Avista Q2 2020 Earnings Report
Key Takeaways
Avista Corp. reported net income attributable to Avista Corp. shareholders of $17.5 million, or $0.26 per diluted share for the second quarter of 2020, compared to $25.3 million, or $0.38 per diluted share for the second quarter of 2019. The company is confirming its consolidated earnings guidance for the year in a range of $1.75 to $1.95 per diluted share.
Second quarter consolidated earnings were in line with expectations.
Avista Utilities experienced lower utility margin from a reduction in customer loads, mostly offset by lower than expected operating costs.
AEL&P’s earnings were on track for the second quarter and the company expects them to meet the full year expectations.
Other businesses experienced a net loss during the second quarter due to net losses on equity investments.
Avista
Avista
Avista Revenue by Segment
Forward Guidance
Avista Corp. is confirming its 2020 earnings guidance to a consolidated range of $1.75 to $1.95 per diluted share.
Positive Outlook
- Expected tax benefits from the Coronavirus Aid, Relief, and Economic Security Act.
- Efforts to identify cost reduction opportunities.
- Filed for deferred accounting treatment of net COVID-19 expenses in each of our jurisdictions.
- The Idaho Commission issued an order that allows us to defer certain costs related to COVID-19, net of any decreased costs and other benefits related to COVID-19.
- Current expectation for the ERM is a benefit position within the 90 percent customer/10 percent Company sharing band, which is expected to add $0.06 per diluted share.
Challenges Ahead
- COVID-19 impacts at Avista Utilities of increased operating expenses, including bad debt.
- Reduced industrial loads due to COVID-19.
- Increased interest expense.
- Continue to expect to experience regulatory lag until 2023.
- Cannot predict the duration and severity of the COVID-19 global pandemic.
Revenue & Expenses
Visualization of income flow from segment revenue to net income