Dive Brief:
- PPL reported third-quarter earnings of $497 million, or $0.74 per share, an increase from $410 million a year ago. For the first nine months of 2014, the Pennsylvania-based utilities company reported earnings were $1.04 billion, or $1.57 per share, compared with $1.23 billion in the first nine months of 2013.
- The company also raised its 2014 earnings forecast by about 5.2%, and is now predicting earnings from ongoing operations of $2.37 to $2.47 per share.
- Company leadership said progress is being made on PPL's spinoff of its competitive generation business, which will be combined with Riverstone's competitive generation business. The two will form Talen Energy; that transaction is expected to close in the first half of 2015.
Dive Insight:
"Strong year-to-date performance in our regulated businesses, combined with continuing strong performance in our competitive energy supply business, has led us to increase our 2014 forecast range of earnings from ongoing operations," said William H. Spence, PPL's chairman, president and CEO, according to MarketWatch.
PPL's Kentucky regulated segment, consisting of Louisville Gas and Electric and Kentucky Utilities, saw earnings from ongoing operations in the third quarter of 2014 decrease by $0.02 per share. The company said the decline was "primarily due to lower sales volume due to mild weather, higher operation and maintenance expenses and higher financing costs, partially offset by returns on additional environmental capital investment."
PPL Electric Utilities in Pennsylvania reported flat segment earnings relative to a year ago, though the company said earnings from ongoing operations increased during the first nine months of 2014 by 5 cents per share. That increase was "primarily due to returns on additional transmission and distribution improvement capital investments, and higher sales volume driven by unusually cold weather in the first quarter of 2014, partially offset by higher financing costs," the company said.