Portland General Electric announces first quarter 2019 results

<< Back Share

Portland General Electric announces first quarter 2019 results

- Reaffirming 2019 guidance of $2.35 - $2.50 per diluted share
- Announced annual dividend increase of 9 cents per share or 6.3% growth

PORTLAND, Ore., April 26, 2019 /PRNewswire/ -- Portland General Electric Company (NYSE: POR) today reported net income of $73 million, or 82 cents per diluted share, for the first quarter of 2019. This compares with net income of $64 million, or 72 cents per diluted share, for the first quarter of 2018.

"Against the backdrop of highly volatile regional energy markets, our power supply portfolio performed well, allowing us to effectively manage costs and deliver solid results," said Maria Pope, PGE president and CEO. "Additionally, we are advancing our transportation electrification plan to expand infrastructure and increase access vital to cleaner energy for Oregon."

Q1 2019 earnings compared to Q1 2018 earnings

The increase in first quarter earnings was primarily driven by colder temperatures resulting in higher energy deliveries, an increase in retail revenue and strong power supply portfolio performance. This was partially offset by higher market prices for power in the West due to cold temperatures that increased regional demand, lower than average wind and hydropower production, and pipeline capacity reductions in natural gas supply. Remaining earnings drivers include the absence of costs associated with Carty litigation in 2019 as compared to 2018, a reduction in production tax credits as wind underperformed and a decrease in miscellaneous other items.

2019 earnings guidance

PGE is affirming its 2019 guidance of $2.35 to $2.50 per diluted share. This guidance is based on the following assumptions:

  • Increase in retail deliveries of 0.5%
  • Average hydro conditions for the year
  • Wind generation based on five years of historical levels or forecast studies when historical data is not available
  • Normal thermal plant operations
  • Depreciation and amortization expense between $400 million and $420 million
  • Operating and maintenance costs between $585 million and $605 million

First Quarter 2019 earnings call and webcast — April 26, 2019

PGE will host a conference call with financial analysts and investors on Friday, April 26, 2019, at 11 a.m. ET. The conference call will be webcast live on the PGE website at investors.portlandgeneral.com. A replay of the call will be available beginning at 2 p.m. ET on Friday, April 26, 2019, through 2 p.m. ET on Friday, May 3, 2019.

Maria Pope, president and CEO; Jim Lobdell, senior vice president of Finance, CFO, and treasurer; and Chris Liddle, director, Investor Relations and Treasury, will participate in the call. Management will respond to questions following formal comments.

The attached unaudited condensed consolidated statements of income and comprehensive income, condensed consolidated balance sheets, and condensed consolidated statements of cash flows, as well as the supplemental operating statistics, are an integral part of this earnings release.

About Portland General Electric Company

Portland General Electric (NYSE: POR) is a fully integrated energy company based in Portland, Oregon, serving more than 887,000 customers in 51 cities. For 130 years, PGE has been delivering safe, affordable and reliable energy to Oregonians. Together with its customers, PGE has the No. 1 voluntary renewable energy program in the U.S. With approximately 3,000 employees across the state, PGE is committed to helping its customers and the communities it serves build a clean energy future. For more information, visit PortlandGeneral.com/CleanVision.

