Eversource Energy Reports First Quarter 2024 Results
Eversource Energy reported earnings of $521.8 million, or $1.49 per share, for Q1 2024, compared to $491.2 million, or $1.41 per share, for Q1 2023. The company approved a dividend of $0.715 per share and reaffirmed its 2024 earnings projection. Eversource Energy's various segments showed improved results, with the electric transmission segment earning $176.7 million, the electric distribution segment earning $168.1 million, the natural gas distribution segment earning $190.6 million, and the water distribution segment earning $5.4 million in Q1 2024.
Eversource Energy reported increased earnings per share for Q1 2024 compared to Q1 2023, showing growth in financial performance.
The company reaffirmed its 2024 earnings projection and compound annual earnings per share growth rate, providing stability and growth potential for investors.
The electric transmission, electric distribution, natural gas distribution, and water distribution segments all showed improved results in Q1 2024, indicating positive performance across various business sectors.
Eversource Energy's parent and other companies reported a loss in Q1 2024, mainly due to higher interest expenses and the absence of prior year benefits, potentially impacting overall financial performance.
Despite the positive results, the company faces risks such as higher interest, depreciation, and property tax expenses in certain segments, which could impact future profitability.
Insights
The recent earnings report from Eversource Energy highlights a positive upward trend in their financial performance, with a year-over-year increase in earnings from $491.2 million to $521.8 million. This is a noteworthy increment for investors, signaling a solid financial health of the company. The growth in the electric transmission and natural gas distribution segments is particularly encouraging, indicating successful capital investments and infrastructure improvements. Additionally, the reaffirmation of the 2024 non-GAAP earnings projection and the compound annual earnings per share growth rate between 5 to 7 percent provides a clear expectation of the company's confidence in its future performance. The dividend declaration can be seen as a tangible return on investment, contributing to shareholder value.
In the context of the energy sector, Eversource Energy's expansion in electric transmission capacity and the successful launch of the South Fork Wind farm are significant. These initiatives align with the broader industry trend towards renewable energy sources and the modernization of energy infrastructure. The increase in earnings from the electric and natural gas segments suggests that Eversource is effectively adapting to the regulatory environment and market demands for cleaner energy. However, investors should be aware of the potential risks associated with regulation changes and the high capital expenditure required for such large-scale projects, which could affect future financial performance.
From an investment standpoint, the utility sector is typically characterized by low volatility and steady dividends, which Eversource's recent earnings report seems to reinforce. The consistency in their earnings performance and the dividend increase imply a reliable income stream. Yet, investors will want to monitor the company's substantial forecasted capital investments of $23.1 billion to maintain growth in earnings. While such investment is important for long-term success, it is important to assess how it will be financed and its impact on the company's debt profile. Investors should also consider the company's operational efficiency, particularly in the face of higher interest, depreciation and property tax expenses as reported.
