10-QPeriod: Q2 FY2020

NEXTERA ENERGY INC Quarterly Report for Q2 Ended Jun 30, 2020

Filed July 24, 2020For Securities:NEENEE-PNNEE-PSNEE-PTNEE-PWNEE-PVNEE-PU

Summary

NextEra Energy, Inc. (NEE) reported solid financial results for the second quarter and first half of 2020, demonstrating resilience amidst the ongoing economic uncertainties. For the quarter ended June 30, 2020, net income attributable to NEE was $1.275 billion, or $2.59 per diluted share, largely in line with the previous year's performance. The six-month period showed a slight decrease in net income attributable to NEE to $1.695 billion from $1.914 billion in the prior year, with diluted earnings per share at $3.45 compared to $3.97. The company's performance was driven by its regulated utility subsidiary, Florida Power & Light (FPL), which continued to invest in its infrastructure, contributing to stable earnings. NextEra Energy Resources (NEER), the competitive energy business, experienced some volatility, particularly due to non-qualifying hedge activity and the absence of prior year investment gains, though new investments and existing generation assets provided some offset. Despite these factors, NEE maintained a strong liquidity position, ending the period with approximately $13.0 billion in net available liquidity.

Financial Highlights

44 data points
Beta

Revenue

$4.10B

Net Income

$1.27B

31.1% Net Margin

EPS (Diluted)

$0.65

Total Assets

$121.96B

Cash & Equivalents

$1.01B

Free Cash Flow

$1.90B

Financial Statements
Beta
Revenue$4.10B
Operating Expenses$3.04B
Operating Income$1.19B
Net Income$1.27B
EPS (Basic)$0.65
EPS (Diluted)$0.65
Shares Outstanding (Basic)1.96B
Shares Outstanding (Diluted)1.97B

Key Highlights

  • 1Net income attributable to NEE for Q2 2020 was $1.275 billion, a slight increase from $1.234 billion in Q2 2019, demonstrating stable performance.
  • 2Diluted EPS for Q2 2020 was $2.59, up from $2.56 in Q2 2019, indicating consistent shareholder value generation.
  • 3Total assets grew to $121.96 billion from $117.69 billion at the end of 2019, reflecting continued investment in property, plant, and equipment.
  • 4Cash flows from operating activities were strong at $3.792 billion for the first six months of 2020, up from $3.281 billion in the prior year, showcasing robust operational cash generation.
  • 5NEE maintained significant liquidity with approximately $13.0 billion in net available liquidity at June 30, 2020.
  • 6The company continues to invest heavily in its future, with projected capital expenditures for 2020-2024 estimated at approximately $29.7 billion for FPL and $7.7 billion for NEER.
  • 7Management is actively monitoring the COVID-19 pandemic and has implemented plans to mitigate potential risks, with no material impact reported to date.

Frequently Asked Questions

For the second quarter of 2020, NEE reported net income attributable to NEE of $1.275 billion, a slight increase from $1.234 billion in the same period of 2019. Diluted earnings per share (EPS) also saw a modest rise to $2.59 from $2.56. For the first six months of 2020, net income attributable to NEE was $1.695 billion, a decrease from $1.914 billion in the first six months of 2019, with diluted EPS at $3.45 compared to $3.97 in the prior year.

The stable performance was primarily driven by Florida Power & Light (FPL), which continued to invest in its infrastructure and delivered consistent earnings. NextEra Energy Resources (NEER), the competitive energy segment, experienced some volatility due to factors like non-qualifying hedge activity and the absence of prior year investment gains. However, new investments and existing generation assets provided offsets. Favorable results were also seen in Corporate and Other for the quarter, largely due to non-qualifying hedge activity.

NEE maintained a strong liquidity position with approximately $13.0 billion in net available liquidity at June 30, 2020. The company anticipates funding its operational and growth requirements through a combination of cash flows from operations, short- and long-term borrowings, and proceeds from equity and debt issuances, consistent with its strategy to maintain a strong investment-grade credit rating.

NEE and its subsidiaries, including FPL, are closely monitoring the global COVID-19 outbreak and have implemented pandemic plans to mitigate potential risks. To date, the company reports no material impact on its workforce, operations, financial performance, liquidity, or supply chain, although the long-term effects remain uncertain.