Saturday, September 25, 2021

PG&E Corporation Reports Second Quarter 2021 Financial Results | Deal

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GAAP results include non-core items that management does not consider representative of ongoing earnings, which totaled $178 million after tax, or $0.08 per share, for the quarter. These results were primarily driven by costs related to the amortization of wildfire insurance fund contributions under Assembly Bill (AB) 1054, investigation remedies, PG&E Corporation’s and Pacific Gas and Electric Company’s (Utility) reorganization cases under Chapter 11 of the U.S. Bankruptcy Code (Chapter 11), 2019-2020 wildfire-related costs, and prior period net regulatory recoveries. PG&E Corporation (NYSE: PCG) recorded second-quarter 2021 income available for common shareholders of $397 million, or $0.18 per share, as reported in accordance with generally accepted accounting principles (GAAP). This compares with losses attributable to common shareholders of $1,972 million, or $3.73 per share, for the second quarter of 2020.

Non-GAAP Core Earnings

“Every day, we are doing the right work to reduce risk, improve our operations, and strengthen our financial health,” said Patti Poppe, CEO of PG&E Corporation. “Our five-year roadmap includes key system enhancements, safety improvements, and customer-oriented solutions that support PG&E’s triple-bottom-line focus on people, the planet, and California’s prosperity.”

PG&E Corporation’s non-GAAP core earnings, which exclude non-core items, were $575 million, or $0.27 per share, in the second quarter of 2021, compared with $542 million, or $1.03 per share, during the same period in 2020.

The decrease in quarter-over-quarter non-GAAP core earnings per share was primarily driven by the increase in shares outstanding, unrecoverable interest expense, the timing of taxes, and the timing of nuclear refueling outages, partially offset by the growth in rate base earnings and wildfire mitigation costs above authorized.

PG&E Corporation uses “non-GAAP core earnings,” which is a non-GAAP financial measure, in order to provide a measure that allows investors to compare the underlying financial performance of the business from one period to another, exclusive of non-core items. See the accompanying tables for a reconciliation of non-GAAP core earnings to consolidated earnings available for common shareholders.

2021 Guidance

On a non-GAAP basis, the guidance range for projected 2021 core earnings is reaffirmed at $0.95 to $1.05 per share. Factors driving non-GAAP core earnings include net below the line and spend above authorized of up to $100 million after tax and unrecoverable interest expense of $300 million to $325 million after tax.

PG&E Corporation is adjusting 2021 GAAP earnings guidance to a range of $0.01 to $0.15 per share, which includes non-core items. PG&E Corporation is adjusting 2021 non-core items guidance to a range of $1.9 billion to $2.0 billion after tax, reflecting bankruptcy and legal costs, the amortization of wildfire insurance fund contributions, 2019-2020 wildfire-related costs, investigation remedies, and prior period net regulatory recoveries, partially offset by the rate neutral securitization inception impact.

Guidance is based on various assumptions and forecasts, including those relating to authorized revenues, future expenses, capital expenditures, rate base, equity issuances, rate neutral securitization, and certain other factors.

Supplemental Financial Information

In addition to the financial information accompanying this release, presentation slides have been furnished to the Securities and Exchange Commission (SEC) and are available on PG&E Corporation’s website at:

Earnings Conference Call

PG&E Corporation will also hold a conference call on July 29, 2021, at 11:00 a.m. Eastern Time (8:00 a.m. Pacific Time) to discuss its second quarter 2021 results. The public can access the conference call through a simultaneous webcast. The link is provided below and will also be available from the PG&E Corporation website.

What: Second Quarter 2021 Earnings Call


When: Thursday, July 29, 2021 at 11:00 a.m. Eastern Time

Alternatively, a toll-free replay of the conference call may be accessed shortly after the live call through August 5, 2021, by dialing (800) 585-8367. International callers may dial (416) 621-4642. For both domestic and international callers, the confirmation code 8244484 will be required to access the replay.

A replay of the conference call will be archived through August 5, 2021 at

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