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Sep 30, 2021
Avista Q3 2021 Earnings Report
Reported net income for the third quarter of 2021 and confirmed 2021 and 2023 consolidated guidance, while lowering 2022 consolidated guidance.
Key Takeaways
Avista Corp. reported a net income of $14.4 million, or $0.20 per diluted share, for the third quarter of 2021, compared to $4.9 million, or $0.07 per diluted share, for the third quarter of 2020. The company confirmed its consolidated earnings guidance for 2021 and 2023 but lowered the consolidated guidance for 2022.
Net income for Q3 2021 was $14.4 million, or $0.20 per diluted share, up from $4.9 million, or $0.07 per diluted share, in Q3 2020.
Avista Utilities' earnings were above expectations for the third quarter, mainly due to the timing of recognition of income taxes.
AEL&P's earnings are on track to meet the full-year guidance.
Consolidated earnings guidance for 2021 is confirmed at $1.96 to $2.16 per diluted share, and for 2023 at $2.42 to $2.62 per diluted share.
Avista
Avista
Avista Revenue by Segment
Revenue by Segment
Avista Utilities Revenue
CapyFin.comAEL&P Revenue
CapyFin.comOther non-reportable segment Revenue
CapyFin.com Forward Guidance
Avista Corp. confirmed its 2021 consolidated earnings guidance with a range of $1.96 to $2.16 per diluted share. The company lowered its 2022 consolidated earnings guidance by $0.10 per dilutive share to a range of $1.93 to $2.13 per diluted share and confirmed its 2023 consolidated earnings guidance with a range of $2.42 to $2.62 per diluted share.
Positive Outlook
- Timely and appropriate rate relief in our jurisdictions.
- Avista Utilities is expected to contribute in the range of $1.83 to $1.97 per diluted share for 2021.
- Expect to be above the top end of the range of $0.05 to $0.08 per diluted share for the other businesses.
- For 2021, AEL&P is expected to contribute in the range of $0.08 to $0.11 per diluted share.
- Next Washington general rate cases will be a multiyear rate plan as required under a new law, and will seek to include in rates all capital investment and projected increased operating costs in order to earn our allowed return by 2023.
Challenges Ahead
- Impact of the ERM in 2021, we expect to be near the bottom end of the range for Avista Utilities.
- Current expectation for the ERM is a surcharge position within the 90 percent customer/10 percent Company sharing band, which is expected to decrease earnings by $0.09 per diluted share.
- Guidance assumes, among other things, timely and appropriate rate relief in our jurisdictions.
- Our outlook assumes, among other variables, normal precipitation, temperatures, and other operating conditions.
- Guidance does not include the effect of unusual or non-recurring items until the effects are known and certain.
Revenue & Expenses
Visualization of income flow from segment revenue to net income