Public Service Enterprise Group Inc (PEG) Reports Strong 2023 Results with Net Income More Than ...
Net Income: Reported $2.56 billion for FY2023, a significant increase from $1.03 billion in FY2022.
Non-GAAP Operating Earnings: Achieved $3.48 per share, consistent with $3.47 per share in FY2022.
Dividend: Announced a $0.12 increase to the 2024 indicative annual common dividend rate to $2.40 per share.
Capital Investment: Completed its largest ever capital investment plan in a single year, totaling $3.7 billion.
Future Outlook: Updated five-year regulated capital spending plan to $18 billion to $21 billion, supporting a 6% to 7.5% compound annual growth in rate base.
On February 26, 2024, Public Service Enterprise Group Inc (NYSE:PEG) released its 8-K filing, announcing its financial results for the full year and fourth quarter of 2023. The company reported a net income of $2.56 billion, or $5.13 per share, for the full year, a substantial increase from the $1.03 billion, or $2.06 per share, reported in the previous year. The non-GAAP operating earnings were $1.74 billion, or $3.48 per share, mirroring the performance of the prior year.
Public Service Enterprise Group is a predominantly regulated infrastructure company focused on a clean energy future. PSEG, the holding company for a regulated utility (PSE&G) and other nonregulated businesses, provides regulated gas and electricity delivery services in New Jersey to a combined 4.2 million customers and operates the Long Island Power Authority system. In 2022, PSEG sold its gas and oil power plants in the mid-Atlantic, New York, and the Northeast, marking a strategic shift towards clean energy projects.
The company's performance in 2023 was marked by the completion of its largest ever capital investment plan in a single year, totaling $3.7 billion. This investment was focused on modernizing system infrastructure, maintaining reliability and resiliency, and expanding energy efficiency offerings. PSEG's chair, president, and CEO, Ralph LaRossa, highlighted the company's 19th consecutive year of delivering results that met or exceeded guidance.
Looking ahead, PSEG has updated its five-year regulated capital spending plan to $18 billion to $21 billion, which supports a compound annual growth in rate base of 6% to 7.5% and non-GAAP Operating Earnings of 5% to 7% over the 2024 to 2028 period. Additionally, PSE&G filed its comprehensive electric and gas base rate case with the New Jersey Board of Public Utilities (BPU), seeking to recover over $3 billion in capital investments made since the last rate case in 2018.
For 2024, PSEG is reaffirming its non-GAAP Operating Earnings guidance range of $3.60 to $3.70 per share and has increased its indicative annual common dividend rate to $2.40 per share, extending its track record of providing dividend income to investors for 117 consecutive years.
Segment Performance
Public Service Electric and Gas (PSE&G) reported a net income of $1.51 billion for FY2023, slightly lower than the $1.56 billion in FY2022. The results for the fourth quarter were influenced by growth in incremental investments in Transmission and Gas Distribution, offset by declines in pension income, higher depreciation, amortization, and interest expenses.
PSEG Power & Other reported a net income of $1.05 billion for FY2023, a significant turnaround from the loss of $534 million in FY2022. The improvement was attributed to better energy margins, despite a reduction in capacity revenues and lower pension income.
The company's solid financial performance and strategic investments in infrastructure and clean energy projects position it well for continued growth and stability, making PSEG an attractive option for value investors interested in the Utilities - Regulated industry.
For more detailed information on PSEG's financial performance, including income statements, balance sheets, and cash flow statements, investors are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from Public Service Enterprise Group Inc for further details.
This article first appeared on GuruFocus.
