Loading...
•
Sep 30, 2022
Avista Q3 2022 Earnings Report
Reported a net loss due to higher interest costs and increased operating expenses at Avista Utilities, partially offset by AEL&P meeting expectations.
Key Takeaways
Avista Corp. reported a net loss of $5.8 million for Q3 2022, compared to a net income of $14.4 million in Q3 2021. The decrease was primarily due to higher interest costs and increased operating expenses at Avista Utilities. The company lowered its 2022 and 2023 consolidated earnings guidance.
Q3 2022 net loss was $5.8 million, or a loss of $0.08 per diluted share, compared to net income of $14.4 million, or earnings of $0.20 per diluted share, for Q3 2021.
Avista Utilities' results were below expectations due to higher interest costs and increased operating expenses.
AEL&P continued to meet expectations in 2022 and remains on track to meet full year guidance.
2022 consolidated earnings guidance lowered by $0.05 per diluted share to a range of $1.88 to $2.08 per diluted share.
Avista
Avista
Forward Guidance
Avista Corp lowered its 2022 consolidated earnings guidance by $0.05 per diluted share to a range of $1.88 to $2.08 per diluted share and also lowered its 2023 consolidated earnings guidance by $0.15 per diluted share to a range of $2.27 to $2.47 per diluted share.
Positive Outlook
- Assumes timely and appropriate rate relief in all of our jurisdictions, including approval of the 2022 Washington general rate case settlement.
- AEL&P to contribute in the range of $0.08 to $0.10 per diluted share for each of 2022 and 2023.
- AEL&P's interim and refundable base rate increase of 4.5 percent associated with their 2022 general rate case was approved and became effective in September 2022.
- Continue to expect the other businesses to contribute in the range of $0.14 to $0.16 per diluted share in 2022, with increased net investment gains during the year.
- Expect our other businesses to contribute in the range of $0.04 to $0.06 per diluted share in 2023.
Challenges Ahead
- Rising interest rates and operating costs.
- Expect increases in borrowing costs, pension expense, and depreciation.
- Avista Utilities to contribute in the range of $1.66 to $1.82 per diluted share for 2022, a decrease from the previous range of $1.71 to $1.87 per diluted share.
- 2022 forecast for the ERM is an expense position within the 90 percent customer/10 percent Company sharing band, which is expected to reduce earnings by $0.09 per diluted share.
- Expect a range of $2.15 to $2.31 per diluted share for 2023, a decrease from the previous range of $2.30 to $2.46 per diluted share.