Eversource Energy Completes Exit of Offshore Wind Business
Eversource Energy (NYSE: ES) has completed the sale of its 50% interest in the South Fork Wind and Revolution Wind projects to Global Infrastructure Partners (GIP) for adjusted gross proceeds of $745 million. This sale, along with the previously completed sale of Sunrise Wind to Ørsted, marks Eversource's exit from the offshore wind business.
The company expects to record an aggregate net loss of approximately $520 million in Q3 2024, which includes a $370 million gain from the Sunrise Wind sale and anticipated increases in Revolution Wind construction costs. Eversource also expects to recognize a liability of approximately $360 million, mostly to be settled in 2026.
Despite the sale, Eversource remains committed to its equity issuance plan of up to $1.3 billion over the next several years and maintains its target FFO/Debt ratio of 14% to 15% by 2025. The company will continue to provide onshore transmission expertise to support the clean energy transition in New England.
Eversource Energy (NYSE: ES) ha completato la vendita della sua partecipazione del 50% nei progetti South Fork Wind e Revolution Wind a Global Infrastructure Partners (GIP) per proventi lordi rettificati di 745 milioni di dollari. Questa vendita, insieme alla vendita già completata di Sunrise Wind a Ørsted, segna l'uscita di Eversource dal settore dell'energia eolica offshore.
La società prevede di registrare una perdita netta complessiva di circa 520 milioni di dollari nel terzo trimestre del 2024, che include un guadagno di 370 milioni di dollari dalla vendita di Sunrise Wind e l'anticipazione di un aumento dei costi di costruzione di Revolution Wind. Eversource prevede inoltre di riconoscere una responsabilità di circa 360 milioni di dollari, per lo più da saldare nel 2026.
Nonostante la vendita, Eversource rimane impegnata nel suo piano di emissione di capitale di fino a 1,3 miliardi di dollari nei prossimi anni e mantiene il suo obiettivo di rapporto FFO/Debito di tra il 14% e il 15% entro il 2025. L'azienda continuerà a fornire competenze nella trasmissione onshore per supportare la transizione verso l'energia pulita nel New England.
Eversource Energy (NYSE: ES) ha completado la venta de su participación del 50% en los proyectos South Fork Wind y Revolution Wind a Global Infrastructure Partners (GIP) por ingresos brutos ajustados de 745 millones de dólares. Esta venta, junto con la venta previamente completada de Sunrise Wind a Ørsted, marca la salida de Eversource del negocio de energía eólica marina.
La empresa espera registrar una pérdida neta total de aproximadamente 520 millones de dólares en el tercer trimestre de 2024, que incluye una ganancia de 370 millones de dólares de la venta de Sunrise Wind y un aumento anticipado en los costos de construcción de Revolution Wind. Eversource también espera reconocer una responsabilidad de aproximadamente 360 millones de dólares, mayormente a liquidar en 2026.
A pesar de la venta, Eversource se mantiene comprometida con su plan de emisión de capital de hasta 1.3 mil millones de dólares en los próximos años y mantiene su objetivo de relación FFO/Debido del 14% al 15% para 2025. La empresa continuará proporcionando experiencia en transmisión terrestre para apoyar la transición energética limpia en Nueva Inglaterra.
Eversource Energy (NYSE: ES)는 남부 포크 풍력 및 혁명 풍력 프로젝트에서의 50% 지분을 Global Infrastructure Partners (GIP)에 745 백만 달러의 조정 총 수익으로 판매했습니다. 이 판매는 Ørsted에 대한 Sunrise Wind의 판매와 함께 Eversource의 해상 풍력 사업에서의 종료를 나타냅니다.
회사는 2024년 3분기에 약 5억 2천만 달러의 총 순손실을 기록할 것으로 예상하고 있으며, 여기에는 Sunrise Wind 판매로 인한 3억 7천만 달러의 이익과 Revolution Wind 건설 비용 증가가 포함됩니다. Eversource는 또한 약 3억 6천만 달러의 부채를 인정할 것으로 예상하며, 대부분 2026년에 결제될 예정입니다.
판매에도 불구하고 Eversource는 향후 몇 년 동안 최대 13억 달러의 자본 발행 계획에 헌신하고 있으며, 2025년까지 14%에서 15%의 FFO/부채 비율 목표를 유지합니다. 이 회사는 계속해서 뉴잉글랜드에서의 청정 에너지 전환을 지원하기 위한 육상 송전 전문성을 제공할 것입니다.
Eversource Energy (NYSE: ES) a achevé la vente de sa participation de 50% dans les projets South Fork Wind et Revolution Wind à Global Infrastructure Partners (GIP) pour un produit brut ajusté de 745 millions de dollars. Cette vente, ainsi que la vente précédemment réalisée de Sunrise Wind à Ørsted, marque la sortie d'Eversource du secteur de l'énergie éolienne en mer.
