Renewables NextEra Energy sees lower 2Q earnings

 

NextEra Energy, the renewable energy company with wind farms in Oklahoma, recorded lower revenue in its renewables and electric utility businesses during the second quarter. But the drop wasn’t enough to take the wind out of the company’s economic sails.

The company, in the midst of a fight with residents in Enid where it wants to build a huge solar farm still posted a profit of $1.62 billion or 79 cents a share, down from the $2.8 billion and $1.38 a share in the same quarter one year earlier.

But, on an adjusted basis, the company’s second-quarter earnings were $1.968 billion or 96 cents a share compared to $1.777 billion and 88 cents a share in the second quarter of 2023.

John Ketchum, chairman, president and chief executive officer still felt the company had strong results with the 9% increase in adjusted earnings per share year-over-year.

” At NextEra Energy Resources, we had our second-best origination quarter ever, adding more than 3,000 megawatts
of new renewables and storage projects to our backlog, including 860 megawatts which come from agreements with Google to meet its data center power demand,” he stated.

“We will be disappointed if we are not able to deliver financial results at or near the top of our adjusted earnings per share expectations ranges each year through 2027, while maintaining our strong balance sheet and credit ratings.”

The company is standing by its long-term financial expectations which were extended last month.

For 2024, NextEra Energy continues to expect adjusted earnings per share to be in the range of $3.23 to $3.43. For 2025, 2026 and 2027, NextEra Energy expects adjusted earnings per share to be in the ranges of $3.45 to $3.70, $3.63 to $4.00 and $3.85 to $4.32, respectively.

NextEra’s latetst renewables project is in Garfield County where it plans a large solar farm, but residents are opposed to its location at the immediate southeast side of Enid. The solar farm is part of a 700-MW plan to provide electrical power to Western Farmers Electric Cooperative.

NextEra had originally planned to have the solar farm operational by the end of 2023 but its efforts have been stalled. In a 2019 announcement of providing power to WFEC, the company described the wind-solar-storage complex the first of its kind in the Southwest Power Pool electric grid system.

“With this combined facility, we can optimize and maximize the amount of low-cost, emissions-free electricity we provide, while helping Western Farmers diversify its power generation portfolio, reduce its dependence on fossil fuels and set a great example for others to follow,” said John Ketchum, president and CEO of NextEra Energy Resources in the 2019 press release.

Elsewhere, NextEra has the Ponderosa Wind I and II in Beaver County and the Minco wind farms in Caddo County.