NextEra Energy (NYSE:NEE) has reported a robust Q3 performance, with a 10.6% YoY increase in adjusted earnings per share and a 13.6% YoY growth in regulatory capital employed by its subsidiary, Florida Power & Light (FPL). The company, which intends to lead the decarbonization of the U.S. economy, also highlighted its renewable energy efforts and future plans during its recent earnings call.
Key takeaways from the call include:
- FPL's capital expenditures for Q3 stood at approximately $2.6 billion, with full-year 2023 capital investments projected to be between $9 billion and $9.5 billion.
- Energy Resources, another subsidiary, reported a 21% YoY increase in adjusted earnings and a record quarter for new renewables and storage origination.
- The company plans to issue project-level debt funding for its renewables backlog and a portion of its $12.8 billion term maturities.
- NextEra Energy Partners is reducing its growth rate from 12% to 6% and will focus on executing its transition plan, which includes selling its Texas natural gas pipeline portfolio and assets.
- NextEra Energy's foundations are rooted in FPL, which plans to add 20 gigawatts of solar over the next 10 years.
NextEra Energy's Energy Resources division emphasized its position as the leader in renewable energy in the U.S., holding a 20% market share in renewable energy origination. The company expects renewable energy penetration in the U.S. to double to over 30% by 2030, buoyed by its strong balance sheet and ability to finance at lower costs.
The company also discussed its asset recycling and cost reduction plans, aiming to achieve $3 billion in asset recycling. This includes projects sold to NextEra Energy Partners and third parties. The company is confident about sourcing tax equity financing and expects robust demand for renewables, particularly in the 2024-2026 timeframe, driven by increasing electrification and the cost-effectiveness of renewables.
Addressing supply chain issues, John Ketchum, a representative of the company, stated that the situation has improved significantly. He confirmed that the company has a substantial inventory of grid-level equipment and is prepared to offer it as a solution if needed. The company's inventories are separate for NextEra Energy Resources and FPL.
The company is also awaiting additional details from the Public Service Commission (PSC) regarding a settlement agreement after the Florida State Supreme Court requested more information. The PSC is expected to provide the details in the first quarter of next year, following a similar process to a previous Duke case.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.