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NEXTERA Energy Inc. 2019

Another terrific year for NextEra Energy with adjusted EPS of $8.37, up 8.7% from 2018

NextEra Energy Inc. (NEE) was incorporated in 1984 and is one of the largest electric power and energy infrastructure companies in North America and a leader in the renewable energy industry. 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 U.S. NEER is the world's largest generator of renewable energy from the wind and sun.

NEER develops, constructs and operates long-term contracted assets throughout the U.S. and Canada, including renewable generation facilities, natural gas pipelines, electric transmission facilities and battery storage projects.

In January 2019, NEE completed the acquisition of Gulf Power, an electric utility engaged in the generation, transmission, distribution and sale of electric energy in northwest Florida. In 2019 NEE had four segments for financial reporting purposes, which are FPL, Gulf Power, NEER and Corporate & Other.

For the five years ending December 31st 2019, NEE delivered a total shareholder return of approximately 161.5%. Over the past 15 years, the Company has delivered annual growth in adjusted EPS of nearly 8.5%, which is the highest among all top 10 power companies In 2019 NEE delivered a total shareholder return of approximately 43%.

According to the Annual Report 2019, NEE's operating revenues derived from the sale of electricity and amounted to $19.2 billion in 2019, compared to $16.7 billion in 2018 and $17.2 billion in 2017. Operating revenues for 2019 increased by $655 million or 11.5% due primarily to favourable unrealized mark-to-market activity of $295 million from non-qualifying hedge revenues, from new investments of $232 million higher revenues of $198 million from the customer supply and proprietary power and gas trading business and higher revenues of $122 million from the gas infrastructure business.

During 2019, FPL's operating revenues increased by $330 million from $5,135 million in 2018 to $5,755 million in 2019. The increase is primarily related to higher retail base revenues of $323 million, higher revenues of $60 million as a result of the acquisition of the entity that operates Florida City Gas in July 2018 and other increases associated with various cost recovery clause revenues, partly offset by $78 million in lower storm-related revenues.

NEER´s operating revenues decreased by 10% from $7,189 million in 2018 to $6,505 million in 2019.

Net income attributable to NEE for 2019 was lower than 2018 by $2,869 million or $6.12 per share, and decreased from $6.64 billion in 2018 to $3.77 billion in 2019, due to lower results at NEER and Corporate & Other, partly offset by higher results at FPL and the addition of results from Gulf Power.

FPL's increased in net income by $163 million from $2.17 billion in 2018 to $2.33 billion in 2019, primarily driven by continued investments in plants in service and other property. Such investments grew FPL's average retail rate base by approximately $3.3 billion in 2019 and reflect, among other things, solar generation additions, ongoing transmission and distribution additions and investments in FPL's generation infrastructure, including the Okeechobee Clean Energy Center.

NEER's results in net income decreased from $4.7 billion in 2018 to $1.8 billion in 2019, primarily reflecting the absence of the 2018 NEP investment gains upon deconsolidation. In June 2019, subsidiaries within the NEER segment sold ownership interests in three wind generation facilities and three solar generation facilities, with a total net generating capacity of approximately 611 MW to a subsidiary of NEP.

However, in 2019 NEER added approximately 1,125 MW of new wind generating capacity, 1,091 MW of wind repowering generating capacity and 512 MW of solar generating capacity in the U.S. and increased its backlog of contracted renewable development projects.

During 2019, Gulf Power contributed $180 million of net income attributable to NEE. Gulf Power's operating revenues were approximately $1,487 million and operating expenses totalled $1,216 million for 2019.

Operating expenses
net for 2019 increased by $19 million from $12.45 billion in 2018 to $13.85 billion in 2019 primarily due to higher fuel and depreciation expense of $150 million, related primarily to the customer supply and proprietary power and gas trading and gas infrastructure businesses, higher operating expenses associated with new investments of approximately $137 million as well as an impairment charge of approximately $72 million in 2019 related to the decision to no longer move forward with the construction of a wind facility.

On December 31st 2019, NEE's total net available liquidity was approximately $8.5 billion, compared to $7.0 billion in 2018, representing an increase of 21% over the previous year.

NEE´s goodwill amounted to $4,204 million in 2019, compared to $891 million at the end of 2018 and $764 million at the end of 2017, representing an increased by 474% from 2018 to 2019. The increase was driven by the acquisition of Gulf Power in 2019.