Portland General Electric Company (POR) Q4 2020 earnings summary

Executive summary

• 2020 GAAP net income was $155M and diluted EPS $1.72; excluding the $92M after-tax energy-trading loss, adjusted net income was $247M and EPS $2.75.

• Retail deliveries rose 0.4% despite COVID-19 demand shifts; operating and administrative expenses decreased 6% YoY through efficiencies and cost control.

• Long-term strategy targets 80% lower emissions from delivered electricity by 2030 and an aspirational net-zero goal by 2040.

Financial highlights

• Revenue was $2,145M, up 1% YoY; operating income fell 24% to $269M, gross margin declined 5% to $1,437M, and net income fell 28% to $155M.

• Diluted EPS was $1.72 vs. $2.39 in 2019; adjusted for the energy-trading losses, 2020 non-GAAP diluted EPS was $2.75.

• Purchased power and fuel expense rose 15% to $708M; the $127M realized trading loss was a major contributor to higher costs.

• Operating cash flow was $567M; capital expenditures were $784M, and cash and cash equivalents ended 2020 at $257M.

Outlook and guidance

• 2021 diluted EPS guidance is $2.55-$2.70; long-term targets remain 4%-6% average EPS growth and 5%-7% dividend growth.

• 2021 retail deliveries are projected 1.0%-1.5% above 2020 weather-adjusted levels, reflecting industrial strength and COVID-related demand patterns.

• 2021 capital expenditures are planned at $655M; expected operating cash flow is $600M-$650M, with debt issuance up to $300M and commercial paper as needed.

• 2021 AUT anticipates a $79M increase in net variable power costs, recovered through customer prices beginning January 1, 2021.