Fortis Inc. Releases Third Quarter 2024 Results
Fortis Inc. (TSX/NYSE: FTS) reported strong Q3 2024 results with net earnings of $420 million ($0.85 per share), up from $394 million ($0.81 per share) in Q3 2023. The company announced a $26 billion capital plan for 2025-2029, projecting 6.5% average annual rate base growth. Capital expenditures for 2024 are expected to reach $5.2 billion, with $3.6 billion invested through September. The Board declared a 4.2% increase in Q4 dividend, marking 51 consecutive years of dividend increases. Growth was driven by rate base expansion across utilities and strong earnings in Arizona, partially offset by higher operating costs at Central Hudson and increased holding company finance costs.
Fortis Inc. (TSX/NYSE: FTS) ha riportato risultati solidi per il terzo trimestre del 2024, con utili netti di $420 milioni ($0.85 per azione), in aumento rispetto ai $394 milioni ($0.81 per azione) del terzo trimestre del 2023. L'azienda ha annunciato un piano di capitale da $26 miliardi per il 2025-2029, prevedendo una crescita media annuale della base tariffaria del 6,5%. Si prevede che le spese in conto capitale per il 2024 raggiungano $5.2 miliardi, con $3.6 miliardi già investiti entro settembre. Il Consiglio ha dichiarato un aumento del 4,2% nel dividendo del quarto trimestre, segnando 51 anni consecutivi di aumenti del dividendo. La crescita è stata sostenuta dall'espansione della base tariffaria in tutto il settore dei servizi pubblici e da solidi utili in Arizona, parzialmente compensati da costi operativi più elevati presso Central Hudson e dall'aumento dei costi finanziari della holding.
Fortis Inc. (TSX/NYSE: FTS) reportó resultados sólidos en el tercer trimestre de 2024, con ganancias netas de $420 millones ($0.85 por acción), aumentando desde $394 millones ($0.81 por acción) en el tercer trimestre de 2023. La compañía anunció un plan de capital de $26 mil millones para 2025-2029, proyectando un crecimiento promedio anual de la base tarifaria del 6.5%. Se espera que los gastos de capital para 2024 alcancen $5.2 mil millones, con $3.6 mil millones invertidos hasta septiembre. La Junta declaró un aumento del 4.2% en el dividendo del cuarto trimestre, marcando 51 años consecutivos de aumentos en el dividendo. El crecimiento fue impulsado por la expansión de la base tarifaria en las utilidades y fuertes ganancias en Arizona, parcialmente compensadas por mayores costos operativos en Central Hudson y por costos financieros incrementales de la empresa matriz.
포르티스 주식회사 (TSX/NYSE: FTS)는 2024년 3분기 강력한 실적을 보고했으며, 순이익이 $420 백만 ($0.85 주당)으로 2023년 3분기의 $394 백만 ($0.81 주당)에서 증가했습니다. 이 회사는 2025-2029년을 위한 $26 억 자본 계획을 발표하며, 연평균 기준 요금 성장률은 6.5%로 예상하고 있습니다. 2024년 자본 지출은 $5.2 억에 이를 것으로 예상되며, 9월까지 $3.6 억이 투자되었습니다. 이사회는 4분기 배당금을 4.2% 인상한다고 발표하여 연속 51년 배당금 인상의 이정표를 세웠습니다. 성장은 유틸리티에서의 기준 요금 확대와 애리조나의 강력한 수익에 의해 주도되었으나, 센트럴 허드슨의 운영 비용 증가와 지주 회사의 금융 비용 증가로 일부 상쇄되었습니다.
Fortis Inc. (TSX/NYSE: FTS) a annoncé de solides résultats pour le troisième trimestre de 2024, avec un bénéfice net de $420 millions ($0,85 par action), en hausse par rapport à $394 millions ($0,81 par action) au troisième trimestre de 2023. L'entreprise a annoncé un plan d'investissement de $26 milliards pour 2025-2029, projetant une croissance moyenne annuelle de la base tarifaire de 6,5%. Les dépenses d'investissement pour 2024 devraient atteindre $5,2 milliards, avec $3,6 milliards déjà investis jusqu'en septembre. Le Conseil a déclaré une augmentation de 4,2% du dividende pour le quatrième trimestre, marquant 51 années consécutives d'augmentation des dividendes. La croissance a été soutenue par l'expansion de la base tarifaire dans les services publics et de solides bénéfices en Arizona, partiellement compensés par des coûts d'exploitation plus élevés à Central Hudson et des coûts financiers accrus pour la société holding.
