ALLENTOWN, Pa., June 24, 2016 /PRNewswire/ -- PPL
Corporation on Friday (6/24) said the results of the June 23 referendum on Britain exiting the European Union are not
expected to significantly impact its operations in the United Kingdom and management will continue to
monitor developments in the U.K. closely.
"The extent and duration of any potential decline in the value
of the British pound sterling to the U.S. dollar is unknown at this
time. A long-term reduction in the value of the pound as a result
of the U.K. referendum could require us to reassess our earnings
growth rate," said William H.
Spence, PPL's chairman, president and Chief Executive
Officer.
"We have implemented an effective hedging program that
substantially protects us against fluctuations in foreign currency
exchange rates through 2017," Spence said. "In addition, any
negative exposure to long-term changes in foreign currency exchange
rates could be partially offset by other factors, including
increases to U.K. inflation and interest rates that may occur as a
result of actions taken in response to the referendum vote."
The company, which owns four high-performing utilities that
serve almost 8 million customers in the U.K., reaffirmed its 2016
reported earnings forecast of $2.29 to
$2.49 per share and earnings from ongoing operations
forecast of $2.25 to $2.45 per share.
In addition, PPL said it is not currently changing its previously
announced projection of 5 to 6 percent compound annual earnings
growth through 2018. This anticipated growth reflects projected
earnings compared to 2014 earnings from ongoing operations
(adjusted) of $2.03 per share.
As previously reported for the quarter ended March 31, 2016, PPL is 93 percent hedged for the
remainder of 2016 budgeted earnings at an average rate of
$1.54 per pound, 89 percent hedged
for 2017 at a rate of $1.58 per
pound, and 41 percent hedged for 2018 at a rate of $1.56 per pound.
Headquartered in Allentown,
Pa., PPL Corporation (NYSE: PPL) is one of the largest
companies in the U.S. utility sector. PPL's seven high-performing,
award-winning utilities serve 10 million customers in the U.S. and
United Kingdom. The company and
its 13,000 employees are dedicated to providing exceptional
customer service and reliability and delivering superior value for
shareowners. To learn more, visit www.pplweb.com.
Note to Editors: Visit our media website at
www.pplnewsroom.com for additional news
and background about PPL Corporation.
Contacts:
For news media: Ryan Hill,
610-774-5997
For financial analysts: Lisa Pammer,
610-774-3316
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SOURCE PPL Corporation