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Sep 30, 2022
PSEG Q3 2022 Earnings Report
PSEG reported mixed results for Q3 2022, with net income decreasing but non-GAAP operating earnings remaining strong. The company narrowed its 2022 non-GAAP operating earnings guidance.
Key Takeaways
Public Service Enterprise Group (PSEG) reported a Net Income of $114 million, or $0.22 per share, for the third quarter of 2022. Non-GAAP Operating Earnings for the third quarter of 2022 were $429 million, or $0.86 per share. The company narrowed its 2022 non-GAAP operating earnings guidance to $3.40 - $3.50 per share.
Net Income for Q3 2022 was $114 million, or $0.22 per share.
Non-GAAP Operating Earnings for Q3 2022 were $429 million, or $0.86 per share.
PSEG narrowed its 2022 Non-GAAP Operating Earnings guidance to $3.40 - $3.50 per share.
PSE&G's investments in transmission and distribution infrastructure continue to produce rate base growth.
PSEG
PSEG
Forward Guidance
PSEG narrowed its non-GAAP Operating Earnings guidance for 2022, and remains confident in the growth potential of its regulated investments and are committed to the cost discipline needed to minimize the impact of current economic conditions.
Positive Outlook
- Continued investments in transmission and distribution infrastructure.
- Infrastructure Advancement Program supports decarbonization priorities.
- MSCI raised PSEG’s corporate Environmental, Social and Governance rating to AAA.
- Inflation Reduction Act of 2022 will have important revenue visibility and price stabilizing benefits for nuclear fleet.
- PSE&G was awarded $40 million of system upgrade work needed to accommodate the injection of offshore wind generation in central New Jersey.
Challenges Ahead
- PSEG’s continuation as an equity owner of Ocean Wind 1 project is subject to its final investment decision.
- Reviewing options regarding the status of PSEG’s 25% equity investment in the project.
- CFIO were $0.15 per share lower than in the third quarter of 2021, driven by lower margin related to the fossil divestiture, lower capacity prices for the remaining nuclear fleet and re-contracting at lower prices.
- Electric gross margin declined by $0.29 per share, which includes re-contracting approximately 8 TWh of nuclear generation at a $3/MWh lower average price.
- PSEG Power had net cash collateral postings of $2.2 billion at September 30 related to out-of-the-money hedge positions as a result of higher energy prices during the first three quarters of 2022.