Fortis Inc. (TSX/NYSE: FTS) hat starke Ergebnisse für das 3. Quartal 2024 berichtet, mit einem Nettogewinn von $420 Millionen ($0,85 pro Aktie), ein Anstieg von $394 Millionen ($0,81 pro Aktie) im 3. Quartal 2023. Das Unternehmen hat einen $26 Milliarden Kapitalplan für 2025-2029 angekündigt, der ein durchschnittliches jährliches Wachstumsrate der Nettorendite von 6,5% projiziert. Die Investitionsausgaben für 2024 dürften $5,2 Milliarden erreichen, wobei bis September $3,6 Milliarden investiert wurden. Der Vorstand erklärte eine Erhöhung der Dividende um 4,2% für das 4. Quartal, was 51 aufeinanderfolgende Jahre von Dividendenerhöhungen markiert. Das Wachstum wurde durch die Expansion der Basisrate in den Versorgungsunternehmen und starke Gewinne in Arizona vorangetrieben, teilweise ausgeglichen durch höhere Betriebskosten in Central Hudson und gestiegene Finanzkosten des Mutterunternehmens.
- Net earnings increased by $26 million to $420 million in Q3 2024
- Declared 4.2% dividend increase, marking 51 years of consecutive increases
- $26 billion capital plan for 2025-2029 with 6.5% projected rate base growth
- Additional US$3.0 billion potential investment opportunity in MISO transmission projects
- Strong earnings growth in Arizona from new customer rates at Tucson Electric Power
- Higher operating costs at Central Hudson
- Increased holding company finance costs
- $35 million regulatory liability to be recognized in Q4 2024 due to FERC order
- PSC Show Cause Order regarding gas-related explosion at Central Hudson
Insights
The Q3 results show solid financial performance with
Notable concerns include a
This news release constitutes a "Designated News Release" incorporated by reference in the prospectus supplement
dated September 19, 2023 to Fortis' short form base shelf prospectus dated November 21, 2022.
ST. JOHN'S, Newfoundland and Labrador, Nov. 05, 2024 (GLOBE NEWSWIRE) -- Fortis Inc. ("Fortis" or the "Corporation") (TSX/NYSE: FTS), a well-diversified leader in the North American regulated electric and gas utility industry, released its third quarter results.1
Highlights
- Third quarter net earnings of
$420 million or$0.85 per common share, up from$394 million or$0.81 per common share in 2023 - Adjusted net earnings per common share2 of
$0.85 , up from$0.84 in the third quarter of 2023 - Capital expenditures2 of
$3.6 billion through September; capital expenditures of$5.2 billion expected for 2024 - Released 2025-2029 capital plan of
$26 billion , representing6.5% average annual rate base growth - MISO's long-range transmission plan continues to advance; ITC expects at least US
$3.0 billion of investments for tranche 2.1 - Declared
4.2% increase in fourth quarter common share dividend
"Our strong third quarter results reflect the growth of our utilities as they continue to execute their capital programs," said David Hutchens, President and Chief Executive Officer, Fortis. "In September, our Board of Directors declared a
Net Earnings
The Corporation reported net earnings attributable to common equity shareholders ("Net Earnings") of
On a year-to-date basis, Net Earnings were
The change in earnings per share for both the third quarter and year-to-date periods also reflected an increase in the weighted average number of common shares outstanding, largely associated with the Corporation's dividend reinvestment plan.
Adjusted Net Earnings2
There were no adjustments to Net Earnings for the three and nine months ended September 30, 2024. For the three and nine months ended September 30, 2023, favourable adjustments totaling
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1 Financial information is presented in Canadian dollars unless otherwise specified.
2 Non-U.S. GAAP Financial Measures - Fortis uses financial measures that do not have a standardized meaning under generally accepted accounting principles in the United States of America ("U.S. GAAP") and may not be comparable to similar measures presented by other entities. Fortis presents these non-U.S. GAAP measures because management and external stakeholders use them in evaluating the Corporation's financial performance and prospects. Refer to the Non-U.S. GAAP Reconciliation provided herein.
