Avista Corp. Sets 2024 Guidance

By Tamara Parker • Wednesday, February 21 11:44 • Permanent Link

Avista Corp. (NYSE: AVA) has reported its 2023 financial results and has initiated its 2024 earnings guidance, with consolidated earnings per diluted share of $2.24 for 2023. The company has announced a significant improvement in Avista Utilities earnings, reflecting the benefits of cost recovery and cost management. Avista's 2024 consolidated earnings guidance has been initiated at $2.36 to $2.56 per diluted share.

Dennis Vermillion, CEO of Avista, expressed pride in the company's progress, stating, "We made significant progress improving our earned return at Avista Utilities in 2023. I am proud of the way we worked together to deliver these results, despite the headwinds of increased interest rates and the impact of higher power supply costs. The team's ability to find solutions to manage our costs and work toward constructive regulatory outcomes shows in Avista Utilities’ earnings."

An analysis of the 2023 consolidated earnings revealed the various factors that contributed to the change in net income and diluted earnings per share. The company's effective tax rate for 2023 was reported at negative 24.4 percent, compared to negative 12.5 percent in the prior year. The decrease in the effective tax rate is attributed to additional tax customer credits being provided to customers.

In terms of liquidity and capital resources, Avista issued $250.0 million of long-term debt and $112.3 million of common stock in 2023. Additionally, the company had $146.3 million of available liquidity under the Avista Corp. committed line of credit and $30.0 million of available liquidity under its letter of credit facility as of December 31, 2023. Avista Utilities' capital expenditures for 2023 were reported at $484.7 million.

Looking ahead to 2024, Avista Corp. is initiating its 2024 earnings guidance with a consolidated range of $2.36 to $2.56 per diluted share. The company expects Avista Utilities to contribute within a range of $2.23 to $2.39 per diluted share in 2024, and AEL&P to contribute in the range of $0.09 to $0.11 per diluted share. Avista also anticipates long-term earnings growth of 4 to 6 percent off of a 2025 base year, assuming a constructive outcome in its 2024 Washington general rate cases.

The company's shares have moved 1.5%, and are now trading at a price of $34.46.

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

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