Portland General Electric Company (NYSE:POR) lowered its FY20 earnings guidance, now expecting EPS of $1.30-$1.60, versus previous forecast of $2.20-$2.50.
The company revealed third-quarter realized losses of $104 million and unrealized mark-to-market Losses of $23 Million in the company's energy trading portfolio as of August 24.
Total third-quarter Losses in the portfolio are estimated to be up to $155 Million.
PGE personnel entered into a number of energy trades during 2020, with increasing volume accumulating late in the second quarter and into the third quarter, resulting in significant exposure to the Company.
In August, this portion of PGE's energy portfolio experienced significant losses as wholesale electricity prices increased substantially at various market hubs due to extreme weather conditions, constraints to regional transmission facilities, and changes in power supply in the West.
During this time period, the California Independent System Operator (CAISO) declared a Stage 3 Electrical Emergency and ordered the first rolling blackouts in the state of California since 2001.
As a result of the convergence of these conditions, the Company's energy portfolio, as of August 24, has experienced realized losses of $104 million and unrealized, mark-to-market losses of $23 million. Total third quarter losses in the portfolio are estimated to be up to $155 million subject to market conditions – although the ultimate amount of losses could exceed that amount.
Shares dumped $4.71, or 11.2%, to $37.25.