Safe Harbor Statement

Statements in this news release that relate to future plans, objectives, expectations, performance, events and the like may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding earnings guidance; statements regarding future load, hydro conditions and operating and maintenance costs; statements concerning implementation of the company's integrated resource plan; statements concerning future compliance with regulations limiting emissions from generation facilities and the costs to achieve such compliance; as well as other statements containing words such as "anticipates," "believes," "intends," "estimates," "promises," "expects," "should," "conditioned upon," and similar expressions. Investors are cautioned that any such forward-looking statements are subject to risks and uncertainties, including reductions in demand for electricity; the sale of excess energy during periods of low demand or low wholesale market prices; operational risks relating to the company's generation facilities, including hydro conditions, wind conditions, disruption of fuel supply, and unscheduled plant outages, which may result in unanticipated operating, maintenance and repair costs, as well as replacement power costs; failure to complete capital projects on schedule or within budget, or the abandonment of capital projects, which could result in the company's inability to recover project costs; the costs of compliance with environmental laws and regulations, including those that govern emissions from thermal power plants; changes in weather, hydroelectric and energy markets conditions, which could affect the availability and cost of purchased power and fuel; changes in capital market conditions, which could affect the availability and cost of capital and result in delay or cancellation of capital projects; the outcome of various legal and regulatory proceedings; general economic and financial market conditions; severe weather conditions, wildfires, and other natural phenomena and natural disasters that could result in operational disruptions, unanticipated restoration costs, or liability for third party property damage; and cyber security breaches of the company's customer information system or operating systems, which may affect customer bills or other aspects of our operations. As a result, actual results may differ materially from those projected in the forward-looking statements. All forward-looking statements included in this news release are based on information available to the company on the date hereof and such statements speak only as of the date hereof. The company expressly disclaims any current intention to update publicly any forward-looking statement after the distribution of this release, whether as a result of new information, future events, changes in assumptions or otherwise. Prospective investors should also review the risks, assumptions and uncertainties listed in the company's most recent annual report on form 10-K and in other documents that we file with the United States Securities and Exchange Commission, including management's discussion and analysis of financial condition and results of operations and the risks described therein from time to time.

POR

Source: Portland General Company

 

PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

AND COMPREHENSIVE INCOME

(Dollars in millions, except per share amounts)

(Unaudited)



Three Months Ended
March 31,


2019


2018

Revenues:




Revenues, net

$

570


$

495

Alternative revenue programs, net of amortization

3


(2)

Total revenues

573


493

Operating expenses:




Purchased power and fuel

179


130

Generation, transmission and distribution

77


69

Administrative and other

71


69

Depreciation and amortization

101


92

Taxes other than income taxes

34


33

Total operating expenses

462


393

Income from operations

111


100

Interest expense, net

32


31

Other income:




Allowance for equity funds used during construction

3


4

Miscellaneous income (expense), net

2


(1)

Other income, net

5


3

Income before income tax expense

84


72

Income tax expense

11


8

Net income

73


64

Other comprehensive income

1


Comprehensive income

$

74


$

64





Weighted-average common shares outstanding—basic and diluted (in thousands)

89,309


89,160





Earnings per share—basic and diluted

$

0.82


$

0.72

 

PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in millions)

(Unaudited)



March 31,
2019


December 31,
2018

ASSETS




Current assets:




Cash and cash equivalents

$

89


$

119

Accounts receivable, net

226


193

Unbilled revenues

71


96

Inventories

81


84

Regulatory assets—current

21


61

Other current assets

108


90

Total current assets

596


643

Electric utility plant, net

6,747


6,887

Regulatory assets—noncurrent

380


401

Nuclear decommissioning trust

46


42

Non-qualified benefit plan trust

37


36

Other noncurrent assets

142


101

Total assets

$

7,948


$

8,110




March 31,
2019


December 31,
2018

LIABILITIES AND SHAREHOLDERS' EQUITY




Current liabilities:




Accounts payable

$

136


$

168

Liabilities from price risk management activities—current

32


55

Current portion of long-term debt

300


300

Accrued expenses and other current liabilities

263


268

Total current liabilities

731


791

Long-term debt, net of current portion

2,178


2,178

Regulatory liabilities—noncurrent

1,356


1,355

Deferred income taxes

380


369

Unfunded status of pension and postretirement plans

309


307

Liabilities from price risk management activities—noncurrent

78


101

Asset retirement obligations

198


197

Non-qualified benefit plan liabilities

103


103

Other noncurrent liabilities

67


203

Total liabilities

5,400


5,604

Commitments and contingencies (see notes)




Shareholders' Equity:




Preferred stock, no par value, 30,000,000 shares authorized; none issued and outstanding as of March 31, 2019 and December 31, 2018


Common stock, no par value, 160,000,000 shares authorized; 89,356,311 and 89,267,959 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively

1,212


1,212

Accumulated other comprehensive loss

(8)


(7)

Retained earnings

1,344


1,301

Total shareholders' equity

2,548


2,506

Total liabilities and shareholders' equity

$

7,948


$

8,110

 

PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)



Three Months Ended March 31,


2019


2018

Cash flows from operating activities:




Net income

$

73


$

64

Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization

101


92

Deferred income taxes

9


6

Pension and other postretirement benefits

6


6

Allowance for equity funds used during construction

(3)


