PPL Reports Decrease in Q3 Net Income
US-based power utility PPL has reported a net income of $203 million, or $0.54 per share, for the third quarter of 2008, compared to $322 million, or $0.84 per share, for the same period of 2007.
For the first nine months of 2008, PPL’s earnings were $1.73 per share, compared with $2.25 per share in the same period of 2007.
Third-quarter earnings from ongoing operations also declined, to $0.45 per share, compared with $0.72 per share in 2007. For the first nine months of 2008, earnings from ongoing operations were $1.56 per share, compared with $2 per share in the same period of 2007.
James Miller, PPL’s chairman, president and CEO, said that PPL continues to forecast strong earnings growth for 2010 with a new forecast range of $3.60 to $4.20 per share. This new range is down from the prior 2010 forecast range of $4 to $4.60 per share.
Mr Miller said: “During the third quarter of 2008, we saw unprecedented levels of volatility in the energy commodities market, a rapid decline in the capital devoted to energy markets by a range of market participants and a substantial drop in wholesale electricity prices.
“As a consequence, we experienced unrealized losses in certain of our energy positions that, along with extended outages at two of our large coal-fired plants in Pennsylvania, resulted in third quarter energy margins that are much lower than 2007.”