PPL Corp., the Pennsylvania-based electrical-utility company, has announced its intention to invest additional billions into its system as part of its strategy to increase rates. Despite facing challenges caused by mild weather, heightened storm activity, and macroeconomic factors in the previous year, the company reported a fourth-quarter profit of $113 million, or 15 cents per share. This figure compares to $190 million, or 26 cents per share, during the same period a year earlier.
Adjusted earnings, excluding one-time items, were reported at 40 cents per share, exceeding analysts’ expectations of 38 cents per share. However, revenue experienced a decline of over 11%, amounting to $2.03 billion, in contrast to the expected $1.9 billion from analysts. Operating costs also decreased by more than 16% to $1.64 billion.
Looking ahead to 2024, PPL Corp. aims to achieve earnings of $1.63 to $1.75 per share. Analysts predict non-adjusted earnings of $1.69 per share for that year. Furthermore, the company has increased its planned infrastructure investments from $11.9 billion to $14.3 billion for the period between 2024 and 2027. These investments are projected to result in a 6.3% average annual rate base growth through 2027, surpassing the 5.6% growth recorded over the previous plan period.
In summary, despite encountering various challenges in recent times, PPL Corp. remains focused on expanding its system and improving its financial performance.
