Eversource(US:ES)2024-11-06 19:28Financial Performance - Eversource reported a loss of $118.1 million, or $0.33 per share, in Q3 2024, compared to earnings of $339.7 million, or $0.97 per share, in Q3 2023[108]. - Year-to-date 2024 results include an after-tax loss on offshore wind investments of $524.0 million, or $1.48 per share, while 2023 included an impairment charge of $331.0 million, or $0.95 per share[108]. - Non-GAAP earnings for Q3 2024 were $405.9 million, or $1.13 per share, and $1.26 billion, or $3.56 per share, for the first nine months of 2024[108]. - Eversource updated its 2024 non-GAAP earnings guidance to a range of $4.52 to $4.60 per share, excluding impacts from offshore wind project sales[108]. - Eversource reported a net loss attributable to common shareholders of $118.1 million in Q3 2024, a decrease of $457.8 million compared to net income of $339.7 million in Q3 2023[138]. Cash Flow and Debt Management - Cash flows from operating activities totaled $1.52 billion in the first nine months of 2024, up from $1.17 billion in the same period of 2023[108]. - Eversource issued $4.40 billion in new long-term debt and repaid $1.26 billion of long-term debt in the first nine months of 2024[108]. - Cash and cash equivalents increased to $97.9 million as of September 30, 2024, compared to $53.9 million as of December 31, 2023[108]. - Eversource's available borrowing capacity under commercial paper programs was $1.79 billion as of September 30, 2024[108]. - Eversource parent has a $2.00 billion commercial paper program, with $322.0 million outstanding as of September 30, 2024[117]. Segment Performance - Electric distribution segment earnings increased by $30.2 million in Q3 2024 compared to Q3 2023, driven by higher revenues from base distribution rate increases and lower operations and maintenance expenses[112]. - Electric transmission segment earnings rose by $14.6 million in Q3 2024 and $64.2 million in the first nine months of 2024, attributed to a higher transmission rate base from ongoing infrastructure investments[113]. - Natural gas distribution segment losses decreased by $3.5 million in Q3 2024 compared to Q3 2023, primarily due to higher revenues from capital tracking mechanisms and a lower effective tax rate[113]. - Water distribution segment earnings increased by $7.1 million in Q3 2024, mainly due to after-tax benefits from a rate case decision and revenues from a water company acquisition[113]. Capital Expenditures and Investments - Eversource's total capital expenditures for the first nine months of 2024 reached $3.40 billion, compared to $3.21 billion in the same period of 2023, with significant investments in infrastructure and operations[123]. - Electric transmission capital expenditures increased to $998.3 million in the first nine months of 2024, up from $953.5 million in the same period of 2023[124]. - The company paid cash dividends totaling $745.2 million in the first nine months of 2024, compared to $688.9 million in the same period of 2023[120]. - Eversource's investments in property, plant, and equipment for the first nine months of 2024 were $3.29 billion, with significant allocations for maintaining and improving infrastructure[123]. Regulatory and Rate Adjustments - NSTAR Electric's Electric Sector Modernization Plan was approved, involving incremental capital investment of $608 million and incremental expenses of $211 million from 2025 to 2029[110]. - NSTAR Electric submitted a PBR Adjustment filing for a $56 million increase to base distribution rates, effective January 1, 2025, which includes a $35 million inflation-based adjustment and a $21 million K-bar adjustment[135]. - PSNH received approval for a temporary annual base distribution rate increase of $61.2 million effective August 1, 2024, and is seeking a permanent increase of $181.9 million effective August 1, 2025[135]. Offshore Wind Investments - The company completed the sale of its 50 percent ownership share of Sunrise Wind for adjusted proceeds of $152 million and recognized an aggregate after-tax loss of $524 million from offshore wind investments[110]. - Eversource sold its 50% interest in offshore wind projects for a total of $745 million, resulting in an after-tax loss of $524 million in Q3 2024[127]. - The company recorded a pre-tax impairment charge of $1.77 billion in Q4 2023 related to its offshore wind investments, reflecting a decline in fair value[130]. - A tax equity investment of $528 million was made in South Fork Wind, expected to yield $459 million in investment tax credits and other tax benefits[127]. Revenue and Expense Trends - Operating revenues for Eversource in Q3 2024 were $3,063.2 million, an increase of $271.7 million compared to Q3 2023[138]. - Total operating expenses for Eversource in Q3 2024 were $2,450.8 million, an increase of $189.9 million compared to Q3 2023[138]. - Energy supply procurement costs decreased by $231.1 million for the three months ended and $1,086.8 million for the nine months ended[144]. - Total Purchased Power, Purchased Natural Gas and Transmission expenses were $250.7 million for the three months ended and $1,237.7 million for the nine months ended[144]. Tax and Interest Expenses - Income Tax Expense increased by $1.4 million to $142.4 million for the three-month period and by $31.2 million to $151.3 million for the nine-month period, primarily due to increased reserves related to offshore wind investment losses[151]. - Interest Expense increased by $34.7 million to $180.1 million for the three-month period and by $25.1 million to $164.9 million for the nine-month period due to new debt issuances and higher short-term borrowings[151].