Summary
NEXTERA ENERGY INC (NEE) filed its 10-Q for the period ending September 29, 2004, reporting net income of $320 million for the third quarter, a slight decrease from $331 million in the prior year. For the first nine months, net income was $715 million, down from $745 million in the same period of 2003. The company was significantly impacted by three major hurricanes in the third quarter, which caused substantial property damage and resulted in an estimated earnings per share reduction of 14 cents for the year-to-date period. These storms led to significant restoration costs, exceeding the existing storm reserve by $361 million, which has been recorded as a regulatory asset and will be sought for recovery. Despite the hurricane impacts, FPL Group reported strong customer growth. FPL Energy also showed increased earnings year-to-date, benefiting from project additions and improved market conditions, though current quarter earnings saw a slight decrease. The company continues to manage its capital structure with a combination of internally generated funds and debt issuance, maintaining a strong investment-grade credit rating. Upcoming capital expenditures are substantial, focused on generation, transmission, distribution, and wind projects.
Key Highlights
- 1Net income for the third quarter of 2004 was $320 million, down from $331 million in the prior year's third quarter.
- 2Nine-month net income was $715 million, down from $745 million in the same period of 2003.
- 3The company experienced significant impacts from three major hurricanes in the third quarter, leading to an estimated 14-cent reduction in year-to-date EPS and a $361 million storm reserve deficiency.
- 4FPL Energy's year-to-date net income increased to $183 million from $156 million, driven by project additions and favorable market conditions.
- 5Customer growth remained strong, partially offsetting the negative impacts of the hurricanes on FPL's revenues.
- 6Planned capital expenditures for the remainder of 2004 through 2008 are estimated at approximately $6.6 billion for FPL and $700 million for FPL Energy.
- 7The company has a robust liquidity position with $3.5 billion in available revolving credit facilities.