01—Abstract
Summary
Summary of the 10-K filed February 14, 2024. Cited figures are marked; the original filing is the authoritative source.
Eversource Energy (ES) reported a net loss of $442.2 milliona ($1.26 per share) for the year ended December 31, 2023.
This was primarily driven by a significant $1.95 billionb after-tax impairment charge related to its offshore wind investments. Excluding these impairments and other charges, the company's non-GAAP earnings were $1.52 billion ($4.34 per share), an increase from $1.42 billion ($4.09 per share) in 2022, reflecting strong performance in its regulated utility businesses. The company anticipates continued growth, projecting 2024 non-GAAP earnings between $4.50 and $4.67 per share, with a long-term EPS growth rate of 5-7% for its regulated utilities through 2028.
Financially, capital expenditures were substantial at $4.34 billionc in 2023, supporting ongoing infrastructure investments across its electric distribution, transmission, natural gas, and water segments. The company also announced strategic initiatives, including the execution of an agreement to sell its 50% interests in the South Fork Wind and Revolution Wind projects for approximately $1.1 billion and an exploratory assessment to potentially monetize its water distribution business. These moves aim to strengthen the company's financial position and focus on its core regulated operations.
02—Key points
Key Highlights
- Significant $1.95 billion after-tax impairment charge for offshore wind investments led to a reported net loss of $442.2 million in 2023.
- Excluding impairments, non-GAAP earnings increased to $1.52 billion ($4.34/share) in 2023 from $1.42 billion ($4.09/share) in 2022.
- Projected 2024 non-GAAP earnings guidance is $4.50 - $4.67 per share, with projected long-term EPS growth of 5-7% for regulated utilities.
- Capital expenditures totaled $4.34 billion in 2023, with projected capital spending of $23.12 billion from 2024-2028 across utility segments.
- Agreements to sell 50% interests in South Fork Wind and Revolution Wind projects for approximately $1.1 billion are expected to close mid-2024.
- Initiated an exploratory assessment to potentially monetize the water distribution business.
- Dividends per common share increased to $2.70 in 2023 from $2.55 in 2022, with a further increase to $0.715 per share declared for Q1 2024.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 14, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $11.89B$12.27B | −3.1% |
| Operating Expenses | $9.51B$10.09B | −5.7% |
| Operating Income | $2.40B$2.20B | +9.2% |
| Interest Expense | $855.44M$678.27M | +26.1% |
| Net Income | -$442.24M$1.41B | −131.3% |
| EPS (Basic) | $-1.27$4.05 | −131.4% |
| EPS (Diluted) | $-1.26$4.05 | −131.1% |
| Shares Outstanding (Basic) | 349.58M346.78M | +0.8% |
| Shares Outstanding (Diluted) | 349.84M347.25M | +0.7% |
05—Questions
Frequently Asked Questions
What caused the significant net loss in 2023?
Eversource Energy reported a net loss of $442.2 million ($1.26 per share) in 2023 primarily due to a substantial after-tax impairment charge of $1.95 billion related to its offshore wind investments. This impairment reflects the company's current estimate of the fair value of these assets in light of evolving market conditions and project development.
What is the company's financial outlook for 2024 and beyond?
Eversource Energy projects 2024 non-GAAP earnings to be in the range of $4.50 to $4.67 per share. Looking ahead, the company anticipates a long-term EPS growth rate of 5% to 7% for its regulated utility businesses through 2028, indicating confidence in the stable performance of its core operations.
What are the company's plans regarding its offshore wind business?
Eversource Energy is actively divesting its offshore wind investments. It has entered into an agreement to sell its 50% interests in the South Fork Wind and Revolution Wind projects to Global Infrastructure Partners for approximately $1.1 billion, with closing expected in mid-2024. The company is also exploring the potential sale of its entire water distribution business.
How are capital expenditures being allocated?
The company is making significant investments in its infrastructure, with capital expenditures totaling $4.34 billion in 2023. Projected capital expenditures from 2024 through 2028 are substantial, amounting to $23.12 billion, with the largest allocations to electric distribution ($9.71 billion) and electric transmission ($5.77 billion), followed by natural gas distribution ($5.44 billion) and water distribution ($1.08 billion).
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