Also today, the Eversource Energy Board of Trustees approved a common dividend of
The company reaffirms its 2024 non-GAAP earnings projection of between
“Our financial performance was strong in the first quarter, thanks to the hard work of our 10,000 employees. Our dedicated team also responded effectively to a series of ice, snow, and wind events across our three states, once again showing their commitment to serving our customers and communities,” said Joe Nolan, Eversource Energy Chairman, President, and Chief Executive Officer. “In other news, we were proud to make history during the first quarter, when Eversource and Ørsted’s South Fork Wind farm became the first operational commercial-scale offshore wind facility in the
Electric Transmission
Eversource Energy’s transmission segment earned
Electric Distribution
Eversource Energy’s electric distribution segment earned
Natural Gas Distribution
Eversource Energy’s natural gas distribution segment earned
Water Distribution
Eversource Energy’s water distribution segment earned
Eversource Parent and Other Companies
Eversource Energy parent and other companies had a loss of
Eversource Energy Consolidated Earnings
The following table reconciles consolidated GAAP earnings per share for the first quarters of 2024 and 2023:
|
|
First Quarter |
||
2023 |
Reported EPS |
$ |
1.41 |
|
|
Higher electric transmission segment earnings in 2024 |
|
0.05 |
|
|
At the electric distribution segment, higher revenues in 2024, partially offset by higher interest, depreciation, non-tracked O&M and property taxes |
|
0.01 |
|
|
At the natural gas distribution segment in 2024, higher revenues and lower non-tracked O&M, partially offset by higher depreciation and interest |
|
0.05 |
|
|
At the water distribution segment, lower depreciation rates partially offset by higher interest and non-tracked O&M |
|
0.01 |
|
|
At parent and other companies in 2024, higher interest and the absence of a prior year benefit, partially offset by a lower effective tax rate |
|
(0.04 |
) |
2024 |
Reported EPS |
$ |
1.49 |
|
Financial results for the first quarters of 2024 and 2023 for Eversource Energy’s business segments and parent and other companies are noted below:
Three months ended:
(in millions, except EPS) |
March 31, 2024 |
March 31, 2023 |
Increase/ (Decrease) |
2024 EPS |
2023 EPS |
|||||||||
Electric Transmission |
$ |
176.7 |
|
$ |
155.1 |
|
$ |
21.6 |
|
$ |
0.50 |
|
$ |
0.45 |
Electric Distribution |
|
168.1 |
|
|
165.5 |
|
|
2.6 |
|
|
0.48 |
|
|
0.47 |
Natural Gas Distribution |
|
190.6 |
|
|
170.3 |
|
|
20.3 |
|
|
0.54 |
|
|
0.49 |
Water Distribution |
|
5.4 |
|
|
1.5 |
|
|
3.9 |
|
|
0.01 |
|
|
— |
Parent and Other Companies |
|
(19.0 |
) |
|
(1.2 |
) |
|
(17.8 |
) |
|
(0.04 |
) |
|
— |
Reported Earnings |
$ |
521.8 |
|
$ |
491.2 |
|
$ |
30.6 |
|
$ |
1.49 |
|
$ |
1.41 |
Eversource Energy has approximately 351 million common shares outstanding and operates New England’s largest energy delivery system. It serves approximately 4.4 million electric, natural gas and water customers in
Note: Eversource Energy will webcast a conference call with senior management on May 2, 2024, beginning at 9 a.m. Eastern Time. The webcast and associated slides can be accessed through Eversource Energy’s website at www.eversource.com. |
1 All per-share amounts in this news release are reported on a diluted basis. The only common equity securities that are publicly traded are common shares of Eversource Energy. The earnings discussion includes financial measures that are not recognized under generally accepted accounting principles (non-GAAP) referencing earnings and EPS excluding the impairment charge for the offshore wind investment and certain transaction, transition, and other charges. EPS by business is also a non-GAAP financial measure and is calculated by dividing the net income attributable to common shareholders of each business by the weighted average diluted Eversource Energy common shares outstanding for the period. The earnings and EPS of each business do not represent a direct legal interest in the assets and liabilities of such business, but rather represent a direct interest in Eversource Energy’s assets and liabilities as a whole. Eversource Energy uses this non-GAAP financial measure to evaluate and provide details of earnings results by business This non-GAAP financial measure should not be considered as an alternative to Eversource Energy’s EPS determined in accordance with GAAP as an indicator of Eversource Energy’s operating performance. 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. