10-QPeriod: Q3 FY2013

NEXTERA ENERGY INC Quarterly Report for Q3 Ended Sep 30, 2013

Filed November 1, 2013For Securities:NEENEE-PNNEE-PSNEE-PTNEE-PWNEE-PVNEE-PU

Summary

NextEra Energy, Inc. (NEE) reported solid financial results for the third quarter and nine months ended September 30, 2013, demonstrating strong performance across its key business segments. Florida Power & Light Company (FPL), the regulated utility arm, saw increased net income driven by investments in its plant in service and a slight improvement in its regulatory return on equity. NEER, the competitive energy business, also experienced a significant uplift in its quarterly performance, primarily due to favorable mark-to-market adjustments on non-qualifying hedges and contributions from new investments, though its year-to-date results were impacted by an impairment charge related to its Spain solar projects. Overall, NEE's net income for the quarter rose substantially, reflecting the combined strength of FPL and the quarterly recovery at NEER. For the nine-month period, net income saw a modest increase year-over-year, with FPL's growth offsetting a decline at NEER, which was heavily influenced by the aforementioned impairment. The company maintained a strong liquidity position, underscoring its ability to fund ongoing capital expenditures and strategic growth initiatives across both its regulated and competitive segments.

Financial Highlights

43 data points
Beta

Revenue

$4.39B

Net Income

$698.00M

15.9% Net Margin

EPS (Diluted)

$0.41

Total Assets

$67.17B

Cash & Equivalents

$558.00M

Free Cash Flow

$1.14B

Financial Statements
Beta
Revenue$4.39B
Operating Expenses$3.21B
Operating Income$1.19B
Net Income$698.00M
EPS (Basic)$0.41
EPS (Diluted)$0.41
Shares Outstanding (Basic)1.70B
Shares Outstanding (Diluted)1.71B

Key Highlights

  • 1Total operating revenues increased to $4.39 billion for the three months ended September 30, 2013, up from $3.84 billion in the prior year period.
  • 2Net income for the three months ended September 30, 2013, was $698 million, a significant increase from $415 million in the prior year period.
  • 3Earnings per share (diluted) for the three months ended September 30, 2013, were $1.64, up from $0.98 in the prior year period.
  • 4For the nine months ended September 30, 2013, net income was $1.58 billion, an increase from $1.48 billion in the prior year period.
  • 5Florida Power & Light Company (FPL) reported a 7.7% increase in net income for the three months ended September 30, 2013 ($422 million vs. $392 million) and an 11.9% increase for the nine months ($1.10 billion vs. $984 million).
  • 6NEER's net income for the three months ended September 30, 2013, was $281 million, a substantial increase from $44 million in the prior year period, largely driven by mark-to-market gains on non-qualifying hedges.
  • 7NEE reported total assets of $67.17 billion as of September 30, 2013, an increase from $64.44 billion at December 31, 2012.

Frequently Asked Questions

NextEra Energy reported a significant increase in net income for the third quarter of 2013, reaching $698 million ($1.64 per diluted share), compared to $415 million ($0.98 per diluted share) in the same period of 2012. This growth was driven by higher earnings at its regulated utility, Florida Power & Light Company (FPL), and a substantial improvement in its competitive energy segment, NEER, largely due to favorable hedge adjustments and new investments.

For the first nine months of 2013, NEE's net income increased to $1.58 billion ($3.72 per diluted share) from $1.48 billion ($3.55 per diluted share) in the prior year. FPL's net income grew by 11.9% to $1.10 billion, primarily due to investments in plant in service. NEER's net income for the nine-month period decreased to $470 million from $516 million, mainly impacted by a $342 million after-tax impairment charge related to its Spain solar projects, partially offset by a $175 million gain from discontinued operations and higher earnings from new investments.

NEER's nine-month results were significantly affected by a $300 million impairment charge ($342 million after-tax) related to its Spain solar projects due to changes in Spanish renewable energy laws. This was partially offset by a $231 million pre-tax gain ($175 million after-tax) from the sale of its hydropower generation plants. The company also experienced a decrease in earnings from existing assets due to lower wind generation and the roll-off of Production Tax Credits (PTCs).

NextEra Energy maintained a strong liquidity position, with total net available liquidity of approximately $7.1 billion at September 30, 2013. The company anticipates funding its capital requirements, including growth capital for FPL and investments by NEER, through a combination of operating cash flow, short- and long-term borrowings, and the issuance of debt and equity securities. Its objective is to maintain a capital structure that supports a strong investment-grade credit rating.