Summary
Eversource Energy (ES) reported solid financial results for the fiscal year ended December 31, 2016, with net income attributable to common shareholders of $942.3 million, or $2.96 per diluted share, up from $878.5 million, or $2.76 per diluted share, in 2015. This growth was driven by strong performance in the electric transmission segment, which benefited from increased investments, and a modest increase in the natural gas distribution segment, aided by rate increases and efficiency programs. The company highlighted continued investment in its infrastructure, with projected capital expenditures of approximately $9.6 billion from 2017 through 2020 across its electric and natural gas distribution and transmission segments. These investments are aimed at enhancing reliability and capacity. Eversource also emphasized its commitment to shareholder returns, announcing a 6.7% increase in its quarterly common share dividend for 2017, reflecting its confidence in its financial stability and growth prospects. Key strategic developments include the proposed merger of NSTAR Electric and WMECO, expected to streamline operations, and ongoing investments in renewable energy projects like Bay State Wind. Despite regulatory challenges, such as FERC ROE complaints impacting transmission rates, Eversource remains focused on operational efficiency and strategic growth, positioning it for continued performance in the regulated utility sector.
Financial Highlights
48 data points| Revenue | $7.64B |
| Operating Expenses | $5.80B |
| Operating Income | $1.84B |
| Interest Expense | $400.96M |
| Net Income | $949.82M |
| EPS (Basic) | $2.97 |
| EPS (Diluted) | $2.96 |
| Shares Outstanding (Basic) | 317.65M |
| Shares Outstanding (Diluted) | 318.45M |
Key Highlights
- 1Net income attributable to common shareholders increased by 7.3% to $942.3 million in 2016, with diluted EPS growing to $2.96 from $2.76 in 2015.
- 2The electric transmission segment was a key driver of growth, with earnings increasing by $66.3 million due to higher rate base from increased investments.
- 3Eversource projects capital expenditures of approximately $9.6 billion from 2017 through 2020, focusing on electric and natural gas distribution and transmission infrastructure.
- 4The company announced a 6.7% increase in its quarterly common share dividend to $0.475 per share, payable in March 2017.
- 5A proposed merger of NSTAR Electric and WMECO is expected to streamline operations, with regulatory filings made in January 2017.
- 6Eversource is advancing strategic renewable energy initiatives, including the Bay State Wind offshore project and investments in new solar generation facilities.