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, readers can identify these forward-looking statements through the use of words or phrases such as “estimate,” “expect,” “anticipate,” “intend,” “plan,” “project,” “believe,” “forecast,” “should,” “could” and other similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results or outcomes to differ materially from those included in the forward-looking statements. Forward-looking statements are based on the current expectations, estimates, assumptions, or projections of management and are not guarantees of future performance. These expectations, estimates, assumptions, or projections may vary materially from actual results. Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the following important factors that may cause our actual results or outcomes to differ materially from those contained in our forward-looking statements, including, but not limited to: cyberattacks or breaches, including those resulting in the compromise of the confidentiality of our proprietary information and the personal information of our customers; our ability to complete the offshore wind investments sales process on the timelines, terms and pricing we expect; if we and the counterparties are unable to satisfy all closing conditions and consummate the purchase and sale transactions with respect to our offshore wind assets; if we are unable to qualify for investment tax credits related to these projects; if we experience variability in the projected construction costs of the offshore wind projects, if there is a deterioration of market conditions in the offshore wind industry; and if the projects do not commence operation as scheduled or within budget or are not completed, disruptions in the capital markets or other events that make our access to necessary capital more difficult or costly; changes in economic conditions, including impact on interest rates, tax policies, and customer demand and payment ability; ability or inability to commence and complete our major strategic development projects and opportunities; acts of war or terrorism, physical attacks or grid disturbances that may damage and disrupt our electric transmission and electric, natural gas, and water distribution systems; actions or inaction of local, state and federal regulatory, public policy and taxing bodies; substandard performance of third-party suppliers and service providers; fluctuations in weather patterns, including extreme weather due to climate change; changes in business conditions, which could include disruptive technology or development of alternative energy sources related to our current or future business model; contamination of, or disruption in, our water supplies; changes in levels or timing of capital expenditures; changes in laws, regulations or regulatory policy, including compliance with environmental laws and regulations; changes in accounting standards and financial reporting regulations; actions of rating agencies; and other presently unknown or unforeseen factors.
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.
EVERSOURCE ENERGY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
|||||||
|
|
||||||
|
For the Three Months Ended March 31, |
||||||
(Thousands of Dollars, Except Share Information) |
|
2024 |
|
|
|
2023 |
|
|
|
|
|
||||
Operating Revenues |
$ |
3,332,575 |
|
|
$ |
3,795,643 |
|
|
|
|
|
||||
Operating Expenses: |
|
|
|
||||
Purchased Power, Purchased Natural Gas and Transmission |
|
1,235,956 |
|
|
|
1,903,246 |
|
Operations and Maintenance |
|
462,964 |
|
|
|
454,562 |
|
Depreciation |
|
339,914 |
|
|
|
312,955 |
|
Amortization |
|
(2,325 |
) |
|
|
(76,059 |
) |
Energy Efficiency Programs |
|
213,479 |
|
|
|
222,952 |
|
Taxes Other Than Income Taxes |
|
236,614 |
|
|
|
228,414 |
|
Total Operating Expenses |
|
2,486,602 |
|
|
|
3,046,070 |
|
Operating Income |
|
845,973 |
|
|
|
749,573 |
|
Interest Expense |
|
250,749 |
|
|
|
194,543 |
|
Other Income, Net |
|
91,030 |
|
|
|
88,981 |
|
Income Before Income Tax Expense |
|
686,254 |
|
|
|
644,011 |
|
Income Tax Expense |
|
162,526 |
|
|
|
150,972 |
|
Net Income |
|
523,728 |
|
|
|
493,039 |
|
Net Income Attributable to Noncontrolling Interests |
|
1,880 |
|
|
|
1,880 |
|
Net Income Attributable to Common Shareholders |
$ |
521,848 |
|
|
$ |
491,159 |
|
|
|
|
|
||||
Basic and Diluted Earnings Per Common Share |
$ |
1.49 |
|
|
$ |
1.41 |
|
|
|
|
|
||||
Weighted Average Common Shares Outstanding: |
|
|
|
||||
Basic |
|
350,717,114 |
|
|
|
349,217,147 |
|
Diluted |
|
350,997,220 |
|
|
|
349,612,013 |
|
The data contained in this report is preliminary and is unaudited. This report is being submitted for the sole purpose of providing information to shareholders about Eversource Energy and Subsidiaries and is not a representation, prospectus, or intended for use in connection with any purchase or sale of securities.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240501374307/en/
Matthew P. Fallon
(860) 665-6242
Source: Eversource Energy
FAQ
What were Eversource Energy's earnings per share for Q1 2024?
What dividend was approved by Eversource Energy's Board of Trustees?
What segments showed improved results for Eversource Energy in Q1 2024?