L'entreprise prévoit d'enregistrer une perte nette agrégée d'environ 520 millions de dollars au troisième trimestre 2024, ce qui inclut un gain de 370 millions de dollars provenant de la vente de Sunrise Wind et des augmentations anticipées des coûts de construction du projet Revolution Wind. Eversource s'attend également à reconnaître une responsabilité d'environ 360 millions de dollars, à régler pour la plupart en 2026.
Malgré cette vente, Eversource reste engagée dans son plan d'émission d'actions d'un montant allant jusqu'à 1,3 milliard de dollars au cours des prochaines années et maintient son objectif de ratio FFO/Dette de 14% à 15% d'ici 2025. L'entreprise continuera à fournir son expertise en transmission terrestre pour soutenir la transition vers une énergie propre dans le New England.
Eversource Energy (NYSE: ES) hat den Verkauf seiner 50% Beteiligung an den Projekten South Fork Wind und Revolution Wind an Global Infrastructure Partners (GIP) für bereinigte Bruttoerträge von 745 Millionen US-Dollar abgeschlossen. Dieser Verkauf, zusammen mit dem bereits abgeschlossenen Verkauf von Sunrise Wind an Ørsted, markiert den Ausstieg von Eversource aus dem Offshore-Windgeschäft.
Das Unternehmen erwartet, im 3. Quartal 2024 einen aggregierten Nettverlust von etwa 520 Millionen US-Dollar zu verbuchen, der einen Gewinn von 370 Millionen US-Dollar aus dem Verkauf von Sunrise Wind sowie voraussichtliche Kostensteigerungen beim Bau von Revolution Wind umfasst. Eversource erwartet außerdem, eine Verbindlichkeit von etwa 360 Millionen US-Dollar anzuerkennen, die größtenteils 2026 beglichen werden soll.
Ungeachtet des Verkaufs hält Eversource an seinem Kapitalemissionsplan von bis zu 1,3 Milliarden US-Dollar in den nächsten Jahren fest und hält seine Zielverhältnis von FFO/Schulden von 14% bis 15% bis 2025 ein. Das Unternehmen wird weiterhin Fachkenntnisse in der terrestrischen Übertragung bereitstellen, um den Übergang zu sauberer Energie in New England zu unterstützen.
- Completed sale of offshore wind assets for $745 million in proceeds
- Maintains equity issuance plan of up to $1.3 billion over next several years
- Targets FFO/Debt ratio of 14% to 15% by 2025
- Strengthens balance sheet and improves credit metrics
- Continues to provide onshore transmission expertise for clean energy projects
- Records aggregate net loss of approximately $520 million in Q3 2024
- Recognizes liability of approximately $360 million, mostly to be settled in 2026
- Adjusted gross proceeds reduced by $375 million compared to expected purchase price
- Delay in Revolution Wind's commercial operations date impacts sale terms
- Forecasted higher capital construction costs for Revolution Wind of approximately $350 million
Insights
Eversource Energy's completion of its offshore wind business exit marks a significant strategic shift. The sale of interests in South Fork Wind and Revolution Wind projects to Global Infrastructure Partners for
Key financial implications include:
- A
$370 million gain from the previous Sunrise Wind sale - An expected
$360 million liability, mostly to be settled in 2026 - Potential for further adjustments based on final construction costs and project economics
Despite these challenges, Eversource maintains its
Eversource's exit from offshore wind signifies a broader trend in the utility sector, with companies refocusing on core regulated businesses. This strategic pivot has several industry-wide implications:
- Shift in renewable energy landscape: Major utilities are reassessing their roles in capital-intensive offshore wind projects, potentially slowing the sector's growth.
- Transmission opportunities: Eversource's commitment to onshore transmission work supporting renewable energy highlights a less risky approach to participating in the clean energy transition.
- Market consolidation: The sale to Global Infrastructure Partners may lead to further consolidation in the offshore wind industry, with specialized developers taking larger roles.
While this move may reduce Eversource's direct exposure to renewable energy development risks, it also limits its potential upside in a rapidly growing sector. The company's future growth will likely depend more heavily on rate base investments and regulatory outcomes in its core utility operations.
Company Closes on the Sale of Revolution Wind and South Fork Wind to Global Infrastructure Partners
Adjusted gross proceeds from the sale were reduced by approximately
“We have reached an important milestone today in our commitment as a pure-play regulated pipes and wires utility that delivers superior service and value to our customers,” said Eversource Chairman, President and Chief Executive Officer Joe Nolan. “We are proud of the role we have played to advance offshore wind projects, and we will continue to be a leader in employing our transmission expertise to conduct onshore work that supports the clean energy transition and enables the continued development of renewable resources for our region.”
