Energy News Monitoring

NextEra Energy Inc. (NEE) is one of the largest electric power companies and a leader in the renewable energy industry with consolidated revenues of approximately $17.2 billion. The company operates approximately 46,790 megawatts of net generating capacity and employs approximately 14,000 people in 33 states and Canada. With one of its principal subsidiaries, NextEra Energy Resources (NEER), the Company is the world's largest generator of renewable energy from the wind and sun. Through its subsidiaries, NextEra Energy generates clean, emission-free electricity from eight commercial nuclear power units in Florida, New Hampshire, Iowa and Wisconsin.

NEE has two principal businesses, FPL and NEER. FPL is the largest electric utility in the state of Florida and one of the largest electric utilities in the United States, with nearly five million customers. NEER is the world's largest operator of wind and solar projects with approximately 17,012 MW of total net generating capacity as per the end of 2017. NEER is active in the development, construction and operation of assets in the United States and Canada, including renewable generation facilities for battery storage projects, and invests in natural gas, natural gas liquids, oil production and pipeline infrastructure assets.

In 2017 NEER invested approximately $4.0 billion in natural gas pipelines and took ownership interests and investments located in oil and gas shale formations in the Midwest and Southern regions of the United States. Wind facilities located in 21 states in the USA and 4 provinces in Canada produced a total generating capacity of 14,255 MW as per 31st December 2017. Solar Facilities, located in 16 states in the USA and 1 province in Canada and Spain, operated a total generating capacity of 2,035 MW and fossil facilities operated natural gas with a total generating capacity of 730 MW at the end of 2017. According to the Annual Report 2017, NEE's operating revenues derived from the sale of electricity and amounted to $17.2 billion in 2017 compared to $16.2 billion in 2016, representing a growth of 6% over the previous year.

Net income attributable to NEE for 2017 was $5.38 billion, compared to $2.91 billion in 2016 and $2.75 billion in 2015, representing a growth of 84% or $2,466 million during 2017 and 6% or $0.16 billion during 2016. The improvement of net income is due to higher results at FLP, NEER and the favourable impacts of tax reform. In 2017 NextEra Energy reported net income of $5.378 billion, or $11.38 per share, compared to $2.912 billion, or $6.25 per share, in 2016, which represents year-over-year growth of 84%.

On an adjusted basis, NextEra Energy's full-year 2017 earnings were $3.165 billion, or $6.70 per share, compared to $2.884 billion, or $6.19 per share, in 2016, which represents year-over-year growth in adjusted earnings per share of 8.2%. Adjusted earnings for these periods exclude the effects of hedges, the impacts of tax reform, an impairment charge, operating results from solar projects in Spain and merger-related expenses.
NEE's reportable segments are FPL, a rate-regulated electric utility, and NEER, a competitive energy business. The net income of FPL segment for 2017, 2016 and 2015 was $1,880 million, $1,727 million and $1,648 million, respectively, representing an increase of $153 million or 9% in 2017 and $79 million or 5% in 2016.

NEER´s net income results for 2017, 2016 and 2015 were $2,963 million, $1,125 million and $1,092 million, respectively, representing an increase of $1,838 million or 263% in 2017, of $33 million or 3% in 2016, primarily due to earnings from new investments and hedge activity.

During 2017, FPL’s operating revenues increased by $1,077 million or 10% from $10,875 million in 2016 to $11,972 million in 2017, primarily due to increases in retail base revenues of $404 million, in storm-related storage revenues of $274 million, and in fuel cost recovery revenues of $262 million. During 2016, FPL´s operating revenues decreased by $756 million or 7% from $11,651 million in 2015 to $10,875 million in 2016, related to decreases in fuel cost recovery revenues of $755 million.

NEER´s operating revenues for 2017 increased by $293 million or 6% and amounted to $5,186 million in 2017 compared to $4,893 million in 2016. The increase in operating revenues in 2017 was due to higher revenues from new investments, customer supply and proprietary power and gas trading business, as well as to lower losses from hedges.

NEE´s operating net expenses for 2017 increased by $322 million or by 3% and amounted to $11,869 million in 2017 and $11,547 million in 2016. This increase was mainly attributable to the absence of the gain on the sale of natural gas generation facilities and higher fuel expenses. At the end of 2017, NEE´s total net available liquidity was $9.2 billion - $1.4 billion for FPL and $7.8 billion for NEER. NEE´s goodwill amounted to $764 million at the end of 2017 and decreased slightly by 2% compared to $780 million at the end of 2016.

[1] In 2017, FPL responded to Hurricane Irma – one of the largest, most powerful storms ever to ever Florida – by reducing customer bills through federal tax savings, which allowed each of FPL's nearly 5 million customers to save approximately $250.