Summary
NextEra Energy, Inc. (NEE) reported mixed financial results for the three and six months ended June 30, 2021. While the FPL segment showed improved net income due to continued investments in infrastructure, the NEER segment experienced a significant decrease in net income, largely driven by unfavorable non-qualifying hedge activities and the absence of prior year gains on asset disposals. For the three months, net income attributable to NEE decreased year-over-year, primarily due to NEER's performance. However, for the six months, net income attributable to NEE increased, primarily due to improved results from Corporate and Other, and the FPL segment, partially offset by NEER's weaker performance. Operationally, NEE continues to invest heavily in its FPL segment, with significant capital expenditures planned for transmission and distribution. NEER is also actively developing new wind and solar projects. The company maintains a strong liquidity position with substantial revolving credit facilities. However, investors should note the significant impact of derivative instruments, particularly non-qualifying hedges, on NEER's earnings volatility. Additionally, FPL has filed a petition for a new four-year rate plan, with a decision expected in Q4 2021, which could impact future revenue requirements.
Financial Highlights
46 data points| Revenue | $4.70B |
| Operating Expenses | $3.41B |
| Operating Income | $510.00M |
| Net Income | $256.00M |
| EPS (Basic) | $0.13 |
| EPS (Diluted) | $0.13 |
| Shares Outstanding (Basic) | 1.96B |
| Shares Outstanding (Diluted) | 1.97B |
Key Highlights
- 1Net income attributable to NEE decreased by $1,019 million for the three months ended June 30, 2021, primarily due to lower results at NEER, partially offset by higher results at FPL and Gulf Power.
- 2For the six months ended June 30, 2021, net income attributable to NEE increased by $227 million, driven by higher results at Corporate and Other, FPL segment, and Gulf Power, partially offset by lower results at NEER.
- 3The FPL segment's net income increased by $79 million for the three months and $174 million for the six months ended June 30, 2021, primarily due to continued investments in plant in service and other property.
- 4NEER's net income decreased significantly in both periods, mainly attributable to unfavorable non-qualifying hedge activity and the absence of gains from asset disposals in the prior year.
- 5NEE's total capital expenditures for the six months ended June 30, 2021, were $8.3 billion, a substantial increase from $6.3 billion in the prior year, reflecting investments in both FPL and NEER segments, including the acquisition of GridLiance.
- 6The company maintained a strong liquidity position, with total net available liquidity of approximately $11.6 billion at June 30, 2021.
- 7FPL has filed a petition for a four-year rate plan with the FPSC, expected to be decided in Q4 2021, which could impact future revenue requirements.