Public Service Enterprise Group (NYSE:PEG) (PSEG) reported increased net income for Q3 2023, driven by growth in transmission and distribution margins, lower O&M expenses, and increased infrastructure and clean energy investments. The company also reaffirmed its full-year 2023 non-GAAP operating earnings guidance and its long-term 5% to 7% earnings growth outlook.
Key takeaways from the call:
- PSEG reported Q3 2023 net income of $0.27 per share, an increase from $0.22 per share in Q3 2022.
- The company's utility division, PSE&G, reported net income of $0.80 per share for Q3 2023, slightly higher than the same period in the previous year.
- PSEG Power & Other reported a net loss of $0.53 per share for Q3 2023, primarily due to a pension settlement charge.
- PSEG reaffirmed its full-year 2023 non-GAAP operating earnings guidance of $3.40 to $3.50 per share.
- The company invested $1 billion in energy infrastructure during Q3, bringing the year-to-date spend to $2.7 billion, with a full-year capital expenditure expected to be $3.7 billion.
- PSEG's nuclear fleet operated at 95.8% capacity factor during the year-to-date period, producing 24.3 terawatt hours of carbon-free baseload energy.
- The company is committed to the United Nations back race to zero campaign and is working towards validation.
PSEG reported a Q3 net income of $139 million, up from $114 million in the same period of 2022. The company's utility division, PSE&G, reported a net income of $401 million, slightly higher than the $399 million reported in Q3 2022. These positive results were attributed to growth in transmission and distribution margins, lower O&M expenses, and increased infrastructure and clean energy investments.
The company's energy efficiency solutions are seeing strong demand, supporting the energy transition and decarbonization of the New Jersey economy. PSEG's nuclear fleet operated at 95.8% capacity factor during the year-to-date period, producing 24.3 terawatt hours of carbon-free baseload energy.
PSEG also discussed its commitment to the United Nations back race to zero campaign, with a submission made for validation. The company plans to provide 2024 earnings guidance and other financial updates in December.
During the call, the company expressed confidence in funding its debt capacity without the need for additional funding. They also discussed the rate case, stating that there were no significant changes to their plans and that they would include factors like interest rates and pension expenses in the filing.
PSEG President and COO, Ralph LaRossa, clarified that the company's rate base compound annual growth rate (CAGR) will fall within the previously announced range of 5% to 7%. He also mentioned that more information on the company's plans will be provided in December and January, including updates on the General Service Modernization Program (GSMP) and the PJM transmission.
The company concluded the call by expressing gratitude for the team's work and highlighting achievements such as gas system monetization, awards, lower gas bills, and a refreshed Board of Directors. The call ended with well wishes for Halloween.
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