PR Newswire
ALLENTOWN, Pa., Nov. 1, 2016
ALLENTOWN, Pa., Nov. 1, 2016 /PRNewswire/ -- PPL Corporation (NYSE: PPL) on Tuesday (11/1) announced third-quarter 2016 reported earnings (GAAP) of $473 million, or $0.69 per share, an increase from third-quarter 2015 reported earnings of $393 million, or $0.58 per share.
Reported earnings for the first nine months of 2016 were $1.4 billion, or $2.11 per share, an increase from $283 million, or $0.42 per share, for the first nine months of 2015. The company's results for the first nine months of 2015 reflected a loss from discontinued operations of $915 million, or $1.36 per share, resulting primarily from the June 1 spinoff of its competitive generation business.
Adjusting for special items, third-quarter 2016 earnings from ongoing operations (non-GAAP) were $427 million, or $0.63 per share, an increase of about 23 percent compared with $347 million, or $0.51 per share, a year ago. Earnings from ongoing operations for the first nine months of 2016 were $1.3 billion, or $1.86 per share, compared with $1.2 billion, or $1.77 per share, for the first nine months of 2015.
"Based on PPL's continued strong performance year-to-date and better than expected third-quarter results across our business units, we are raising the midpoint of our 2016 ongoing earnings forecast," said William H. Spence, PPL's chairman, president and Chief Executive Officer.
"Moreover, as we look to the future, we remain confident in our ability to deliver competitive compound annual earnings growth of 5 to 6 percent from 2017 to 2020 and targeted dividend growth of about 4 percent annually over the same period," Spence said. "The investments we are making to advance a smarter, cleaner and more reliable energy infrastructure will drive this growth. And actions we've taken to significantly reduce foreign currency risks bolster our projections."
With the effect of special items recorded through the third quarter, the company's forecast range for 2016 reported earnings is $2.55 to $2.70 per share.
PPL's new forecast range for 2016 earnings from ongoing operations is $2.30 to $2.45 per share, with a midpoint of $2.38 per share. That's an increase from the previous forecast of $2.25 to $2.45 per share, with a midpoint of $2.35 per share.
The increased forecast reflects actions PPL took in October to capture gains from remaining 2016 earnings hedges against a weakening British pound and to use that value to add 2018 earnings hedges at rates above the company's business plan assumptions of $1.30 per pound. These previously announced moves will have no significant impact on 2016 reported earnings and will result in lower full-year 2016 earnings from ongoing operations of approximately $0.06 per share. This $0.06 is reflected in PPL's increased guidance for 2016.
Since its previous announcement on Oct. 12, the company has taken further actions to reduce foreign currency risk, capturing about $0.06 of gains from a portion of its 2017 earnings hedges, adding more hedges at rates above the company's business plan for 2018 and enhancing PPL's flexibility to protect against potential declines in the value of the British pound through 2019 and potentially 2020.
Looking beyond 2016, PPL reaffirmed its 2017 earnings guidance of $2.05 to $2.25 per share, with a midpoint of $2.15 per share.
In addition, PPL said its growth plans include investing more than $15 billion in infrastructure improvements from 2016 through 2020, with near real-time recovery available for more than three-quarters of that investment.
"As we pursue our long-range growth plans, our utilities continue to be among the very best in the regions they serve, strengthening reliability and distinguishing themselves through award-winning customer service," Spence said. "Our focus is maintaining this strong operational performance as we continue to invest responsibly in the future for our shareowners and our customers."
Third-Quarter and Year-to-Date Earnings Details
PPL's reported earnings for the third quarter of 2016 included net special-item after-tax benefits of $46 million, or $0.06 per share, primarily from a further reduction in the U.K. corporate income tax rate to become effective April 1, 2020. Reported earnings for the third quarter of 2015 included net special-item after-tax benefits of $46 million, or $0.07 per share, primarily from foreign currency-related economic hedges.
PPL's reported earnings for the first nine months of 2016 included net special-item after-tax benefits of $172 million, or $0.25 per share, primarily due to foreign currency-related economic hedges. Reported earnings for the first nine months of 2015 included net special-item after-tax charges of $912 million, or $1.35 per share, primarily due to the June 1, 2015 spinoff of the company's former Supply segment.
As discussed in this news release, reported earnings are calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP). "Earnings from ongoing operations" is a non-GAAP financial measure that is adjusted for special items, including for 2015 the former Supply segment's earnings and the loss associated with the Supply segment spinoff. See the tables at the end of this news release for a reconciliation of reported earnings (loss) to earnings from ongoing operations, including an itemization of special items.
(Dollars in millions, except for | 3rd Quarter | | Year to Date | ||||||||||||||||||
| 2016 | | 2015 | | % Change | | 2016 | | 2015 | | % Change | ||||||||||
Reported earnings | $ | 473 | | | $ | 393 | | | 20 | % | | $ | 1,437 | | | $ | 283 | | | 408 | % |
Reported earnings per share | $ | 0.69 | | | $ | 0.58 | | | 19 | % | | $ | 2.11 | | | $ | 0.42 | | | 402 | % |
| | | | | | | | | | | | ||||||||||
| 3rd Quarter | | Year to Date | ||||||||||||||||||
| 2016 | | 2015 | | % Change | | 2016 | | 2015 | | % Change | ||||||||||
Earnings from ongoing operations | $ | 427 | | | $ | 347 | | | 23 | % | | $ | 1,265 | | | $ | 1,195 | | | 6 | % |
Earnings from ongoing operations per | $ | 0.63 | | | $ | 0.51 | | | 24 | % | | $ | 1.86 | | | $ | 1.77 | | | 5 | % |
Third-Quarter and Year-to-Date Earnings by Segment
| 3rd Quarter | | Year to Date | ||||||||||||
Per share | 2016 | | 2015 | | 2016 | | 2015 | ||||||||
Reported earnings | | | | | | | | ||||||||
U.K. Regulated | $ | 0.41 Werbung Mehr Nachrichten zur PPL Aktie kostenlos abonnieren
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