PPL last week said it expects to need to raise only about $2 billion from equity sales through 2020, which would enable the company to come in near the top of its projected 5 to 6% compound annual earnings growth per share over that time.
During its first-quarter earnings call, the company also said it expect calls for nationalization of electric utilities in the U.K. to fade and that it isn’t interested in fully or partially divesting its business there.
PPL earned $452 million ($0.65/share) on revenue of $2.13 billion in the first quarter, as opposed to $403 million ($0.59/share) on revenue of $1.95 billion in the first quarter of last year. Its adjusted earnings were 74 cents/share, beating the Zacks consensus estimate of 66 cents. The difference stemmed from a one-time impact of 9 cents/share from foreign currency hedges.
PPL expects to use its “at the market” offering program for most of its equity sales. CFO Vincent Sorgi said the company has a shelf offering that would allow it to sell up to $3 billion in stock.
The company isn’t looking to perform acquisitions, but rather to pursue organic growth, with midsized transmission projects such as Project Compass being the kind of opportunities it envisions after 2020, according to CEO Bill Spence.
Quotes courtesy of Seeking Alpha.
— Peter Key