Portland General Electric Company (POR) Q4 2019 earnings summary

Executive summary

• 2019 net income was $214 million, or $2.39 diluted EPS, versus $212 million and $2.37 in 2018; shareholder return was 25%, including $1.50 per share in dividends.

• Strategic priorities centered on reliable operations, decarbonization, electrification, and smart-grid investment; retail customers reached 895,000.

Financial highlights

• Revenue rose to $2.123 billion from $1.991 billion; operating income was $353 million versus $346 million, and net income was $214 million versus $212 million.

• Gross margin, a non-GAAP measure, increased to $1.509 billion from $1.420 billion; purchased power and fuel expense rose to $614 million from $571 million.

• Q4 revenue was $548 million, operating income $97 million, net income $61 million, and diluted EPS $0.68; Q4 2018 comparatives were $524 million, $75 million, $49 million, and $0.55.

• Operating cash flow was $546 million versus $630 million; capital expenditures were $606 million versus $595 million.

Outlook and guidance

• 2020 diluted EPS guidance is $2.50–$2.65; expected long-term earnings growth is 4%–6% on average.

• 2020 retail deliveries were projected 0.5%–1.5% above 2019 weather-adjusted levels, with industrial strength partly offset by efficiency and conservation.

• 2020 capital expenditures are planned at $890 million; operating cash flow is estimated at $625 million–$675 million, with up to $400 million of debt issuance and commercial paper as needed.

• The 2019 resource plan proposed up to 150 average MW of renewable resources and up to 700 MW of capacity contribution from renewables, existing resources, and new non-emitting dispatchable capacity.