10-QPeriod: Q1 FY2013

NEXTERA ENERGY INC Quarterly Report for Q1 Ended Mar 31, 2013

Filed May 2, 2013For Securities:NEENEE-PNNEE-PSNEE-PTNEE-PWNEE-PVNEE-PU

Summary

NextEra Energy Inc. (NEE) reported a net income of $272 million for the first quarter of 2013, a decrease from $461 million in the prior year period. This decline was primarily driven by a significant $300 million impairment charge related to its Spain solar projects, impacting its competitive energy business (NEER). While Florida Power & Light (FPL) saw an increase in net income due to investments in its rate base and favorable regulatory orders, NEER's results were also affected by lower contributions from new investments and a significant unrealized mark-to-market loss on non-qualifying hedges. The company continues to invest heavily in capital projects, with an estimated $10.9 billion for FPL and $2.9 billion for NEER planned through 2017. Despite the quarterly dip in earnings, NEE maintained a strong liquidity position with approximately $5.7 billion in net available liquidity. The company also announced a gain from discontinued operations related to the sale of hydropower generation plants. Investors should monitor the ongoing legal proceedings regarding the Spain solar projects, which could impact future financial performance, and the company's ability to manage its significant capital expenditure plans.

Financial Highlights

43 data points
Beta

Revenue

$3.28B

Net Income

$272.00M

8.3% Net Margin

EPS (Diluted)

$0.16

Total Assets

$63.84B

Cash & Equivalents

$215.00M

Free Cash Flow

$1.08B

Financial Statements
Beta
Revenue$3.28B
Operating Expenses$2.85B
Operating Income$434.00M
Net Income$272.00M
EPS (Basic)$0.16
EPS (Diluted)$0.16
Shares Outstanding (Basic)1.68B
Shares Outstanding (Diluted)1.69B

Key Highlights

  • 1Net income decreased by 41% year-over-year to $272 million, largely due to a $300 million impairment charge on Spain solar projects.
  • 2Florida Power & Light (FPL) reported an increase in net income to $288 million, driven by regulatory approvals and investments in its rate base.
  • 3NextEra Energy Resources (NEER) experienced a net loss of $40 million, significantly impacted by the impairment charge and mark-to-market losses on derivative instruments.
  • 4The company recognized a significant gain of $188 million from discontinued operations, primarily from the sale of hydropower generation plants.
  • 5Total assets stood at $63.8 billion at the end of the quarter, with property, plant, and equipment remaining the largest component.
  • 6NEE maintained strong liquidity with approximately $5.7 billion in net available liquidity.
  • 7Capital expenditures remain a significant focus, with planned investments of $10.9 billion for FPL and $2.9 billion for NEER through 2017.

Frequently Asked Questions

The primary reason for the decrease in net income is a $300 million impairment charge related to NextEra Energy Resources' (NEER) Spain solar projects. This charge significantly impacted NEER's results, outweighing the improved performance from Florida Power & Light (FPL).

FPL performed well, with net income increasing to $288 million from $239 million in the prior year. This improvement was driven by continued investments in its electric system, allowing it to earn an 11% return on equity as permitted by recent regulatory orders, and the commencement of new retail base rates.

The company recognized a significant gain of $188 million from discontinued operations, primarily due to the sale of its hydropower generation plants. This was partly offset by a loss associated with initiating the sale of oil-fired generating plants.

NextEra Energy maintained a strong liquidity position, with approximately $5.7 billion in net available liquidity at the end of the quarter, across both NEE and FPL.

Investors should be aware of the legal proceedings related to the Spain solar projects, where the company is in dispute with lenders regarding its obligations following changes in Spanish law. The outcome of this litigation and potential restructuring of financing arrangements remains uncertain. Additionally, the company is involved in other routine legal and regulatory proceedings.