NextEra Energy boosts 2018 profit 23.4% Y/Y, sales drop

Solar park. Photo by: NextEra Energy Resources (www.nexteraenergyresources.com).

January 28 (Renewables Now) - US clean energy company NextEra Energy Inc (NYSE:NEE) on Friday said its GAAP attributable net profit in 2018 improved to USD 6.64 billion (EUR 5.8bn) from USD 5.38 billion a year back and announced management changes for its power generation subsidiary NextEra Energy Resources.

Attributable earnings per share (EPS), correspondingly, increased to USD 13.88 from USD 11.39 in 2017, while on an adjusted basis, which excludes non-qualifying hedges, impairment charges and others, they came at USD 7.70, up from USD 6.70 apiece. NextEra’s adjusted (non-GAAP) net result of 2018 was USD 3.67 billion.

At USD 16.73 billion, total operating revenues were down from USD 17.17 billion in the previous year.

Jim Robo, chairman and CEO of NextEra Energy, commented that the company has successfully executed its operational and financial programmes in 2018 that enabled it to achieve an almost 15%-rise in adjusted EPS. “I continue to believe that we have one of the best organic opportunity sets and execution track records in the industry,” he added, in line with expectations for a compound annual growth rate for adjusted EPS at or near the top end of a 6%-8% forecast through 2021, off a base of USD 7.70.

NextEra Energy operates through rate-regulated electric utility Florida Power & Light Company (FPL) and renewable energy producer NextEra Energy Resources LLC.

The table below shows FPL's fourth-quarter (Q4) and 2018 results.

Amounts in USD Q4 2018 Q4 2017 2018 2017
GAAP net profit 407m 344m 2.17bn 1.88bn
GAAP EPS 0.85 0.73 4.55 3.98
Non-GAAP net profit 407m 394m 2.17bn 1.93bn
Non-GAAP EPS 0.85 0.84 4.55 4.09

During the past year, FPL continued work on its solar expansion initiatives and brought online eight 74.5-MW photovoltaic (PV) parks and switched on the first two battery storage facilities under a 50-MW pilot programme. Its plans for 2019 include “ unprecedented investments” in advanced and innovative battery storage technology and the commissioning of 300 MW solar power capacity.

Details on NextEra Energy Resources' performance can be seen in the table below.

Amounts in USD Q4 2018 Q4 2017 2018 2017
GAAP net profit 263m 1.90bn 4.66bn 2.96bn
GAAP EPS 0.55 4 9.75 6.27
Non-GAAP net profit 317m 229m 1.46bn 1.23bn
Non-GAAP EPS 0.66 0.48 3.05 2.60

The unit expanded its renewables backlog in 2018 by 6,500 MW of storage and repowering projects and commissioned almost 2,700 MW of wind and solar schemes, including 900 MW of repowering projects.

For 2019, NextEra guided for adjusted EPS of between USD 8 and USD 8.50 and reiterated its outlook for adjusted EPS of USD 8.70-9.20 in 2020 and USD 9.40-9.95 in 2021. Meanwhile, it announced that Armando Pimentel, the president and CEO of NextEra Energy Resources, will retire on March 1, 2019. His successor will be John Ketchum, who currently is the company’s executive vice president and CFO.

(USD 1.0 = 0.877)

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