Strong winds, new capacity boost Avangrid's Q1 profit

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

A notable contribution from the Renewables division has helped Avangrid Inc (NYSE:AGR) post a USD-240-million (EUR 221.2m) GAAP net profit for the first quarter of 2020, up from USD 217 million a year back.

The sustainable energy company announced its financial results for January-March in a press release on Tuesday. Its CEO James P Torgerson explained that the growth in Renewables reflects the increased wind power output and the commissioning of 831 MW of new capacity in 2019. Regardless of the solid quarter, he pointed out that the company has withdrawn its long-term forecast for 2018-2022 in view of the critical business environment and the postponement of a previously planned Investor Day.

On an adjusted basis, the company’s first-quarter net profit came at USD 236 million, up from USD 219 million a year back. This result excludes mark-to-market adjustments in Renewables, accelerated depreciation from the repowering of wind farms and restructuring charges.

More details about Avangrid’s Q1 performance are available in the table below. The company will pay a dividend of USD 0.44 per share on its common stock on July 1. Shareholders of record on June 2, 2020, will be entitled to the quarterly distribution.

Figures in USD million, except for EPS	Q1 2020	Q1 2019
Operating revenues	1,789	1,842
Operating profit	327	341
Net profit attr. to Avangrid	240	217
-- from Renewables	52	4
Non-US GAAP adjusted net profit	236	219
-- from Renewables	46	5
US GAAP earnings per share	0.78	0.70
-- from Renewables	0.17	0.01
Non-US GAAP earnings per share	0.76	0.71
-- from Renewables	0.15	0.02

Looking ahead, Avangrid reiterated its full-year consolidated US GAAP earnings per share to a range of USD 2.06-2.26, while on a non-GAAP basis they are seen at USD 2.17-2.37 per share. The outlook reflects certain assumptions and the effects of the COVID-19 coronavirus crisis.

(USD 1.0 = EUR 0.922)

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