Idacorp (IDA) Q4 2020 earnings summary

Executive summary

• 13th consecutive year of earnings growth; net income attributable to shareholders rose to $237.4 million from $232.9 million, supported by customer growth and cost management.

• Customer count grew 2.7% to 587,358; operations remained largely uninterrupted, with 99.96% power reliability during the pandemic.

Financial highlights

• 2020 operating revenue was $1.351 billion versus $1.346 billion in 2019; operating income increased to $309.5 million from $298.3 million.

• Net income attributable to shareholders was $237.4 million, up from $232.9 million; diluted EPS rose to $4.69 from $4.61.

• Retail revenue increased $37.1 million; lower wholesale energy sales revenue and transmission wheeling revenue partly offset customer growth and higher retail usage.

• O&M expense declined $3.7 million YoY to $352.1 million, reflecting lower thermal maintenance, North Valmy unit 1 exit effects and reduced incentive compensation.

Outlook and guidance

• Initiated 2021 diluted EPS guidance of $4.60–$4.80; expected 2021 hydropower generation of 6.0–8.0 million MWh.

• Estimated 2021–2025 capital expenditures of about $2 billion; 2021 construction expenditures forecast at $320–$330 million, excluding AFUDC.

• Customer growth is expected to continue; service-area GDP forecasts indicate growth of 6.1% in 2021 and 6.8% in 2022 after a 1.7% decline in 2020.

• No general rate case anticipated in the next 12 months; full $45 million of Idaho regulatory-stipulation tax credits remained available for future earnings support.