While Evergy's leadership noted difficulties presented by inflation and rising interest rates, the largest electricity provider in Kansas still topped analyst expectations with its third-quarter results.
On Friday, Evergy (NYSE: EVRG) announced Q3 adjusted earnings and adjusted earnings per share of $462 million and $2.01 — up from $452 million and $1.97 earnings per share during the same quarter in 2021.
Those results beat analyst forecasts of $1.89 per share.
In a news release, David Campbell, Evergy president and CEO, highlighted the impact of macroeconomic factors and also noted the company is updating its 2022 earnings guidance.
"We finished the third quarter with solid results despite mounting challenges impacting our customers, our company and our communities – in particular, ongoing high inflation and increasing interest rates," he said. "Given results ahead of expectations driven by operational performance and warmer than normal weather, we are narrowing our 2022 adjusted earnings guidance range to $3.53 to $3.63 per share from $3.43 to $3.63 per share. We are also increasing our quarterly dividend by 7%, consistent with our stated targets. We'll make a strong push to the finish line in 2022 and drive ongoing execution as we continue to address these macroeconomic challenges in 2023."
Evergy's non-adjusted earnings of $428 million, or $1.86 per share, came in lower than Q3 2021, which saw earnings of $449 million, or $1.95 per share.
In an earnings conference call, the company said Q3 weather-normalized retail sales growth increased by 1.7%, year over year, led by industrial demand.
On the call, Campbell noted the company explain its capital spending plans at a Dec. 13 Kansas Corporation Commission workshop. Evergy will answer questions from commissioners, KCC staff and the Citizens Utility Ratepayer Board. The event will be live-streamed on the KCC's YouTube channel.
In September, the KCC said Evergy needed "to explain a $1.2 billion increase in the company’s capital spending plan filed this year compared to projections shared when the company presented its Sustainability Transformation Plan (STP) last year."
Campbell also said the company is preparing to file its 2023 Kansas rate case in late April.
"This will be our first request for new base rates in Kansas since we formed Evergy in 2018," he said.
Campbell concluded his prepared conference call remarks by talking about the Inflation Reduction Act's impact on Evergy — specifically its energy-specific components.
"There's no question that the IRA is a very consequential piece of legislation," Campbell said. "We are assessing the key impacts of the IRA through the economic and customer affordability lenses, as the bill provides longer term certainty and visibility for significant renewable energy tax credits and emerging technologies."
Evergy expects to provide an update on renewable energy generation plans by mid-2023, when it files a revised integrated resource plan in Kansas and Missouri.