Profits Explode for RI Energy’s Parent Company

Profits Explode for RI Energy’s Parent Company

Rhode Island Energy’s parent company has announced big numbers to Wall Street and investors. 

PPL Corporation, the Pittsburgh-based energy company, purchased National Grid in Rhode Island in 2022 and rebranded it RI Energy.

On Thursday, PPL announced 2024 reported earnings of $888 million, or $1.20 per share, compared with 2023 reported earnings of $740 million, or $1.00 per share — a one-year 20% boost.

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The fourth quarter alone saw a major jump of 56% over the previous year.

PPL’s fourth-quarter 2024 reported earnings were $177 million, or $0.24 per share, compared with fourth-quarter 2023 reported earnings of $113 million, or $0.15 per share.

“PPL continued to deliver on its commitments to shareowners in 2024, achieving our targeted earnings per share and dividend growth, completing more than $3 billion in infrastructure investments to improve service to customers and delivering our targeted annual O&M savings to help keep energy affordable,” said PPL President and Chief Executive Officer Vincent Sorgi.

“Looking ahead, we continue to make significant progress in positioning PPL to create the utilities of the future — stronger, smarter, increasingly clean, and built for growth and success in a changing energy landscape. Our updated business plan reflects this strategy and will drive greater value for our customers, communities and shareowners.”

Investors are the big winners. PPL announced an approximately 6% increase in the quarterly common stock dividend.

 

2024 Highlights as Announced by PPL on Thursday.

- In delivering ongoing earnings of $1.69 per share, PPL achieved the midpoint of its original 2024 ongoing earnings forecast, or a 7% increase over the midpoint of the company’s 2023 ongoing earnings per share target.

- Throughout 2024, PPL continued to execute its utility of the future strategy, completing $3.1 billion in planned capital investments to strengthen the grid against more frequent and severe storms; to speed restoration and recovery when they occur; and to advance a safe, reliable and cleaner energy mix.

- At the same time, the company continued its strong focus on driving greater efficiencies to maintain affordability as it invests in the future. Building off the $75 million in annual O&M efficiencies delivered in 2023 (compared to the company's 2021 baseline), PPL achieved cumulative, annual O&M savings at the top end of its targeted range of $120-$130 million in 2024. The increased efficiency was driven largely by the continued deployment of smart grid technology, automation and data science.

- In other highlights, PPL completed its two-year integration of Rhode Island Energy into PPL, successfully exiting all of the remaining transition services that were established with National Grid when PPL acquired Rhode Island Energy in May 2022.