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Jun 30, 2021

PGE Q2 2021 Earnings Report

Reported strong retail deliveries and customer growth, maintained reliable operations setting a new peak load record, and aligned strategic decarbonization goals with Oregon’s new clean energy legislation.

Key Takeaways

Portland General Electric reported a net income of $32 million, or 36 cents per diluted share, for the second quarter of 2021, compared to $39 million, or 43 cents per diluted share, for the second quarter of 2020. The company is raising its full-year 2021 earnings guidance from $2.55 to $2.70 per diluted share to $2.70 to $2.85 per diluted share.

Second quarter results reflect strong retail deliveries and customer growth

Reliable operations as new peak load record set

Strategic decarbonization goals align with legislative passage of Oregon’s new clean energy legislation

Raising 2021 earnings guidance from $2.55 to $2.70 to $2.70 to $2.85 per diluted share

Total Revenue
$537M
Previous year: $469M
+14.5%
EPS
$0.36
Previous year: $0.43
-16.3%
Gross Profit
$352M
Previous year: $360M
-2.2%
Cash and Equivalents
$17M
Previous year: $303M
-94.4%
Free Cash Flow
-$65M
Previous year: -$7M
+828.6%
Total Assets
$9.1B
Previous year: $8.81B
+3.3%

PGE

PGE

PGE Revenue by Segment

Forward Guidance

PGE is raising its full-year 2021 earnings guidance from $2.55 to $2.70 per diluted share to $2.70 to $2.85 per diluted share based on the following assumptions:

Positive Outlook

  • An increase in annual energy deliveries from 1% and 1.5%, to 2.5% to 3.0%, weather-adjusted, which reflects year over year: Commercial segment growth, as economic recovery has taken hold earlier and more rapidly than anticipated
  • Strong growth in the industrial segment reflecting expansions in high tech manufacturing and digital services
  • Normal temperatures in its utility service territory for the remainder of the year
  • Hydro conditions for the remainder of year that reflect current estimates
  • Wind generation based on five years of historical levels or forecast studies when historical data is not available

Challenges Ahead

  • These increases are partially offset by a decrease in residential demand as customers spend less time at home
  • Normal thermal plant operations for the remainder of the year
  • Capital expenditures of $700 million
  • Revised average construction work in progress balance from $340 million to $390 million
  • Revised operating and maintenance expense from between $595 million and $615 million, to between $605 million and $625 million in order to enhance and accelerate vegetation management and grid restoration and resiliency

Revenue & Expenses

Visualization of income flow from segment revenue to net income