Portland General Electric Company (POR) Q4 2022 earnings summary

Executive summary

• 2022 advanced decarbonization and grid investment while severe weather and volatile power markets pressured costs; specified non-emitting sources served 39% of retail load, up from 35% in 2021.

• GAAP net income was $233M, or $2.60 diluted EPS; adjusted net income was $245M, or $2.74 per diluted share, excluding a $17M pre-tax deferral earnings-test charge.

Financial highlights

• Revenue rose 10% YoY to $2.647B; operating income increased to $397M from $378M, while net income fell 5% to $233M.

• Purchased power and fuel expense climbed 20% to $988M, outpacing the increase in retail revenue as higher power and gas costs exceeded customer price recovery.

• Operating cash flow increased to $674M from $532M; cash and equivalents ended 2022 at $165M.

Outlook and guidance

• 2023 capital expenditures are projected at $1.2B; operating cash flow is expected at $700M–$750M, with debt and equity issuances and short-term debt available to fund investment as needed.

• 2023 retail deliveries are projected 2.5%–3.0% above 2022 weather-adjusted levels, reflecting continued industrial growth.

• Long-term strategy targets 5%–7% annual EPS growth and at least 80% lower retail-load GHG emissions by 2030, reaching 100% by 2040.

• The 2024 rate-case filing requests an average customer price increase of 14.0%, including ~4.5% for higher forecast net variable power costs; a final order is expected December 2023.