Avista Corporation Q4 FY2022 Earnings Call
· Earnings call transcript and AI-powered summary
Avista Corporation Q4 & Full Year 2022 Earnings Summary
- Consolidated Earnings: Full-year 2022 diluted EPS of $2.12 vs. $2.10 in 2021 (slight improvement). Q4 2022 diluted EPS of $1.05 vs. $0.71 in Q4 2021 (significant improvement).
- Avista Utilities Contribution: $1.61 per share in 2022 vs. $1.79 in 2021 (underperformed prior year due to power supply cost volatility and inflation).
- Other Businesses Contribution: $0.41 per share in 2022 vs. $0.21 in 2021 (strong improvement driven by fair value gains on non-regulated biotech investment).
Key Operational & Financial Highlights
- Avista Utilities faced extreme power and natural gas price volatility (prices 5-8x higher than normal in December) and cold weather (coldest in over 20 years), leading to $30M+ in deferred power costs and liquidity pressure from margin calls. Energy Recovery Mechanism (ERM) expense was $10.9M pre-tax in 2022 vs. $7.7M in 2021.
- Capital expenditures: Expected $475M annually through 2025 for utility infrastructure. AEL&P capex: $16M in 2023, $14M in 2024, $16M in 2025.
- Liquidity: Issued $400M long-term debt and $138M common stock in 2022. Short-term borrowing capacity increased to $700M; $517M outstanding at year-end with $183M available. Plans to issue $200M long-term debt and up to $120M common stock in 2023 to reduce borrowings.
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