NextEra Energy enjoys busy Q4 but posts lower 2019 net profit

The Tuscola Bay II Wind Energy Center. Photo by: NextEra Energy Resources (www.nexteraenergyresources.com)

January 27 (Renewables Now) - US clean energy company NextEra Energy Inc (NYSE:NEE) more than doubled its fourth-quarter (Q4) attributable net profit on a GAAP basis to USD 975 million (EUR 884.1m) but still faced a 43% year-on-year drop in earnings for the full 2019.

The company lifted its fourth-quarter attributable net profit from USD 422 million in 2018, while on an adjusted basis, excluding non-qualifying hedges, tax reform impacts, unrealised gains and losses on equity securities and others, it saw its bottom line decline to USD 706 million from USD 718 million. For the full 2019, NextEra booked an attributable net profit of USD 3.77 billion, down from USD 6.64 billion, in spite of an increase in operating revenues.

"NextEra Energy's performance in 2019 was strong both financially and operationally with outstanding execution on all of our initiatives," said chairman and CEO Jim Robo. The following table contains more details on the company’s financial performance.

Amounts in USD Q4 2019 Q4 2018 2019 2018
Operating revenues 4.59bn 4.39bn 19.2bn 16.73bn
GAAP net profit 975m 422m 3.77bn 6.64bn
GAAP EPS 1.99 0.88 7.76 13.88
Adjusted net profit 706 718m 4.06bn 3.67bn

NextEra Energy operates through its three business units -- rate-regulated electric utilities Florida Power & Light Company (FPL) and Gulf Power Company and renewable energy producer NextEra Energy Resources LLC. The table below shows more details about FPL's results in the reporting periods.

Amounts in USD Q4 2019 Q4 2018 2019 2018
GAAP net profit 400m 407m 2.33bn 2.17bn
GAAP EPS 0.81 0.85 4.81 4.55

The improved performance of FPL for the full year stems from the continued investment in the business, NextEra said. The past year marked the commissioning of its Okeechobee Clean Energy Center, a 1,600-MW natural gas-fired facility, and around 300 MW of solar parks. Its solar portfolio will further expand with an additional 750 MW of photovoltaic (PV) plants that will go live in early 2020.

Details on Gulf Power Company’s results are presented below:

Amounts in USD Q4 2019 2019
GAAP net profit 23m 180m
GAAP EPS 0.05 0.37
Adjusted net profit 26 200

The integration of Gulf Power within NextEra is still ongoing and progresses well, with major capital investments and capital reduction plans advancing. NextEra purchased the business from Southern Co (NYSE:SO) last January.

The table below gives more details on NextEra Energy Resources' financial performance.

Amounts in USD Q4 2019 Q4 2018 2019 2018
GAAP net profit 433m 264m 1.81bn 4.7bn
GAAP EPS 0.88 0.55 3.72 9.82
Adjusted net profit 326m 323m 1.7bn 1.5bn
Adjusted EPS 0.66 0.67 3.49 3.14

NextEra Energy Resources switched online 2,700 MW of renewables capacity in 2019, including wind repowerings, and expanded its backlog with over 5,800 MW. In the last quarter alone, it added 1,609 MW of projects to its backlog, of which 500 MW were wind, 770 MW solar and 340 MW battery storage.

NextEra Energy guided for adjusted EPS of USD 8.70-9.20 in 2020 and confirmed its forecast for adjusted EPS to increase at a compound annual growth rate of 6%-8% through 2021, off the 2018 adjusted EPS of USD 7.70. It expects its Florida acquisitions to add USD 0.15 and USD 0.20 to that result in 2020 and 2021, respectively.

For 2022, NextEra Energy anticipates adjusted EPS to rise by 6%-8%, ranging between USD 10 and USD 10.75.

(USD 1.0 = EUR 0.907)

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