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PSEG
🇺🇸 NYSE:PEG
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Sep 30, 2023

PSEG Q3 2023 Earnings Report

PSEG reported solid operating and financial results.

Key Takeaways

PSEG announced third quarter 2023 results, with a Net Income of $0.27 per share and Non-GAAP Operating Earnings of $0.85 per share. The company re-affirmed its full-year 2023 Non-GAAP Operating EPS guidance range of $3.40 - $3.50.

PSEG posted solid operating and financial results for the third quarter.

The company is on pace to achieve its guidance for full-year 2023 non-GAAP Operating Earnings of $3.40 to $3.50 per share.

PSE&G invested approximately $1 billion in capital spending during the third quarter, bringing the year-to-date spend to $2.7 billion.

The New Jersey Board of Public Utilities (BPU) approved a settlement to extend PSE&G’s Gas System Modernization Program II (GSMP) through 2025 for approximately $900 million.

Total Revenue
$2.46B
Previous year: $2.27B
+8.1%
EPS
$0.85
Previous year: $0.86
-1.2%
Rate Base
$6
Gross Profit
$833M
Previous year: $495M
+68.3%
Cash and Equivalents
$57M
Previous year: $377M
-84.9%
Free Cash Flow
-$229M
Previous year: -$452M
-49.3%
Total Assets
$49.6B
Previous year: $47.7B
+3.8%

PSEG

PSEG

Forward Guidance

PSEG re-affirms full-year 2023 non-GAAP Operating EPS guidance range of $3.40 - $3.50. PSE&G’s forecast of non-GAAP Operating Earnings for 2023 is unchanged at $1,500 million - $1,525 million. The full-year 2023 forecast for PSEG Power & Other non-GAAP Operating Earnings is unchanged at $200 million - $225 million.

Positive Outlook

  • The company is on pace to achieve its guidance for full-year 2023 non-GAAP Operating Earnings.
  • PSE&G benefited from growth in Transmission and Distribution margins resulting from continued investment in infrastructure replacement and clean energy programs.
  • PSE&G benefited from lower operating and maintenance expense.
  • The Conservation Incentive Program (CIP) continues to effectively offset the impact of volumetric changes in electric and gas sales.
  • PSEG Power & Other results for the quarter reflect a continued improvement in energy margin from lower cost-to-serve hedges.

Challenges Ahead

  • PSE&G experienced lower pension income and other postretirement benefit (OPEB) credits.
  • PSE&G experienced incremental depreciation and interest expense related to higher investment.
  • PSEG Power & Other results were offset by a reduction in capacity revenues.
  • PSEG Power & Other results were offset by lower pension income and OPEB credits.
  • PSEG Power & Other results were offset by higher interest expense compared with third quarter 2022.

Company Overview

Full financial data and analysis

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