Juno Beach, Fla.-based NextEra Energy Inc., the company that wants to buy Hawaiian Electric Industries Inc., said Thursday its fourth-quarter profit was $507 million, or 1.10 cents per share, compared with $884 million, or 2 cents per share, a year ago.
For all of 2015 the company reported a profit of $2.75 billion, or $6.06 per share, compared with $2.47 billion, or $5.60 per share, in 2014. Revenue rose to $17.49 billion from $17.02 billion.
Business roundtable backs NextEra deal
The Hawaii Business Roundtable announced support of NextEra Energy Inc.’s proposed $4.3 billion purchase of Hawaiian Electric Industries, the state’s largest electric utility, Thursday.
In a letter, the members said NextEra’s access to capital will help the state reach its 100 percent renewable-energy goals.
“A key part of creating a more prosperous future for our state is having the right energy partner willing and able to make the needed investments to ensure clean, reliable and affordable electricity in Hawaii,” the letter said. “NextEra has the capabilities, expertise, and the financial and technical resources to be that partner.”
Hawaii Business Roundtable also said the state should maintain an open business climate.
“To ensure the best foundation for economic opportunities and growth in Hawaii, we must cultivate a business friendly climate to attract the necessary investment that will benefit us and future generations,” the letter said.
—Kathryn Mykleseth / Star-Advertiser
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The company said renewable-energy investments helped boost profits in 2015, as it added 2,100 megawatts of contracted wind and solar projects.
NextEra Energy Chairman and Chief Executive Officer Jim Robo said the company delivered strong fourth-quarter results and exceeded its full-year expectations.
“NextEra Energy Resources had outstanding performance in 2015 for wind and solar development, marking its second most successful year ever for renewable origination performance,” Robo said in a news release. “We continue to believe that NextEra Energy Resources is well-positioned to capitalize on what is one of the most favorable environments for renewables development in recent history.”
On Dec. 3, 2014, NextEra said it planned to buy Hawaii’s largest electric utility for $4.3 billion. The sale still needs state regulator approval to move forward. The state Public Utilities Commission is in the process of deciding whether the sale is in the public interest, with hearings schedule to resume Monday. The original goal for a decision was June 2016, but regulators have said the long review might push the date further back.
Florida Power & Light Co., an electrical utility owned by NextEra Energy, said more customer accounts and increased energy use helped boost the subsidiary’s fourth-quarter earnings to $365 million from $286 million in the year-ago period.
During the fourth quarter, FPL averaged approximately 66,000 more customer accounts. FPL has more than 4.8 million customer accounts in total.
FPL’s annual earnings climbed to $1.65 billion, or 3.63 cents per share, from $1.52 billion, or 3.45 cents per share, in 2014.
“At FPL, we continued to invest in the business and had our best-ever year in terms of reliability,” Robo said. “FPL’s typical residential customer bill remains among the lowest in the nation and lower than it was a decade ago.”
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FOURTH-QUARTER NET
$507 million
YEAR-EARLIER NET
$884 million
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The company said it is seeking to increase base rates at FPL. The proposed adjustments would total about $13 a month, or about 43 cents per day. FPL said that its total typical residential customer bill would grow at about 2.8 percent per year, roughly the expected rate of inflation, from now through 2020.
“Earlier this month, FPL notified the Florida Public Service Commission that it expects to file a formal request in March for a four-year plan for new base rates,” Robo said. “The rate plan is being designed to keep costs down for customers over the long term, while supporting continued investments that advance affordable, clean energy and enhance service reliability for customers.”
NextEra Energy Resources, the subsidiary that builds utility-scale wind and solar systems, reported income for the fourth quarter of $156 million, down from $615 million for the fourth quarter of 2014.
Despite the drop in fourth-quarter earnings, NextEra Energy Resources’ profit for the year increased to $1.09 billion, or $2.41 cents per share, up from $989 million, or $2.25 cents per share, the year prior.
Wind and solar energy were major drivers for the energy business in 2015 as NextEra Energy Resources added 1,400 megawatts of wind and 700 megawatts of solar.
NextEra’s stock was up $1.57 Thursday to close at $108.30.
NextEra Energy has consolidated revenues of approximately $17.5 billion and approximately 46,300 megawatts of generating capacity.