Capital Expenditures2
Capital expenditures for 2024 are expected to be approximately
In August 2024, TEP announced the development of the Roadrunner Reserve 2 battery energy storage system facility. The 200 megawatt ("MW") system will store 800 MW hours of energy, enough to serve approximately 42,000 homes for four hours when deployed at full capacity. TEP will own and operate the system, which is included in the Corporation's five-year capital plan, has a total project cost of more than
The Corporation's new 2025-2029 capital plan totals
The five-year capital plan is expected to be funded primarily by cash from operations and regulated debt. Common equity proceeds are expected to be provided by the Corporation's dividend reinvestment plan, assuming current participation levels. The Corporation's
Significant opportunities remain beyond the five-year plan, including incremental investments associated with the MISO LRTP. Based on the final portfolio provided by MISO in September 2024, and subject to MISO Board approval anticipated in December 2024, ITC estimates at least US
Regulatory Updates
In August 2024, Central Hudson filed a general rate application with the New York State Public Service Commission ("PSC") requesting new customer rates effective July 1, 2025. The timing and outcome of this proceeding is unknown.
In August 2024, MISO concluded its variance analysis associated with LRTP tranche 1 projects in Iowa, reaffirming the original allocation of projects, including the allocation to ITC. As a result, work on all ITC tranche 1 projects in Iowa has resumed. The variance analysis was conducted by MISO as a result of the inability to construct LRTP tranche 1 projects in Iowa due to ongoing legal proceedings. Total tranche 1 investments of US
In October 2024, the Federal Energy Regulatory Commission ("FERC") issued an order in response to the 2022 D.C. Circuit Court decision vacating certain FERC orders that had established the methodology for setting the base return on equity ("ROE") for transmission owners operating in the MISO region, including ITC. The order revised the base ROE of ITC's MISO utilities from
In October 2024, the PSC issued a Show Cause Order which directed Central Hudson to explain why the PSC should not initiate a proceeding in connection with a gas-related explosion that occurred in November 2023. Central Hudson will file a response to the order within 30 days.
Outlook
Fortis continues to enhance shareholder value through the execution of its capital plan, the balance and strength of its diversified portfolio of regulated utility businesses, and growth opportunities within and proximate to its service territories. The Corporation's
Beyond the five-year capital plan, opportunities to expand and extend growth include: further expansion of the electric transmission grid in the U.S. to facilitate the interconnection of cleaner energy, transmission investments associated with the MISO LRTP tranches 1, 2.1 and 2.2 as well as regional transmission in New York; climate adaptation and grid resiliency investments; renewable gas solutions and liquefied natural gas infrastructure in British Columbia; and the acceleration of cleaner energy infrastructure and load growth investments across our jurisdictions.
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3 Calculated using a constant United States dollar-to-Canadian dollar exchange rate.
Fortis expects its long-term growth in rate base will drive earnings that support dividend growth guidance of 4
Fortis is on track to achieve its corporate-wide targets to reduce direct greenhouse gas ("GHG") emissions by
| Non-U.S. GAAP Reconciliation | |||||||||||||
| Periods ended September 30 | Quarter | Year-to-Date | |||||||||||
| ($ millions, except earnings per share) | 2024 | 2023 | Variance | 2024 | 2023 | Variance | |||||||
| Adjusted Net Earnings | |||||||||||||
| Net Earnings | 420 | 394 | 26 | 1,210 | 1,125 | 85 | |||||||
| Adjusting items: | |||||||||||||
| Unrealized loss on mark-to-market of derivatives at Aitken Creek4 | — | 8 | (8 | ) | — | 18 | (18 | ) | |||||
| Revaluation of deferred income tax assets5 | — | 9 | (9 | ) | — | 9 | (9 | ) | |||||
| Adjusted Net Earnings | 420 | 411 | 9 | 1,210 | 1,152 | 58 | |||||||
| Adjusted net earnings per share ($) | 0.85 | 0.84 | 0.01 | 2.45 | 2.37 | 0.08 | |||||||
| Capital Expenditures | |||||||||||||
| Additions to property, plant and equipment | 1,248 | 952 | 296 | 3,383 | 2,797 | 586 | |||||||
| Additions to intangible assets | 52 | 31 | 21 | 142 | 122 | 20 | |||||||
| Adjusting item: | |||||||||||||
| Wataynikaneyap Transmission Power Project6 | — | 25 | (25 | ) | 29 | 109 | (80 | ) | |||||
| Capital Expenditures | 1,300 | 1,008 | 292 | 3,554 | 3,028 | 526 | |||||||
____________________
4 Represents the mark-to-market accounting of natural gas derivatives at Aitken Creek, net of income tax recovery of
5 Represents the revaluation of deferred income tax assets resulting from the reduction in the corporate income tax rate in the state of Iowa.
