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Avangrid's Q1 renewables profit slumps amid lower winds

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

April 25 (Renewables Now) - Avangrid Inc (NYSE:AGR) saw the first-quarter 2019 net profit from its renewables division drop to USD 4 million (EUR 3.6m) from USD 50 million a year back, hit by lower-than-expected wind resources.

The division’s profit in the three months was also negatively impacted by the extreme winter weather, the expiration of production tax credits and a decline in earnings from the sale of renewable energy credits. Avangrid, part of Spain’s Iberdrola (BME:IBE), on Wednesday posted earnings per share (EPS) of USD 0.01 for its Renewables division, down from USD 0.16 from the previous year, while on an adjusted basis, the result decreased to USD 0.02 from USD 0.15.

The inferior performance of the renewables business was partially offset by favourable earnings from thermal and trading but Avangrid still posted a decline in total net profit for the three months. The table below contains details about the company’s profits across its divisions.

GAAP Net profit (loss) in USD million Q1 2019 Q1 2018
Renewables 4 50
Networks 201 200
Corporate 13 (5)
Gas storage - (1)
Total GAAP 217 244
Total non-GAAP /adjusted/ 219 243

Looking ahead, Avangrid reiterated its consolidated earnings outlook for 2019, expecting EPS of USD 2.18-2.33 and USD 2.25-2.40 on an adjusted basis. For the renewables division, however, it lowered its guidance to reflect the first-quarter wind production. The following table shows the revised figures for the renewables division.

Amounts in USD NEW (Apr 24) OLD (Feb 26)
EPS GAAP 0.41 - 0.49 0.45 - 0.53
EPS non-GAAP /adjusted/ 0.48 - 0.56 0.52 - 0.60

(USD 1.0 = EUR 0.897)

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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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