With the completion of this sale and the previously completed sale of the Company’s 50 percent interest in the Sunrise Wind project (Sunrise Wind) to Ørsted announced on July 9, 2024, Eversource expects to record an aggregate net loss on the completion of its offshore wind divesture of approximately
“We have completed an important step in our journey to strengthen our balance sheet and improve our credit metrics, with the closing of this transaction and resulting proceeds,” said Eversource Executive Vice President and Chief Financial Officer John Moreira. “Our equity issuance plan of up to
The following factors were included in the aggregate net loss of
-
A gain on the sale of Eversource’s 50 percent interest in Sunrise Wind to Ørsted of approximately
$370 million
Offsets include:
-
Lower proceeds related to final terms of the sale transaction to GIP of approximately
$225 million -
Forecasted higher capital construction costs as a result of a delay in the anticipated commercial operation date related to Revolution Wind of approximately
$350 million -
Anticipated post-closing adjustments of approximately
$315 million
Proceeds related to this sale may be further adjusted due to final construction costs and updated project economics as of the commercial operation date of Revolution Wind. South Fork Wind has achieved commercial operations and, as a result, Eversource does not expect a material financial impact related to this project. With the previously announced sale of Sunrise Wind to Ørsted, Eversource has no ongoing financial obligations associated with Sunrise Wind. With the completion of this sale, Eversource has now divested all its ownership interests in the offshore wind business. Eversource will maintain its previously announced tax equity investment in South Fork Wind. The sale of the offshore wind projects has no impact on Eversource’s regulated entities.
Factors that could cause Eversource’s total net proceeds to be higher or lower at Revolution Wind’s commercial operations date include the following:
- Revolution Wind’s eligibility for federal investment tax credits at other than the anticipated 40 percent level;
-
The ultimate cost of construction for Revolution Wind. Under the purchase and sale agreement, Eversource and GIP will share the difference between a base construction forecast and the aggregate cost of the two projects up to an effective cap of approximately
$240 million - Further delays in constructing Revolution Wind, that would impact the economics associated with the purchase price adjustment; and
- Lower operation costs or higher availability of the projects. Eversource can benefit, but not be harmed, from lower costs of operations and/or higher availability as compared to a base level assumed in the projects’ financial models through the period that is four years following commercial operation date of the Revolution Wind project.
Under the agreement, Eversource’s existing and certain additional credit support obligations for Revolution Wind are expected to roll off as the project completes construction.
Eversource engaged Goldman Sachs as its financial advisor to assist with the sale. Ropes & Gray LLP served as its legal counsel.
Eversource (NYSE: ES), celebrated as a national leader for its corporate citizenship, is among the top energy companies in Newsweek’s list of America’s Most Responsible Companies for 2024 and recognized as a Five-Year Champion, appearing in every edition of the list. Eversource transmits and delivers electricity and natural gas and supplies water to approximately 4.4 million customers in
This document includes statements concerning Eversource Energy’s expectations, beliefs, plans, objectives, goals, strategies, assumptions of future events, future financial performance or growth and other statements that are not historical facts, including anticipated third and fourth quarters of fiscal 2024 and fiscal 2025 financial impacts of the now-divested offshore wind investment, the timing of liability settlement, Eversource’s equity issuance plans and the timing thereof, Eversource’s future onshore work, and the development of offshore wind in New England. These statements are “forward-looking statements” within the meaning of
Other risk factors are detailed in Eversource Energy’s reports filed with the Securities and Exchange Commission (SEC). They are updated as necessary and available on Eversource Energy’s website at www.eversource.com and on the SEC’s website at www.sec.gov. All such factors are difficult to predict and contain uncertainties that may materially affect Eversource Energy’s actual results, many of which are beyond our control. You should not place undue reliance on the forward-looking statements, as each speaks only as of the date on which such statement is made, and, except as required by federal securities laws, Eversource Energy undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240930672791/en/
Kaitlyn Woods (Media)
kaitlyn.woods@eversource.com
603-860-3123
Rima Hyder (Investor Relations)
rima.hyder@eversource.com
781-441-8062
Source: Eversource Energy
FAQ
What is the total value of Eversource Energy's (ES) offshore wind asset sale?
How much net loss does Eversource Energy (ES) expect to record from the offshore wind divestiture?
What is Eversource Energy's (ES) equity issuance plan following the offshore wind asset sale?
What is Eversource Energy's (ES) target FFO/Debt ratio by 2025?
How much liability does Eversource Energy (ES) expect to recognize related to the offshore wind asset sale?
