Summary
NextEra Energy Inc. (NEE) reported its third-quarter 2009 financial results, showcasing a mixed performance influenced by various factors impacting both its regulated utility (FPL) and competitive energy business (NextEra Energy Resources). For the three months ended September 30, 2009, consolidated net income decreased by 31% year-over-year to $533 million, or $1.31 per diluted share, primarily due to significant net unrealized mark-to-market losses on non-qualifying hedges, contrasting with gains in the prior year. The regulated utility segment, FPL, saw a slight decrease in net income to $306 million, impacted by income tax adjustments and higher operating expenses, although partially offset by a base rate increase. NextEra Energy Resources experienced a substantial decrease in net income to $233 million, mainly due to the shift from gains to losses in its non-qualifying hedge activity and unfavorable market conditions in the ERCOT region. However, for the nine-month period, consolidated net income saw a modest increase to $1,267 million, driven by improvements in NextEra Energy Resources, partly due to new investments and tax benefits, as well as the impact of the spent fuel settlement agreement. Investors should note the company's ongoing capital expenditure plans, particularly in renewable energy and plant modernization. Management is confident in the company's liquidity and access to credit markets, with significant available liquidity at the end of the quarter. The company is also awaiting a decision on its proposed base rate increase for FPL, expected in early 2010, which could materially impact future results.
Financial Highlights
40 data points| Revenue | $4.47B |
| Operating Expenses | $3.62B |
| Operating Income | $849.00M |
| Net Income | $533.00M |
| EPS (Basic) | $0.33 |
| EPS (Diluted) | $0.33 |
| Shares Outstanding (Basic) | 1.62B |
| Shares Outstanding (Diluted) | 1.63B |
Key Highlights
- 1Consolidated net income for the three months ended September 30, 2009, decreased by 31% to $533 million, or $1.31 per diluted share, compared to $774 million, or $1.92 per diluted share, in the prior year, primarily due to mark-to-market hedge accounting impacts.
- 2FPL (the regulated utility segment) reported a slight decrease in net income to $306 million for the quarter, despite a base rate increase from new generation coming online.
- 3NextEra Energy Resources (the competitive energy segment) saw its quarterly net income fall significantly to $233 million from $483 million in the prior year, mainly due to a shift in mark-to-market hedge results and unfavorable market conditions.
- 4For the nine months ended September 30, 2009, consolidated net income increased slightly to $1,267 million from $1,232 million in the prior year, driven by NextEra Energy Resources' performance.
- 5The company reported substantial planned capital expenditures through 2013, with significant investments in generation (both new and existing), transmission, distribution, and nuclear fuel, particularly for FPL.
- 6NextEra Energy Resources anticipates significant growth from wind and solar generation, with substantial capacity additions planned for the coming years, subject to public policy support and market conditions.
- 7The company maintained strong liquidity, with approximately $4.7 billion in net available liquidity at the end of the quarter.