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Sep 30, 2020
PG&E Q3 2020 Earnings Report
Recorded mixed financial results, with GAAP earnings increasing but non-GAAP core earnings decreasing compared to the same period in 2019. The company is focused on wildfire mitigation and committed to safety and customer service.
Key Takeaways
PG&E Corporation reported GAAP earnings of $0.04 per share for the third quarter of 2020, a significant improvement compared to losses of $3.06 per share for the same period in 2019. However, non-GAAP core earnings were $0.22 per share, down from $1.11 per share in the third quarter of 2019. The company reaffirmed its 2020 non-GAAP core earnings guidance of $1.60 to $1.63 per share and adjusted its GAAP losses guidance to a range of $1.00 to $1.06. PG&E emerged from Chapter 11 bankruptcy on July 1, 2020, and is focused on wildfire mitigation and customer service.
GAAP earnings per share were $0.04 for Q3 2020, compared to a loss of $3.06 per share in Q3 2019.
Non-GAAP core earnings were $0.22 per share for Q3 2020, down from $1.11 per share in Q3 2019.
2020 EPS guidance adjusted for GAAP losses in the range of $1.00 to $1.06 and reaffirmed for non-GAAP core earnings of $1.60 to $1.63 per share.
The company is focused on wildfire mitigation and operating safely.
PG&E
PG&E
PG&E Revenue by Segment
Revenue by Segment
Electric Revenue
CapyFin.comNatural Gas Revenue
CapyFin.com Forward Guidance
PG&E Corporation is adjusting 2020 guidance for consolidated GAAP losses in the range of $1.00 to $1.06 per share and reaffirmed for non-GAAP core earnings of $1.60 to $1.63 per share. PG&E Corporation is adjusting 2021 GAAP earnings guidance in the range of $0.14 to $0.26 per share and reaffirmed non-GAAP core earnings of $0.95 to $1.05 per share.
Positive Outlook
- Reaffirmed 2020 non-GAAP core earnings guidance of $1.60 to $1.63 per share.
- Reaffirmed 2021 non-GAAP core earnings guidance of $0.95 to $1.05 per share.
- Adjusting 2020 guidance for consolidated GAAP losses in the range of $1.00 to $1.06 per share.
- Adjusting 2021 GAAP earnings guidance in the range of $0.14 to $0.26 per share.
- Guidance is based on various assumptions and forecasts, including those relating to future authorized revenues, expenses, capital expenditures, rate base, and certain other factors.
Challenges Ahead
- 2020 GAAP losses guidance in the range of $1.00 to $1.06 per share.
- Factors driving non-GAAP core earnings include net below the line and spend above authorized items of $200 million to $225 million after tax and unrecoverable interest expense of $125 million after tax for 2020.
- Factors driving non-GAAP core earnings include net below the line and spend above authorized of up to $100 million after tax and unrecoverable interest expense of $275 million to $325 million after tax for 2021.
- Adjusting 2021 non-core items guidance to approximately $1.8 billion after-tax for a net securitization inception charge, amortization of wildfire insurance fund contributions, bankruptcy and legal costs, and investigation remedies and delayed cost recovery, partially offset by prior period net regulatory recoveries.
- Guidance is based on various assumptions and forecasts, including those relating to authorized revenues, future expenses, capital expenditures, rate base, equity issuances, the potential Net Operating Loss (NOL) securitization, and certain other factors.
Revenue & Expenses
Visualization of income flow from segment revenue to net income