NEXTERA ENERGY INC Quarterly Report for Q1 Ended Mar 31, 2019

Summary

NextEra Energy, Inc. (NEE) reported its first-quarter 2019 financial results, showcasing a significant year-over-year decrease in net income attributable to NEE, primarily driven by the absence of a large gain recognized in the prior year related to the deconsolidation of NEP. While overall net income declined substantially, the core utility operations of Florida Power & Light Company (FPL) demonstrated resilience, with net income increasing due to ongoing investments in plant in service and improved regulatory returns. The company's competitive energy business, NEER, experienced lower results compared to the prior year, impacted by unfavorable non-qualifying hedge activity and the lack of significant one-time gains. However, NEER continued to expand its renewable energy portfolio with new wind and solar projects coming online. The recent acquisition of Gulf Power in January 2019 is beginning to contribute to the consolidated results. Despite the year-over-year net income decline, NEE maintained a strong liquidity position.

Key Highlights

• 1Net income attributable to NEE decreased by $3,751 million to $680 million ($1.41 per diluted share) for the three months ended March 31, 2019, compared to $4,431 million ($9.32 per diluted share) for the same period in 2018, primarily due to the absence of a significant gain from the NEP deconsolidation in the prior year.
• 2Florida Power & Light Company (FPL) saw an increase in net income to $588 million, driven by investments in plant in service and a higher regulatory Return on Equity (ROE).
• 3NEER's results decreased significantly, largely due to the absence of the NEP investment gain and the favorable impact of tax reform adjustments in the prior year, along with losses from non-qualifying hedge activities.
• 4The acquisition of Gulf Power in January 2019 contributed $37 million in net income to NEE for the quarter.
• 5NEE's effective income tax rate decreased to 11% from 25% in the prior year, primarily due to the impact of Production Tax Credits (PTCs) and Investment Tax Credits (ITCs) on lower pre-tax income.
• 6Total assets increased to $109,029 million from $103,702 million at the end of 2018, with significant increases in Property, Plant and Equipment, reflecting ongoing capital expenditures and the Gulf Power acquisition.
• 7NEE maintained robust liquidity, with total net available liquidity of approximately $8.5 billion at March 31, 2019.

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