Summary
NextEra Energy, Inc. (NEE) reported its third-quarter 2016 financial results, showing a decrease in net income attributable to NEE for both the three and nine-month periods compared to the prior year. This decline was primarily driven by lower results at NEER (its competitive energy business) and Corporate and Other, partially offset by higher results at FPL (its rate-regulated electric utility subsidiary). Key operational highlights include continued investments in plant in service by FPL, leading to higher earnings. NEER's performance was impacted by lower net unrealized gains from non-qualifying hedge activities and changes in earnings from its gas infrastructure and existing assets. The company is actively pursuing significant strategic transactions, including the proposed acquisition of Oncor Electric Delivery Company LLC, which, if completed, would significantly expand its operational footprint in Texas. Additionally, NEE announced the proposed sale of its FiberNet business. Investors should note the ongoing strategic repositioning, with the sale of FiberNet and the significant proposed acquisition of Oncor. While FPL's regulated operations provide a stable earnings base, NEER's performance is subject to market volatility and hedging activities. The company's liquidity remains strong, supported by substantial credit facilities.
Financial Highlights
43 data points| Operating Expenses | $3.53B |
| Operating Income | $1.28B |
| Net Income | $753.00M |
| EPS (Basic) | $0.41 |
| EPS (Diluted) | $0.41 |
| Shares Outstanding (Basic) | 1.85B |
| Shares Outstanding (Diluted) | 1.86B |
Key Highlights
- 1Net income attributable to NEE decreased by $126 million for the three months ended September 30, 2016, and by $299 million for the nine months ended September 30, 2016, compared to the prior year periods.
- 2FPL's net income increased by $26 million and $73 million for the three and nine-month periods, respectively, driven by higher earnings from investments in its rate base.
- 3NEER's net income decreased due to lower net unrealized gains from non-qualifying hedge activities and changes in earnings from gas infrastructure and existing assets.
- 4NEE is pursuing the acquisition of 100% of Oncor Electric Delivery Company LLC through multiple agreements, a transaction expected to close in the first half of 2017.
- 5NEE announced the proposed sale of its FiberNet business for $1.5 billion, expected to close in the first half of 2017.
- 6The company's total liquidity remained strong, with approximately $9.1 billion available at September 30, 2016.