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Sep 30, 2024

PGE Q3 2024 Earnings Report

Third quarter results reflected improved power cost conditions and continued robust demand growth from high-tech and data center customers.

Key Takeaways

Portland General Electric reported net income of $94 million, or $0.90 per diluted share, for the third quarter of 2024, compared to $47 million, or $0.46 per diluted share, for the third quarter of 2023. The results reflect improved power cost conditions and continued robust demand growth from high-tech and data center customers.

Third quarter results reflect improved power cost conditions and continued robust demand growth from high-tech and data center customers

Total revenues increased due to demand growth from semiconductor manufacturing and technology infrastructure customers, increased wholesale revenues and recovery of capital, operating and power costs.

PGE filed a request for acknowledgement of the final shortlist of bidders for the 2023 All-source RFP to the Public Utility Commission of Oregon (OPUC) on September 17, 2024.

PGE is narrowing its estimate for full-year 2024 adjusted earnings guidance from $2.98 to $3.18 to a revised range of between $3.08 and $3.18 per diluted share

Total Revenue
$821M
Previous year: $706M
+16.3%
EPS
$0.9
Previous year: $0.46
+95.7%
Gross Profit
$418M
Previous year: $416M
+0.5%
Cash and Equivalents
$35M
Previous year: $47M
-25.5%
Free Cash Flow
-$9M
Previous year: -$170M
-94.7%
Total Assets
$11.9B
Previous year: $10.6B
+12.1%

PGE

PGE

PGE Revenue by Segment

Forward Guidance

PGE is narrowing its estimate for full-year 2024 adjusted earnings guidance from $2.98 to $3.18 to a revised range of between $3.08 and $3.18 per diluted share based on several assumptions.

Positive Outlook

  • Exclusion of the impacts of the January 2024 winter storm, including non-deferrable Reliability Contingency Event (RCE) costs
  • An increase in energy deliveries of 2% to 3%, weather adjusted
  • Normal temperatures in its utility service territory
  • Hydro conditions for the 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

  • Normal thermal plant operations
  • Revised operating and maintenance expense from between $800 and $825 million to between $820 million and $845 million, which includes $17 million from the release of the January 2024 storm deferral.
  • This range includes approximately $150 million of wildfire, vegetation management, deferral amortization and other expenses that are offset in other income statement lines
  • Depreciation and amortization expense between $475 million and $525 million
  • Effective tax rate of 10% to 15%

Revenue & Expenses

Visualization of income flow from segment revenue to net income