||||||||||||||||||
|
U.K. |
|
KY |
|
PA |
|
Corp. |
|
|
||||||||||
|
Reg. |
|
Reg. |
|
Reg. |
|
& Other |
|
Total |
||||||||||
Reported Earnings (1) |
$ |
0.32 |
|
|
$ |
0.20 |
|
|
$ |
0.16 |
|
|
$ |
(0.03) |
|
|
$ |
0.65 |
|
Less: Special Items (expense) benefit: |
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency economic hedges |
0.04 |
|
|
— |
|
|
— |
|
|
— |
|
|
0.04 |
|
|||||
Total Special Items |
0.04 |
|
|
— |
|
|
— |
|
|
— |
|
|
0.04 |
|
|||||
Earnings from Ongoing Operations |
$ |
0.28 |
|
|
$ |
0.20 |
|
|
$ |
0.16 |
|
|
$ |
(0.03) |
|
|
$ |
0.61 |
|
(1) |
Reported Earnings represents Net Income. |
Reconciliation of Segment Reported Earnings to Earnings from Ongoing Operations |
|||||||||||||||||||
(After-Tax) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Year-to-Date |
(millions of dollars) |
||||||||||||||||||
|
U.K. |
|
KY |
|
PA |
|
Corp. |
|
|
||||||||||
|
Reg. |
|
Reg. |
|
Reg. |
|
& Other |
|
Total |
||||||||||
Reported Earnings (1) |
$ |
784 |
|
|
$ |
364 |
|
|
$ |
333 |
|
|
$ |
(99) |
|
|
$ |
1,382 |
|
Less: Special Items (expense) benefit: |
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency economic hedges, net of tax of ( |
15 |
|
|
— |
|
|
— |
|
|
— |
|
|
15 |
|
|||||
Talen litigation costs, net of tax of |
— |
|
|
— |
|
|
— |
|
|
(4) |
|
|
(4) |
|
|||||
Other, net of tax of |
(4) |
|
|
— |
|
|
— |
|
|
— |
|
|
(4) |
|
|||||
Total Special Items |
11 |
|
|
— |
|
|
— |
|
|
(4) |
|
|
7 |
|
|||||
Earnings from Ongoing Operations |
$ |
773 |
|
|
$ |
364 |
|
|
$ |
333 |
|
|
$ |
(95) |
|
|
$ |
1,375 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
(per share - diluted) |
||||||||||||||||||
|
U.K. |
|
KY |
|
PA |
|
Corp. |
|
|
||||||||||
|
Reg. |
|
Reg. |
|
Reg. |
|
& Other |
|
Total |
||||||||||
Reported Earnings (1) |
$ |
1.07 |
|
|
$ |
0.50 |
|
|
$ |
0.46 |
|
|
$ |
(0.14) |
|
|
$ |
1.89 |
|
Less: Special Items (expense) benefit: |
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency economic hedges |
0.03 |
|
|
— |
|
|
— |
|
|
— |
|
|
0.03 |
|
|||||
Talen litigation costs |
— |
|
|
— |
|
|
— |
|
|
(0.01) |
|
|
(0.01) |
|
|||||
Other |
(0.01) |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.01) |
|
|||||
Total Special Items |
0.02 |
|
|
— |
|
|
— |
|
|
(0.01) |
|
|
0.01 |
|
|||||
Earnings from Ongoing Operations |
$ |
1.05 |
|
|
$ |
0.50 |
|
|
$ |
0.46 |
|
|
$ |
(0.13) |
|
|
$ |
1.88 |
|
(1) |
Reported Earnings represents Net Income. |
Reconciliation of PPL's Earnings Forecast |
|
||||||||||
After-tax (Unaudited) |
|
|
|
|
|
||||||
(per share - diluted) |
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
|
2020 |
||||||||||
|
Midpoint |
|
|
||||||||
|
Midpoint |
|
High |
|
Low |
||||||
|
Total |
|
2020 |
|
2020 |
||||||
Estimate of Reported Earnings |
$ |
2.17 |
|
|
$ |
2.22 |
|
|
$ |
2.12 |
|
Less: Special Items (expense) benefit: (1) |
|
|
|
|
|
||||||
Foreign currency economic hedges |
(0.10) |
|
|
(0.10) |
|
|
(0.10) |
|
|||
Talen litigation costs |
(0.01) |
|
|
(0.01) |
|
|
(0.01) |
|
|||
COVID-19 impact (2) |
(0.02) |
|
|
(0.02) |
|
|
(0.02) |
|
|||
|
(0.14) |
|
|
(0.14) |
|
|
(0.14) |
|
|||
Strategic corporate initiatives |
(0.01) |
|
|
(0.01) |
|
|
(0.01) |
|
|||
Total Special Items |
(0.28) |
|
|
(0.28) |
|
|
(0.28) |
|
|||
Forecast of Earnings from Ongoing Operations |
$ |
2.45 |
|
|
$ |
2.50 |
|
|
$ |
2.40 |
|
(1) |
Reflects only special items recorded through |
(2) |
COVID-19 impact relates to incremental costs for labor not chargeable to capital projects due to |
Contacts: |
For news media: |
|
For financial analysts: |
View original content:http://www.prnewswire.com/news-releases/ppl-corporation-reports-third-quarter-2020-earnings-301167098.html
SOURCE