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Avangrid's 2019 profit grows with help from renewables unit

The 208-MW Wind Farm US East. Source: Iberdrola (www.iberdrola.com).

February 26 (Renewables Now) - The sale of renewable energy assets and certain favourable developments helped Avangrid Inc (NYSE:AGR) register a 17.6% year-on-year rise in its consolidated net profit for 2019.

The sustainable energy company said on Tuesday that its US GAAP net profit for the past year stood at USD 700 million (EUR 643.8m), up from USD 595 million a year back. The Renewables result increased due to the divestment of certain assets, higher mark-to-market earnings, efficiencies and favourable thermal and trading activities. These positive effects were partly offset by a drop in production due to low winds, expiring production tax credits and unfavourable pricing effects.

“We are disappointed with our financial results for what was ultimately a challenging year,” said CEO James P Torgerson, adding that delivering growth in Networks and Renewables will be a major focus in 2020.

More details about the company’s financial performance are presented in the table below.

Figures in USD million, except for EPS Q4 2019 Q4 2018 2019 2018
Operating revenues 1,609 1,665 6,338 6,478
Operating profit 216 249 1,003 1,127
Net profit attr. to Avangrid 223 119 700 595
-- from Renewables 102 7 254 148
Non-US GAAP adjusted net profit 230 173 673 684
-- from Renewables 108 37 223 185
US GAAP earnings per share 0.72 0.38 2.26 1.92
-- from Renewables 0.33 0.02 0.82 0.48
Non-US GAAP earnings per share 0.74 0.56 2.17 2.21
-- from Renewables 0.35 0.12 0.72 0.6

The company put on stream 831 MW of renewable power plants in 2019, of which 605 MW were brought online in the final quarter. It sold 50% stakes in its 65.1-MW Dry Lake Wind Farm II and the 20-MW Copper Crossing Solar parks, both located in Arizona, for a total consideration of USD 112 million.

Avangrid guided for US GAAP earnings per share (EPS) of between USD 2.06 and USD 2.26 for 2020 and a non-US GAAP result of USD 2.17-2.37 per share. The following table contains details by segment.

EPS (loss) in USD US GAAP Non-US GAAP (adjusted)
Networks 1.69 - 1.94 1.70 - 1.95
Renewables 0.35 - 0.55 0.45 - 0.65
Corporate (0.19) - (0.05) (0.19) - (0.05)
Total 2.06 - 2.26  2.17 - 2.37

(USD 1.0 = EUR 0.920)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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