Portland General Electric Company (POR) Q4 2015 earnings summary

Executive summary

• 2015 net income attributable to common shareholders was $172 million, or $2.04 diluted EPS, versus $175 million and $2.18 in 2014; warmer winter weather reduced sales.

• Operations remained reliable: generating availability averaged 92.5%, and customer satisfaction ranked in the top quartile.

Financial highlights

• Revenue was $1.898 billion in 2015 versus $1.900 billion in 2014; operating income rose to $309 million from $293 million.

• Gross margin increased to $1.237 billion, or 65% of revenue, from $1.187 billion, or 62%, in 2014; purchased power and fuel expense fell 7% to $661 million.

• Operating cash flow was $517 million; capital expenditures were $598 million, down from $1.007 billion in 2014.

Outlook and guidance

• 2016 weather-adjusted retail deliveries are projected to rise ~1% from 2015 levels, after energy efficiency and conservation and the departure of a large paper customer.

• 2016 capital requirements are expected to be $623 million; operating cash flow is forecast at $490 million-$530 million, with short- and long-term debt issuance also planned.

• Carty is targeted to enter service in July 2016; estimated total cost is $620 million-$655 million including AFDC, with customer-price recovery approved up to $514 million if in service by July 31, 2016.