6 Represents Fortis'
About Fortis
Fortis is a well-diversified leader in the North American regulated electric and gas utility industry with 2023 revenue of
Forward-Looking Information
Fortis includes forward-looking information in this news release within the meaning of applicable Canadian securities laws and forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively referred to as "forward-looking information"). Forward-looking information reflects expectations of Fortis management regarding future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as anticipates, believes, budgets, could, estimates, expects, forecasts, intends, may, might, plans, projects, schedule, should, target, will, would, and the negative of these terms, and other similar terminology or expressions, have been used to identify the forward-looking information, which includes, without limitation: forecast capital expenditures for 2024 and 2025 through 2029; forecast rate base and rate base growth through 2029; targeted annual dividend growth through 2029; the expected impact of the disposition of Aitken Creek on earnings for the annual period; the nature, timing, benefits and expected costs of certain capital projects, including FortisBC Energy's Eagle Mountain Pipeline project, ITC's transmission projects associated with the MISO LRTP, TEP's Roadrunner Reserve 2 battery energy storage system facility and additional opportunities beyond the capital plan, including further expansion of the electric transmission grid in the U.S. to facilitate the interconnection of cleaner energy, transmission investments associated with the MISO LRTP tranches 1, 2.1 and 2.2 as well as regional transmission in New York, climate adaptation and grid resiliency investments, renewable gas solutions and liquefied natural gas infrastructure in British Columbia, and the acceleration of cleaner energy infrastructure and load growth investments across our jurisdictions; the expected timing, outcome and impact of legal and regulatory proceedings and decisions; the expected sources of funding for the capital plan, including the expected source of common equity proceeds; the expectation that long-term growth in rate base will drive earnings that support dividend growth guidance of 4
Forward-looking information involves significant risks, uncertainties and assumptions. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking information, including, without limitation: reasonable outcomes for legal and regulatory proceedings and the expectation of regulatory stability; the successful execution of the capital plan; no material capital project and financing cost overrun; sufficient human resources to deliver service and execute the capital plan; the realization of additional opportunities beyond the capital plan; no significant variability in interest rates; no material changes in the assumed U.S. dollar to Canadian dollar exchange rate; the continuation of current participation levels in the Corporation's dividend reinvestment plan; and the Board exercising its discretion to declare dividends, taking into account the business performance and financial condition of the Corporation. Fortis cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking information. For additional information with respect to certain risk factors, reference should be made to the continuous disclosure materials filed from time to time by the Corporation with Canadian securities regulatory authorities and the Securities and Exchange Commission. All forward-looking information herein is given as of the date of this news release. Fortis disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
Teleconference and Webcast to Discuss Third Quarter 2024 Results
A teleconference and webcast will be held on November 5, 2024 at 8:30 a.m. (Eastern) during which David Hutchens, President and Chief Executive Officer and Jocelyn Perry, Executive Vice President and Chief Financial Officer will discuss the Corporation's third quarter financial results.
Shareholders, analysts, members of the media and other interested parties are invited to listen to the teleconference via the live webcast on the Corporation's website, https://www.fortisinc.com/investor-relations/events-and-presentations.
Those members of the financial community in North America wishing to ask questions during the call are invited to participate toll free by calling 1.800.717.1738 while those outside of North America can participate by calling 1.289.514.5100. Please dial in 10 minutes prior to the start of the call. No passcode is required.
An archived audio webcast of the teleconference will be available on the Corporation's website two hours after the conclusion of the call until December 5, 2024. Please call 1.888.660.6264 or 1.289.819.1325 and enter passcode 33826#.
Additional Information
This news release should be read in conjunction with the Corporation's September 30, 2024 Interim Management Discussion and Analysis and Condensed Consolidated Financial Statements. This and additional information can be accessed at www.fortisinc.com, www.sedarplus.ca, or www.sec.gov.
A .pdf version of this press release is available at: http://ml.globenewswire.com/Resource/Download/911cd3c1-f0a9-43cd-9beb-7d9693c20deb
For more information, please contact:
| Investor Enquiries | Media Enquiries |
| Ms. Stephanie Amaimo | Ms. Karen McCarthy |
| Vice President, Investor Relations | Vice President, Communications & Government Relations |
| Fortis Inc. | Fortis Inc. |
| 248.946.3572 | 709.737.5323 |
| investorrelations@fortisinc.com | media@fortisinc.com |
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