Pinnacle West Q2 2023 Earnings Report
Key Takeaways
Pinnacle West reported a decrease in net income for the second quarter of 2023, with net income attributable to common shareholders at $106.7 million, or $0.94 per diluted share, compared to $164.3 million, or $1.45 per diluted share, for the same period in 2022. The decrease was primarily due to mild weather, higher operating and maintenance expenses, increased interest charges, and lower pension credits, partially offset by higher transmission revenue and revenue from the Lost Fixed Cost Recovery mechanism. However, the company increased its 2023 consolidated earnings range to $4.10 to $4.30 per diluted share on a weather-normalized basis.
Second-quarter earnings were impacted by mild weather conditions and higher operating costs.
APS is focused on supporting customers during the summer season.
The company is actively seeking flexible energy resources to meet Arizona's growing energy needs.
A new all-time peak of 8,193 megawatts was hit on July 20.
Pinnacle West
Pinnacle West
Forward Guidance
The company increased its 2023 consolidated earnings range to $4.10 to $4.30 per diluted share on a weather-normalized basis.
Positive Outlook
- Positive impact of the 2019 rate case appeal resolution in June
- Extremely hot weather to start the third quarter
- Increase its 2023 consolidated earnings range
- Company in strong position entering the second half of the year
- Robust customer growth
Challenges Ahead
- Higher than previously forecasted operations and maintenance expenses
- More moderate weather-normalized sales growth
- Mild weather
- Higher operating costs
- Higher interest charges