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POR NYSE· Portland General Electric Company
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POR NYSE· Portland General Electric Company
Earnings report Q4 2023

Portland General Electric Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, Portland General Electric (PGE) reported total revenues of $2.92 billion, representing a significant increase compared to $2.65 billion in the previous year. The company's revenue can be further broken down into different segments.

  • Retail revenues, which include residential, commercial, industrial, and direct access customers, amounted to $2.44 billion, showing a notable growth from $2.22 billion in the previous year. This increase can be attributed to higher customer usage patterns and price changes, as well as the record-breaking demand experienced in 2023.

  • Wholesale revenues, which include physical electricity commodity contract derivative settlements, reached $418 million in the latest quarter, compared to $363 million in the previous year. This growth can be attributed to improved power availability and favorable pricing conditions.

  • Other operating revenues, which include miscellaneous sources of income, remained relatively stable at $58 million, $61 million, and $63 million for the years 2023, 2022, and 2021, respectively.

Strengths

Portland General Electric demonstrated strong revenue growth in the latest quarter, driven by increased retail revenues and improved wholesale revenues. The company's ability to meet the record-breaking demand in 2023 highlights its operational efficiency and effective supply chain management. PGE's measures to enhance supply chain availability and mitigate cost increases through long-term agreements and supplier engagement have also contributed to its financial strength.

Challenges

While PGE experienced overall revenue growth, it is worth noting that alternative revenue programs, net of amortization, showed a slight decline in the latest quarter, amounting to $11 million. This decrease may pose a challenge for the company in terms of diversifying its revenue streams and maximizing alternative revenue opportunities.

Noteworthy

The latest quarter saw PGE achieve a new all-time high in demand, surpassing the previous record set in 2021. This exceptional demand, coupled with favorable customer usage patterns and price changes, contributed significantly to the company's revenue growth. PGE's proactive measures to secure critical materials, engage with suppliers, and expand its supply base have also played a noteworthy role in supporting its financial performance.

Summary

Portland General Electric reported strong revenue growth in the latest quarter, driven by increased retail revenues and improved wholesale revenues. The company's ability to meet record-breaking demand, coupled with effective supply chain management, highlights its operational efficiency. While alternative revenue programs experienced a slight decline, PGE's proactive measures to enhance supply chain availability and mitigate cost increases have positioned it well for future growth. Overall, PGE's financial performance in the latest quarter reflects its strength in the market and its ability to adapt to changing customer demands.

Source documents

Form 10-K  filed on Feb 20, 2024
123 pages scanned

Reference data

Company financials Q4 revenue 725M
Analyst estimates Q4 EPS beat by 23.90%
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