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Mar 31, 2021
Avista Q1 2021 Earnings Report
Reported net income and confirmed earnings guidance.
Key Takeaways
Avista Corp. reported a strong start to 2021 with net income of $68.0 million, or $0.98 per diluted share, for the first quarter, exceeding expectations due to higher utility margin from lower net power supply costs and gains on investments. The company confirmed its 2021 earnings guidance with a consolidated range of $1.96 to $2.16 per diluted share.
Net income for Q1 2021 was $68.0 million, or $0.98 per diluted share, compared to $48.4 million, or $0.72 per diluted share, for Q1 2020.
Avista Utilities' earnings were better than expected, driven by higher utility margin mainly from lower net power supply costs.
AEL&P's earnings met expectations for the first quarter.
The company is carbon neutral by 2045, with a near-term goal of 30 percent reduction in greenhouse gas emissions by 2030.
Forward Guidance
Avista Corp. confirmed its 2021, 2022, and 2023 earnings guidance with consolidated ranges of $1.96 to $2.16 per diluted share in 2021, $2.18 to $2.38 per diluted share in 2022, and $2.42 to $2.62 per diluted share in 2023.
Positive Outlook
- Timely and appropriate rate relief in our jurisdictions.
- Avista Utilities to contribute in the range of $1.93 to $2.07 per diluted share for 2021.
- Current expectation for the ERM is a benefit position within the 75 percent customer/25 percent Company sharing band, which is expected to contribute $0.06 per diluted share.
- For 2021, we expect AEL&P to contribute in the range of $0.08 to $0.11 per diluted share.
- Our guidance does not include the effect of unusual or non-recurring items until the effects are known and certain.
Challenges Ahead
- Unrecovered structural costs estimated to reduce the return on equity by approximately 70 basis points.
- Regulatory timing lag estimated to reduce the return on equity by approximately 100 basis points.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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