PPL Corporation Exceeds Earnings Forecast

By Tamara Parker • Friday, February 16 10:09 • Permanent Link

PPL Corporation (NYSE: PPL) has reported its 2023 earnings results, exceeding the midpoint of the forecast and extending its growth targets through 2027. The company announced its 2023 reported earnings (GAAP) of $1.00 per share, which exceeded the 2023 earnings from ongoing operations forecast midpoint, achieving $1.60 per share. In addition, PPL extended its 6% to 8% annual EPS and dividend growth targets through at least 2027, and increased its capital plan to more than $14 billion through 2027, raising the rate base growth to 6.3%.

Vincent Sorgi, President and Chief Executive Officer of PPL Corporation, commented on the company's performance, stating, "Despite mild weather, heightened storm activity and challenging macroeconomic factors, we delivered on all of our commitments to shareowners in 2023, provided exceptional reliability for our 3.5 million customers and took significant steps to advance a safe, reliable, affordable and cleaner energy mix."

Looking ahead, Sorgi added, "We remain laser-focused on creating the utilities of the future to advance the clean energy transition reliably, affordably and sustainably for our customers. And throughout PPL, we’re driven to create long-term value for both our customers and shareowners."

In 2023, PPL exceeded the midpoint of its ongoing earnings forecast, delivered 8% ongoing earnings per share (EPS) growth from pro forma 2022 EPS of $1.48 per share, and offset more than $0.10 per share in mild weather and storm impacts. The company executed $2.4 billion in planned infrastructure investments to improve service to customers, better enable the grid to withstand severe weather, and support increased renewable energy and electrification.

For 2024, PPL announced a 2024 earnings forecast range of $1.63 to $1.75 per share, with a midpoint of $1.69 per share. The company also increased its planned infrastructure investments to $14.3 billion from 2024 to 2027 compared to the prior plan of $11.9 billion from 2023 to 2026. These investments are expected to result in 6.3% average annual rate base growth through 2027, up from 5.6% over the prior plan period.

PPL also expects to maintain a balance sheet that is among the best in the U.S. utility sector, projecting a funds from operations (FFO)/cash flow from operations (CFO) to debt ratio of 16% to 18% throughout the updated business planning period without the need for equity issuances through at least 2027.

The company's full 8-K submission is available here.

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