Emera Reports 2024 Third Quarter Financial Results
Highlights
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Increase in Adjusted Earnings Per Share1 (“Adjusted EPS”): Adjusted EPS increased by 8% or
$0.06 to$0.81 compared to adjusted EPS of$0.75 in Q3 2023.-
Customer growth at both
Florida utilities, and new base rates atPeoples Gas (“PGS”) resulted in higher contributions; - Corporate costs were lower, primarily due to the timing difference in the valuation of long-term incentive expense and related hedges;
-
These increases were partially offset by lower contributions from
Canadian Electric Utilities driven by the sale of the Labrador Island Link (“LIL”) inJune 2024 and lower contributions fromNova Scotia Power (“NSPI”) driven by an increase in reliability and customer experience-related operating costs.
-
Customer growth at both
-
Decrease in Reported Earnings Per Share (“EPS”): Reported EPS decreased by
$0.36 to$0.01 in Q3 2024, compared to$0.37 in Q3 2023. This decrease was primarily driven by charges related to the pending sale ofNew Mexico Gas Company (“NMGC”). -
Strengthened Financial Position: In late September, NSPI finalized a
$500 million federal loan guarantee with theGovernment of Canada and the Government ofNova Scotia . This guarantee provides important cost relief to electricity customers inNova Scotia and protects the overall financial health of the utility by way of a$500 million debt reduction. This builds on the Q3 announcement of theUS$1.252 billion pending sale of NMGC. -
Investing for the Future: Emera remains on track to fully deploy its
$2.9 billion capital plan in 2024, with two-thirds of new rate base investments committed to date. The investment plan remains focused on reliability and resiliency, grid modernization, renewable energy integration, technology innovations focused on cost efficiency and customer experience, and customer growth driven infrastructure expansion.
“Emera’s third quarter results were strong, with an 8 per cent increase in adjusted earnings per share over Q3 2023, principally driven by solid operational performance across the portfolio and particularly strong financial performance from our
Q3 2024 Financial Results
Q3 2024 reported net income was
Q3 2024 adjusted net income(1) was
Year-to-date Financial Results
Year-to-date reported net income was
Year-to-date adjusted net income(1) was
The year-to-date decrease in adjusted net income was primarily due to decreased earnings at NMGC,
The translation impact of a weaker CAD on US denominated earnings increased net income by
(1) See “Non-GAAP Financial Measures and Ratios” noted below and “Segment Results and Non-GAAP Reconciliation” below for reconciliation to nearest USGAAP measure. |
Segment Results and Non-GAAP Reconciliation
For the |
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Three months ended
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Nine months ended
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millions of Canadian dollars (except per share amounts) |
|
2024 |
|
2023 |
2024 |
2023 |
Adjusted net income 1,2 |
|
|
|
|
|
|
Florida Electric Utility |
$ |
252 |
$ |
228 |
524 |
512 |
|
|
26 |
|
38 |
155 |
179 |
|
|
38 |
|
23 |
180 |
155 |
Other |
|
10 |
|
17 |
27 |
31 |
Other3 |
|
(90) |
|
(102) |
(283) |
(243) |
Adjusted net income1,2 |
$ |
236 |
$ |
204 |
603 |
634 |
Charges related to the pending sale of NMGC, after-tax4,5 |
|
(225) |
|
- |
(225) |
- |
Gain on sale of LIL, after tax and transaction costs6 |
- |
|
- |
107 |
- |
|
MTM (loss) gain, after-tax7 |
|
(7) |
|
(103) |
(145) |
55 |
Net income attributable to common shareholders |
$ |
4 |
$ |
101 |
340 |
689 |
EPS (basic) |
$ |
0.01 |
$ |
0.37 |
1.18 |
2.53 |
Adjusted EPS (basic)1,2 |
$ |
0.81 |
$ |
0.75 |
2.10 |
2.33 |
1 See “Non-GAAP Financial Measures and Ratios” noted below. |
2 Excludes the charges related to the pending sale of NMGC, after-tax, the gain on sale, after tax and transaction costs of Emera’s LIL equity interest and the effect of MTM adjustments. |
3 Higher earnings quarter-over-quarter, primarily due to lower OM&G, partially offset by decreased income tax recovery, increased interest expense and lower contributions from |
4 Represents (i) |
5 Net of income tax recovery of |
6 Net of income tax expense of |
7 Net of income tax recovery of |
Consolidated Financial Review
The following table highlights significant year-over-year changes in adjusted net income attributable to common shareholders from 2023 to 2024.
