Yahoo Finance Portland General Electric Co (POR) (Q1 2024) Earnings Call Transcript Highlights: Strong ...
GAAP Net Income: $109 million for Q1 2024, compared to $74 million for Q1 2023.
Non-GAAP Net Income: $123 million for Q1 2024.
Earnings Per Share (GAAP): $1.8 per diluted share for Q1 2024, up from $0.8 in Q1 2023.
Earnings Per Share (Non-GAAP): $1.21 per diluted share for Q1 2024.
Industrial Load Growth: Increased by 4.9% compared to Q1 last year.
Revenue: Decreased by 3% quarter over quarter, primarily due to weather-driven decreases in deliveries.
Dividend Increase: Announced a 10% annual increase, aligning with the targeted growth range.
2024 Adjusted EPS Guidance: Reaffirmed at $2.98 to $3.18 per share.
Long-term Earnings and Dividend Growth Guidance: 5% to 7%.
Total Available Liquidity: $1.1 billion as of March 31st.
Release Date: April 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you provide updates on the RFP process and potential equity needs related to it? A: Maria Pope, Independent Director, mentioned that the RFP process should yield a robust pipeline of renewable and capacity projects with a shortlist expected by late Q2 or early Q3, and contracts potentially finalized by year-end or early next year. Joseph Trpik, CFO, added that any equity needs from the RFP would be incremental to their existing plans, emphasizing a balanced capital structure and a pay-go financing approach.
Q: How is the rate case process unfolding, and can you compare the revenue ask in this case to previous ones? A: Joseph Trpik, CFO, explained that the current rate case is primarily focused on capital expenditures, with about 65% of the case pertaining to CapEx. This contrasts with the last case, which was heavily focused on power costs. He highlighted the company's efficiency focus and the importance of recovering costs for newly serviced assets.
Q: Are there any updates on legislative efforts around a state wildfire fund? A: Maria Pope discussed ongoing efforts at both state and federal levels to address wildfire risks comprehensively, not just from a utility perspective but as a societal issue. She emphasized the importance of collaborative solutions that involve various stakeholders across the state.
Q: Can you clarify the deferrals and costs associated with the January storms and the expected timing for recovery? A: Joseph Trpik detailed that the $75 million deferral is under the PCAM mechanism with recovery discussions set for mid-2025 and potential recovery starting in 2026. The separate $48 million in O&M and capital costs from storm restoration are under a different regulatory mechanism, with proceedings started but no set timeline for recovery yet.
Q: How does the extended day-ahead market proposal with Cal ISO fit into your operational plans? A: Maria Pope explained that joining the day-ahead market would build on the benefits realized from the real-time energy imbalance market, enhancing operational benefits and customer savings by optimizing the diverse renewable resources across the region.
Q: What is the current status of demand from data centers, and is this fully incorporated into your IRPs? A: Maria Pope confirmed that recent IRPs have significantly raised energy demand projections by about 40% based on new data and efficiencies. She anticipates this figure to be a baseline, with potential for further increases, especially given the substantial growth in both the data center and semiconductor sectors within their service territory.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.