Summary
NextEra Energy, Inc. (NEE) reported mixed financial results for the six months ended June 30, 2016, with a decrease in net income attributable to NEE compared to the same period in the prior year. This decline was primarily driven by lower results at its competitive energy business, NEER, and Corporate and Other segments, partly offset by higher results at its rate-regulated utility, FPL. While FPL demonstrated steady performance with increased net income driven by investments in infrastructure and a favorable regulatory environment, NEER's performance was impacted by significant unrealized mark-to-market losses on non-qualifying hedges, especially related to interest rate derivatives following the discontinuation of hedge accounting. Despite these challenges, NEE continues to invest heavily in capital expenditures for both its regulated utility and competitive energy businesses, signaling a commitment to future growth.
Financial Highlights
43 data points| Operating Expenses | $2.65B |
| Operating Income | $1.17B |
| Net Income | $540.00M |
| EPS (Basic) | $0.29 |
| EPS (Diluted) | $0.29 |
| Shares Outstanding (Basic) | 1.85B |
| Shares Outstanding (Diluted) | 1.86B |
Key Highlights
- 1Net income attributable to NEE decreased by $173 million for the six months ended June 30, 2016, compared to the prior year period, primarily due to lower performance in NEER and Corporate and Other segments.
- 2Florida Power & Light Company (FPL), NEE's rate-regulated utility, saw an increase in net income by $47 million for the six months ended June 30, 2016, driven by investments in plant in service and other property.
- 3NEER's net income decreased significantly due to $368 million in after-tax unrealized mark-to-market losses from non-qualifying hedge activity, largely related to interest rate derivative instruments after discontinuing hedge accounting.
- 4Capital expenditures remain robust, with total capital expenditures, independent power and other investments, and nuclear fuel purchases amounting to $6.1 billion for the six months ended June 30, 2016, up from $3.8 billion in the prior year.
- 5NEE recorded a gain of $106 million after tax from the sale of Texas natural gas generation facilities in the first half of 2016.
- 6The company's total net available liquidity was approximately $6.5 billion at June 30, 2016, indicating sufficient financial flexibility.