Avangrid's renewables help raise Q3 profits

Wind turbines. Source: Avangrid Renewables (www.avangridrenewables.us)

A notable contribution from the Renewables division has helped Avangrid Inc (NYSE:AGR) register a 20% year-on-year increase in consolidated US GAAP net profit for the third quarter of 2019.

The company posted on Tuesday a consolidated US GAAP net profit of USD 150 million (EUR 134.9m) for July-September 2019 compared with USD 125 million a year earlier. On an adjusted basis, non-US GAAP net profit went down by 11.5% on the year.

“The third quarter results reflected positive performance in Renewables, with improved production due to better wind resource and new assets in service,” said Avangrid CEO James P Torgerson.

More details about the company’s financial performance are available in the following table.

Figures in USD million, except for EPS	Q3 2019	Q3 2018	9-mo 2019	9-mo 2018
Operating revenues	1,487	1,546	4,729	4,813
Operating profit	239	253	787	878
Net profit attr. to Avangrid	150	125	477	476
Non-US GAAP adjusted net profit	123	139	442	511
US GAAP earnings per share	0.48	0.40	1.54	1.54
-- from Renewables	0.24	0.06	0.49	0.45
Non-US GAAP earnings per share	0.40	0.45	1.43	1.65
-- from Renewables	0.15	0.11	0.37	0.48

The company noted that in the Renewables division third-quarter earnings benefited primarily from higher mark-to-market earnings than in July-September 2018, favourable wind production and minority interest income.

The company revised upwards its prior forecast for full-year consolidated US GAAP earnings per share to a range of USD 2.36-2.46 rather than USD 2.18-2.28, the reason being changes in mark-to-market expectations. It also made amendments to projections for the different business segments to reflect various factors. Details are available below.

Figures in USD	U.S. GAAP (New)	U.S. GAAP (Old)	Non-U.S. GAAP Adjusted (New)	Non-U.S. GAAP Adjusted (Old)
Networks	1.68-1.75	1.75-1.85	1.68-1.75	1.75-1.85
Renewables	0.73-0.81	0.41-0.47	0.62-0.70	0.48-0.54
Corporate	(0.13)-(0.06)	(0.05)-0.00	(0.13)-(0.06)	(0.05)-0.00
Total	2.36-2.46	2.18-2.28	2.25-2.35	2.25-2.35