PG&E Spent $127 Million on Bankruptcy Costs, Fees in Two Months
(Bloomberg) -- PG&E Corp. spent $127 million on financing, legal and other fees in its first two months in bankruptcy.
The California power giant expects Chapter 11 costs for this year to range from $360 million to $430 million, according to a slide presentation posted online Thursday. The costs for the first quarter included $114 million in financing and $24 million in “legal and other costs,” offset by $11 million in interest income.
The reported first-quarter profit was less than half the figure from a year earlier -- net income was $136 million, or 25 cents a share, down from $442 million.
Key Insights
- The results are the first to encompass PG&E's performance since filing for bankruptcy on Jan. 29. The company faces wildfire liabilities it estimates could exceed $30 billion.
- The earnings results come just as Bill Johnson, the former head of the Tennessee Valley Authority, takes the helm as PG&E's new chief executive officer and after the company replaced most of its board.
- In February, the utility said it will probably be found to have caused the Camp Fire, the deadliest wildfire in California's history with 85 deaths. PG&E took a $10.5 billion charge in connection with the blaze, which also destroyed the town of Paradise.
Market Reaction
- PG&E rose 20 cents to $21.90 in pre-market trading
Get More
- Read the earnings report.
To contact the reporter on this story: Mark Chediak in San Francisco at mchediak@bloomberg.net
To contact the editors responsible for this story: Lynn Doan at ldoan6@bloomberg.net, Reg Gale, Will Wade
©2019 Bloomberg L.P.
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