Avangrid(AGR) - 2024 Q1 - Quarterly Results

AVANGRID Q1 2024 Financial Results Financial Highlights & Outlook Avangrid reported strong financial results for the first quarter of 2024, with significant year-over-year growth in both GAAP and non-GAAP adjusted earnings. Q1 2024 vs Q1 2023 Key Financial Metrics | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | GAAP Net Income | $351 million | $245 million | +43.3% | | GAAP EPS | $0.91 | $0.63 | +44.4% | | Adjusted Net Income | $341 million | $248 million | +37.5% | | Adjusted EPS | $0.88 | $0.64 | +37.5% | - The company affirmed its 2024 earnings and adjusted earnings outlook of $2.17-$2.32 per share[4] - Key operational achievements include powering up the Vineyard Wind 1 project, submitting multiple proposals for New England Wind offshore projects, and executing 251 MW of new onshore wind PPAs[3][4] Segment Performance Both the Networks and Renewables segments delivered significant earnings growth in the first quarter of 2024 compared to the prior year. Networks The Networks segment's earnings increased by 37% year-over-year, primarily driven by the successful execution of existing multi-year rate plans in New York and Maine. Networks Q1 Financial Performance | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Earnings | $268 million | $195 million | +$73M | | EPS | $0.69 | $0.51 | +$0.18 | - The positive results were primarily impacted by the execution of existing rate plans[4] Renewables The Renewables segment's earnings nearly doubled, increasing by 94% year-over-year. Renewables Q1 Financial Performance | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Earnings | $95 million | $49 million | +$46M | | EPS | $0.24 | $0.13 | +$0.11 | - Results were primarily impacted by strong balancing resource performance and increased pricing, partially offset by lower production[5] Financial Statements The condensed consolidated financial statements detail the company's performance, showing a decrease in operating revenues but a significant increase in operating and net income due to lower operating expenses. Condensed Consolidated Statements of Income For Q1 2024, Avangrid's operating revenues were $2.42 billion, a slight decrease from $2.47 billion in Q1 2023, but operating income and net income significantly increased. Q1 2024 Condensed Consolidated Statement of Income (in Millions) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Operating Revenues | $2,417 | $2,466 | | Total Operating Expenses | $2,010 | $2,201 | | Operating Income | $407 | $265 | | Income Before Income Tax | $342 | $197 | | Net Income Attributable to Avangrid, Inc. | $351 | $245 | | Earnings per Common Share, Diluted | $0.91 | $0.63 | Reconciliation of Non-U.S. GAAP Financial Measures Avangrid reconciled its GAAP Net Income of $351 million to a non-GAAP Adjusted Net Income of $341 million for Q1 2024, primarily by excluding mark-to-market earnings and accelerated depreciation. Reconciliation of GAAP to Adjusted Net Income (in Millions) | Description | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | GAAP Net Income | $351 | $245 | | Mark-to-market earnings - Renewables | ($17) | $4 | | Accelerated depreciation from repowering | $3 | — | | Income tax impact of adjustments | $4 | ($1) | | Adjusted Net Income | $341 | $248 | Reconciliation of GAAP to Adjusted EPS | Description | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | GAAP Earnings Per Share | $0.91 | $0.63 | | Mark-to-market earnings - Renewables | ($0.05) | $0.01 | | Accelerated depreciation from repowering | $0.01 | — | | Income tax impact of adjustments | $0.01 | ($0.00) | | Adjusted Earnings Per Share | $0.88 | $0.64 | Supporting Information This section provides important context, including the company's definition and rationale for using non-GAAP financial measures and a detailed list of forward-looking statements and associated risks. Forward Looking Statements This section cautions that the report contains forward-looking statements based on current management beliefs and expectations, highlighting numerous risks and uncertainties that could cause actual results to differ materially. - Forward-looking statements are not historical facts and are based upon current reasonable beliefs, expectations, and assumptions of management[7] - Key risks include actions of regulatory agencies, cost recovery, economic conditions like inflation, impacts of climate change, geopolitical instability, and the ability to complete capital projects[8][9] Use of Non-U.S. GAAP Financial Measures Avangrid uses non-GAAP measures like adjusted net income and adjusted EPS to supplement its GAAP results, believing these measures aid in analyzing profitability and comparing performance. - Non-GAAP measures are used internally to establish budgets, manage the business, and evaluate financial performance[10] - Adjusted net income is defined as net income excluding mark-to-market earnings and accelerated depreciation from repowering wind farms[11] - Investors are cautioned that non-GAAP measures are not a substitute for U.S. GAAP financial information and should be considered supplementary[12]