Portland General Electric Co (POR, Financial) announced its third-quarter 2023 results on October 27, 2023. The company reported GAAP net income of $47 million, or $0.46 per diluted share, compared to $58 million, or $0.65 per diluted share, for the same period in 2022. The company attributed the decrease in net income to challenging weather conditions, power market volatility, and continued investment in grid resiliency, customer growth, and decarbonization.
Financial Performance
Total revenues for Q3 2023 increased due to higher demand from digital customers and increased recovery of power costs, partially offset by lower residential and commercial usage. Purchased power and fuel expense increased primarily due to less favorable power market conditions resulting from periods of extreme summer heat. Operating and administrative expenses increased due to higher grid maintenance and resiliency costs and higher generation maintenance costs. Depreciation and amortization expense and interest expense increased due to ongoing capital investment.
Company Updates
On October 6, 2023, POR reached a settlement in its general rate case, resolving remaining issues and improving power cost risk management. The company also received three grants from the Department of Energy, reinforcing its commitment to advancing the clean energy transition in collaboration with regional partners.
Financial Tables Summary
The company's total revenues for Q3 2023 were $802 million, compared to $743 million for Q3 2022. Total operating expenses for the quarter were $717 million, compared to $651 million for the same period in 2022. Net income for Q3 2023 was $47 million, compared to $58 million for Q3 2022.
Outlook
Portland General Electric Co (POR, Financial) has narrowed its estimate for full-year 2023 adjusted earnings guidance from $2.60 to $2.75 to $2.60 to $2.65 per diluted share. This is based on assumptions including an increase in energy deliveries of 2%, 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; normal thermal plant operations; and operating and maintenance expense between $695 million and $715 million.
The company continues to pursue multiple areas under federal legislative programs for potential grant funding of projects. For the 14th year, POR's voluntary renewable energy program, Green Future, was ranked number one by the U.S. Department of Energy’s National Renewable Energy Laboratory for the largest participation of business and residential customers in a renewables program of any electric utility in the U.S.
Explore the complete 8-K earnings release (here) from Portland General Electric Co for further details.
