On July 25, 2024, PG&E Corp (PCG, Financial) released its 8-K filing detailing its financial performance for the second quarter of 2024. PG&E Corp (PCG) is a holding company whose main subsidiary, Pacific Gas and Electric, serves 5.3 million electricity customers and 4.6 million gas customers in Central and Northern California.
Performance Overview
PG&E Corp (PCG, Financial) reported GAAP earnings of $0.24 per share for Q2 2024, compared to $0.19 per share in Q2 2023. Non-GAAP core earnings were $0.31 per share, up from $0.23 per share in the same period last year. The company recorded total operating revenues of $5,986 million, an increase from $5,290 million in Q2 2023.
Financial Achievements and Challenges
PG&E Corp (PCG, Financial) achieved significant financial milestones, including a notable increase in customer capital investment and non-fuel operating and maintenance savings. These achievements are crucial for a regulated utility company, as they directly impact the company's ability to provide reliable services while maintaining financial stability.
However, the company continues to face challenges, including wildfire-related costs and legal expenses. These issues could potentially impact future earnings and operational efficiency.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Operating Revenues | $5,986 million | $5,290 million |
| Operating Income | $1,134 million | $506 million |
| Net Income | $524 million | $410 million |
| GAAP EPS | $0.24 | $0.19 |
| Non-GAAP Core EPS | $0.31 | $0.23 |
Balance Sheet and Cash Flow
PG&E Corp (PCG, Financial) reported a strong balance sheet with significant investments in infrastructure and safety measures. The company installed 46 miles of underground powerlines and 43 miles of stronger poles and covered powerlines in high fire-risk areas. Additionally, PG&E connected 2,900 new residential and business customers to its electric system in Q2 2024.
Guidance and Future Outlook
PG&E Corp (PCG, Financial) updated its 2024 GAAP earnings guidance to a range of $1.11 to $1.17 per share, down from the previous range of $1.15 to $1.20 per share. The company reaffirmed its non-GAAP core EPS guidance at $1.33 to $1.37 per share. PG&E also stated that it does not anticipate any equity needs for 2024 and reaffirmed its 2024-2028 financing plan.
“We’re delivering for our customers and hometowns today through a foundation of safe operations, wildfire risk reduction, and solid financial progress. We also see a bright future where we lower average household energy costs, including from transportation, and further cut carbon emissions,” said PG&E Corporation CEO Patti Poppe.
Conclusion
PG&E Corp (PCG, Financial) demonstrated solid financial performance in Q2 2024, with significant improvements in both GAAP and non-GAAP earnings per share. While the company faces ongoing challenges related to wildfire costs and legal expenses, its strong operational achievements and updated guidance indicate a positive outlook for the remainder of 2024.
For more detailed information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from PG&E Corp for further details.
