Avangrid boosts H1 renewables profits

Wind turbines. Author: Ville-Matti Kaartinen. License: Creative Commons, Attribution-NoDerivs 2.0 Generic.

Avangrid Inc (NYSE:AGR) yesterday reported an improved first-half net profit of USD 100 million (EUR 87m) from its renewables division, mainly due to increased wind production and a lower effective tax rate.

The division’s profit for the second quarter (Q2) was slightly down because of negative mark-to-market, the US company explained. This was offset in part by higher wind production, although below normal, mainly as a result of the addition of the 208 MW Amazon Wind Farm US East.

Excluding mark-to-market and a minor gain on the sale of an equity method investment in 2016, adjusted net profit for Renewables was up by 7% and 26% for Q2 and H1, respectively.

Avangrid, part of Spain’s Iberdrola (BME:IBE), has struck power purchase agreements (PPAs) for 401 MW of wind since the start of 2017. It said that all of its Renewables projects currently under construction remain on track for timely completion. It added that it intends to respond later this month to the clean energy request for proposals (RfP) in Massachusetts with "multiple transmission and/or renewables projects". Avangrid is also looking to bid in the same state’s RfP for offshore wind.

The table below contains details on Avangrid’s profits across its divisions.

Net profit (loss) in USD million	H1 2017	H1 2016	Q2 2017	Q2 2016
Renewables	100	84	31	41
Networks	268	244	96	79
Corporate	5	18	10	4
Gas storage	(14)	(32)	(16)	(22)
TOTAL GAAP	359	314	120	102
TOTAL non-GAAP	369	322	143	118

Earnings per share in H1 stood at USD 1.16 and Avangrid affirmed its adjusted consolidated earnings outlook for the full year of USD 2.10-2.35 per share.

(USD 1 = EUR 0.87)

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