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Jun 30, 2020

PPL Q2 2020 Earnings Report

Reported earnings for Q2 2020, reaffirming 2020 earnings forecast and withdrawing 2021 guidance due to the announced sale of the U.K. business.

Key Takeaways

PPL Corporation announced second-quarter 2020 reported earnings (GAAP) of $344 million, or $0.45 per share, compared with second-quarter 2019 reported earnings of $441 million, or $0.60 per share. Adjusting for special items, second-quarter 2020 earnings from ongoing operations (non-GAAP) were $427 million, or $0.55 per share, compared to $422 million, or $0.58 per share, a year ago. The company reaffirmed its 2020 guidance range of $2.40 to $2.60 per share and withdrew its financial guidance for 2021.

Second-quarter reported earnings were $0.45 per share, and earnings from ongoing operations were $0.55 per share.

The company reaffirmed its 2020 earnings from ongoing operations forecast range of $2.40 to $2.60 per share.

Guidance for 2021 was withdrawn due to the announced process to sell the U.K. business.

PPL Electric Utilities restored power to all 70,000 affected customers within 48 hours following Tropical Storm Isaias.

Total Revenue
$1.74B
Previous year: $1.8B
-3.5%
EPS
$0.55
Previous year: $0.58
-5.2%
Gross Profit
$981M
Previous year: $1.02B
-3.3%
Cash and Equivalents
$1.28B
Previous year: $406M
+214.8%
Free Cash Flow
-$353M
Previous year: -$149M
+136.9%
Total Assets
$46.5B
Previous year: $44.2B
+5.2%

PPL

PPL

PPL Revenue by Segment

Forward Guidance

PPL reaffirmed its 2020 earnings from ongoing operations forecast range of $2.40 to $2.60 per share, with results expected to track toward the lower end of the guidance range due to COVID-19 and unfavorable weather impacts in the first half of the year.

Challenges Ahead

  • COVID-19 impacts
  • Unfavorable weather impacts
  • Lower sale volumes in the U.K.
  • Incremental costs for labor not chargeable to capital projects
  • Impact on outside services, customer payment processing, purchases of personal protective equipment and other safety related actions associated with the COVID-19 pandemic.

Revenue & Expenses

Visualization of income flow from segment revenue to net income