PSEG reported a net income of $1.06 per share for Q1 2024, compared to $2.58 per share in Q1 2023.
Non-GAAP operating earnings were $1.31 per share in Q1 2024, down from $1.39 per share in Q1 2023.
The decrease in GAAP earnings per share YOY reflects the absence of mark-to-market gains that benefited the first quarter of 2023.
Continued rate base growth from investments focused on infrastructure replacement.
Future Guidance
PSEG is reaffirming its non-GAAP operating earnings guidance of $3.60 to $3.70 per share for the full year of 2024.
The company aims to grow PSEG’s non-GAAP operating earnings by 5% to 7% through 2028, fueled by investments in energy infrastructure and efficiency programs.
PSEG plans to execute a 5-year $19 billion to $22.5 billion capital plan through 2028, with the regulated portion being $18 billion to $21 billion, focusing on infrastructure replacement and clean energy initiatives.
Trends, Market Conditions, Sentiment
There is a strong focus on investing in energy infrastructure and efficiency programs to support the electrification of transportation, homes, and workplaces while also reducing greenhouse gas emissions.
Investments in the nuclear segment, such as the production tax credit that went into effect on January 1, 2024, are seen as important contributors to the predictability of PSEG’s results.
The rate base growth is driven by investments in infrastructure replacement, partially offset by higher investment-related expenses.
There are several regulatory actions and market developments, such as pending distribution rate cases and investments in smart meters and clean energy future EE programs, which are pivotal to the company’s strategy.
Interest in developing direct power sales operations, particularly to data centers, indicating a potential growth area and alignment with New Jersey’s policy goals for economic development and carbon-free energy provisioning.
Notable Quotes
”PSEG’s financial results for the first quarter are in line with our full year expectations for 2024 and we are reaffirming our non-GAAP operating earnings guidance of $3.60 to $3.70 per share."
"This will be accomplished by investing in energy infrastructure and energy efficiency programs, which support greater electrification of transportation, homes and workplaces while also reducing greenhouse gas emissions."
"PSEG reported net income of $1.06 per share compared to $2.58 per share in 2023, which reflects the absence of mark-to-market gains that benefited first quarter GAAP earnings in 2023."
"We are also reaffirming our forecast of long-term 5% to 7% compound annual growth in non-GAAP operating earnings through 2028, supported by our capital investment programs and the new nuclear PTC."
"Our New Jersey nuclear units could provide access to a highly reliable, carbon-free source of baseload power and infrastructure consideration and is increasingly mission-critical for the large data center developers and hyperscalers.”
