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PG&E Stock Tanks As Shareholders Expect Raw Deal From Rival Restructuring Plans

Pacific Gas and Electric Company (PG&E) is an investor-owned utility, which provides electricity and natural gas in Northern California. The stock has tanked by close to 30% over the last week, falling from about $11 last Wednesday, to about $7.70 currently. PG&E filed for Chapter 11 bankruptcy protection in January, as it faces over $30 billion in potential liability costs associated with the deadly 2018 wildfires in Northern California. The company has been looking to reorganize itself, and a judge overseeing the bankruptcy proceedings recently said that alternative restructuring plans from bondholders and wildfire victims – which are likely to be less favorable to equity holders – will also be considered, beside the company’s own plan. This has prompted a further sell-off in the stock, which has now lost more than 80% of its value over the last year. Below, we take a look at the company’s financial performance over the last few years and its outlook.

View our interactive dashboard analysis on PG&E Sees Big Sell Off As Shareholders Expect Raw Deal From Rival Restructuring Plans

How does PG&E’s Revenue Growth in 2018 compare with that in prior periods and what’s the forecast?

 

Total Revenues for PG&E slightly decreased from $17.1 Bil in 2017 to $16.8 Bil in 2018; a decrease of 2.19%.

This compares with Total Revenues growth of:

  • -1.50% in 2015 compared to 2014
  • 4.95% in 2016 compared to 2015
  • -3.01% in 2017 compared to 2016

We expect Total Revenue growth to stand at 4.4% this year.

How does PG&E’s Total Expense in 2018 compare with that in prior periods and what’s the forecast?

Total Expense for PG&E substantially increased from $15.0 Bil in 2017 to $26.9 Bil in 2018; an increase of 79.7%, on account of wildfire-related claims, net of insurance recoveries, which stood at about $11 billion.

This compares with Total Expense growth of:

  • 4.43% in 2015 compared to 2014
  • 1.45% in 2016 compared to 2015
  • -7.65% in 2017 compared to 2016

We expect Total Expenses to decline to $15 billion this year.

 

How does PG&E’s EBT in 2018 compare with that in prior periods and what’s the forecast?

EBT for PG&E decreased dramatically by -567% from $2.17 Bil in 2017 to -$10.1 Bil in 2018. We expect EBT to decrease 1.64% to -$10.3 Bil in 2019.

 

How do PG&E’s Net Income and EPS in 2018 compare with that in prior periods and what’s the forecast?

Details about our estimates for PG&E’s Net Income and EPS are available in our interactive dashboard analysis.

 

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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