Avista Q4 2022 Earnings Report
Key Takeaways
Avista Corp. reported a net income of $78.0 million, or $1.05 per diluted share, for the fourth quarter of 2022, compared to $50.9 million, or $0.71 per diluted share, for the fourth quarter of 2021. The company confirmed its 2023 consolidated earnings guidance with a range of $2.27 to $2.47 per diluted share.
Net income for Q4 2022 was $78.0 million, or $1.05 per diluted share, compared to $50.9 million, or $0.71 per diluted share, for Q4 2021.
Consolidated earnings for 2022 were better than expected due to increases in the fair value of certain non-regulated investments.
Avista Utilities' earnings were slightly below expectations due to higher power supply costs.
The company filed a multi-year rate plan in Idaho to recover infrastructure investment and increased operating costs.
Avista
Avista
Forward Guidance
Avista Corp. is confirming its 2023 consolidated earnings guidance with a range of $2.27 to $2.47 per diluted share.
Positive Outlook
- Timely and appropriate rate relief in all of our jurisdictions
- Avista Utilities to contribute in the range of $2.15 to $2.31 per diluted share.
- Expect to be in the deadband of the ERM, with an increase to earnings of $0.03 per diluted share.
- Expect to manage our operating costs to an increase of 2 percent in 2023.
- AEL&P to contribute in the range of $0.08 to $0.10 per diluted share.
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 80 basis points.
- Expected return on equity for Avista Utilities of approximately 7.9 percent in 2023.
- Guidance assumes normal precipitation, temperatures, hydroelectric generation, and other operating conditions.
- Guidance does not include the effect of unusual or non-recurring items until the effects are known and certain.