(4)

Decoupling mechanism deferrals, net of amortization

(4)


3

(Amortization) Deferral of net benefits due to Tax Reform

(5)


15

Other non-cash income and expenses, net

10


4

Changes in working capital:




(Increase) decrease in accounts receivable and unbilled revenues

(1)


45

Decrease (increase) in inventories

3


(2)

Decrease (increase) in margin deposits, net

1


(6)

(Decrease) in accounts payable and accrued liabilities

(13)


(17)

Other working capital items, net

(12)


(5)

Other, net

(9)


(7)

Net cash provided by operating activities

156


194

Cash flows from investing activities:




Capital expenditures

(150)


(131)

Sales of Nuclear decommissioning trust securities

4


3

Purchases of Nuclear decommissioning trust securities

(2)


(3)

Other, net

(3)


1

Net cash used in investing activities

(151)


(130)

Cash flows from financing activities:




Dividends paid

(32)


(30)

Other

(3)


(3)

Net cash used in financing activities

(35)


(33)

(Decrease) increase in cash and cash equivalents

(30)


31

Cash and cash equivalents, beginning of period

119


39

Cash and cash equivalents, end of period

$

89


$

70





Supplemental cash flow information is as follows:




Cash paid for interest, net of amounts capitalized

$

13


$

13

 

PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

SUPPLEMENTAL OPERATING STATISTICS

(Unaudited)



Three Months Ended March 31,


2019


2018

Revenues (dollars in millions):








Retail:








Residential

$

290


50

%


$

268


54

%

Commercial

154


27



151


31


Industrial

44


8



44


9


Direct Access

11


2



10


2


Subtotal

499


87



473


96


Alternative revenue programs, net of amortization

3


1



(2)



Other accrued (deferred) revenues, net

7


1



(17)


(4)


Total retail revenues

509


89



454


92


Wholesale revenues

37


6



28


6


Other operating revenues

27


5



11


2


Total revenues

$

573


100

%


$

493


100

%










Energy deliveries (MWh in thousands):









Retail:









Residential

2,256


39

%


2,133


37

%

Commercial

1,631


28



1,597


27


Industrial

708


12



680


12


Subtotal

4,595


79



4,410


76


Direct access:









Commercial

164


3



152


3


Industrial

360


6



345


6


Subtotal

524


9



497


9


Total retail energy deliveries

5,119


88



4,907


85


Wholesale energy deliveries

674


12



874


15


Total energy deliveries

5,793


100

%


5,781


100

%










Average number of retail customers:









Residential

776,067


88

%


768,886


88

%

Commercial

109,750


12



106,730


12


Industrial

199




206



Direct access

631




597



Total

886,647


100

%


876,419


100

%

 

PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

SUPPLEMENTAL OPERATING STATISTICS, continued

(Unaudited)



Three Months Ended March 31,


2019


2018

Sources of energy (MWh in thousands):








Generation:








Thermal:








Natural gas

2,168



38

%


1,863



33

%

Coal

1,335



24



545



10


Total thermal

3,503



62



2,408



43


Hydro

377



7



472



8


Wind

212



4



475



8


Total generation

4,092



73



3,355



59


Purchased power:








Term

1,258



22



1,747



31


Hydro

247



4



506



9


Wind

41



1



58



1


Total purchased power

1,546



27



2,311



41


Total system load

5,638



100

%


5,666



100

%

Less: wholesale sales

(674)





(874)




Retail load requirement

4,964





4,792




The following table indicates the number of heating degree-days for the three months ended March 31, 2019 and 2018, along with 15-year averages based on weather data provided by the National Weather Service, as measured at Portland International Airport:


Heating Degree-days


2019


2018


Avg.

January

670



595



739

February

760



625



581

March

562



546



509

Year-to-date

1,992



1,766



1,829

Increase/(decrease) from the 15-year average

9

%


(3)

%



 

Media Contact:

Investor Contact:

Andrea Platt

Chris Liddle

Corporate Communications

Investor Relations

Phone: 503-464-7980

Phone: 503-464-7458

 

Cision View original content:http://www.prnewswire.com/news-releases/portland-general-electric-announces-first-quarter-2019-results-300838836.html

SOURCE Portland General Company