|
|
|
|
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For the |
Three months ended |
Nine months ended |
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millions of Canadian dollars |
|
|
||
Adjusted net income – 2023 1,2 |
$ |
204 |
$ |
634 |
Operating Unit Performance |
|
|
|
|
Increased earnings at TEC due to higher revenues as a result of customer growth and new base rates, lower income tax expense and the impact of a weaker CAD, partially offset by unfavourable weather and higher depreciation. Year-over-year earnings was also partially offset by higher OM&G due to higher generation and transmission and distribution ("T&D") costs |
|
24 |
|
12 |
Increased earnings at PGS due to higher revenue from new base rates and customer growth, partially offset by increased depreciation, OM&G, interest expense and income tax expense |
|
15 |
|
47 |
Increased earnings quarter-over-quarter at NSPI due to lower OM&G. Decreased earnings year-over-year due to higher OM&G due to increased reliability initiatives, partially offset by higher revenue from increased residential sales volumes |
|
4 |
|
(12) |
Decreased earnings year-over-year at NMGC due to lower asset optimization revenues and increased OM&G, partially offset by lower income tax expense |
1 |
|
(18) |
|
Decreased income from equity investments due to the sale of LIL equity interest |
(15) |
|
(16) |
|
Decreased earnings at |
(5) |
(8) |
||
Decreased earnings at EES due to less favourable market conditions. Year-over-year decrease also reflects favourable hedging opportunities in Q1 2023 as a result of higher natural gas pricing |
(3) |
(13) |
||
Corporate |
||||
Decreased OM&G, pre-tax, primarily due to the timing difference in the valuation of long-term incentive expense and related hedges |
32 |
15 |
||
Increased preferred share dividends due to higher dividend rate for series B, C, and H preferred shares |
(2) |
(6) |
||
Increased interest expense, pre-tax, due to increased interest rates and increased total debt |
(6) |
(29) |
||
Decreased income tax recovery quarter-over-quarter due to decreased loss before provision for income taxes. Increased income tax recovery year-over-year due to increased loss before provision for income taxes |
(7) |
8 |
||
Other Variances |
(6) |
(11) |
||
Adjusted net income – 2024 1,2 |
$ |
236 |
$ |
603 |
1 See “Non-GAAP Financial Measures and Ratios” noted below and “Segment Results and Non-GAAP Reconciliation" for reconciliation to nearest USGAAP measure. |
2 Excludes the charges related to the pending sale of NMGC, after-tax, the gain on sale, after tax and transaction costs of Emera’s LIL equity interest and the effect of MTM adjustments. |
1 Non-GAAP Financial Measures and Ratios
Emera uses financial measures that do not have standardized meaning under USGAAP and may not be comparable to similar measures presented by other entities. Emera calculates the non-GAAP measures and ratios by adjusting certain GAAP measures for specific items. Management believes excluding these items better distinguishes the ongoing operations of the business. For further information on the non-GAAP financial measure, adjusted net income, and the non-GAAP ratio, adjusted EPS – basic, refer to the "Non-GAAP Financial Measures and Ratios" section of the Emera’s Q3 2024 MD&A which is incorporated herein by reference and can be found on SEDAR+ at www.sedarplus.ca. Reconciliation to the nearest GAAP measure is included in “Segment Results and Non-GAAP Reconciliation” above.
Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable securities laws. By its nature, forward-looking information requires Emera to make assumptions and is subject to inherent risks and uncertainties. These statements reflect Emera management’s current beliefs and are based on information currently available to Emera management. There is a risk that predictions, forecasts, conclusions and projections that constitute forward-looking information will not prove to be accurate, that Emera’s assumptions may not be correct and that actual results may differ materially from such forward-looking information. Additional detailed information about these assumptions, risks and uncertainties is included in Emera’s securities regulatory filings, including under the heading “Business Risks and Risk Management” in Emera’s annual Management’s Discussion and Analysis, and under the heading “Principal Risks and Uncertainties” in the notes to Emera’s annual and interim financial statements, which can be found on SEDAR+ at www.sedarplus.ca.
Teleconference Call
The company will be hosting a teleconference today,
Analysts and other interested parties in
A live and archived audio webcast of the teleconference will be available on the Company's website, www.emera.com. A replay of the teleconference will be available on the Company’s website two hours after the conclusion of the call.
About Emera
Emera (TSX: EMA) is a leading North American provider of energy services headquartered in
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Investor Relations
902-474-2126
dave.bezanson@emera.com
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