Emera Reports 2023 Fourth Quarter and Annual Financial Results
Highlights
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Quarterly adjusted earnings per share (“EPS”)1 of
$0.63 decreased$0.30 compared to$0.93 in Q4 2022, with$0.17 of the decrease attributable to the recognition of a litigation award received in Q4 2022. Excluding the impact of the litigation award, quarterly adjusted EPS1 decreased$0.13 or 17% to$0.63 compared to$0.76 in Q4 2022. Quarterly reported EPS decreased$0.76 to$1.04 in Q4 2023 compared to$1.80 in Q4 2022 primarily due to higher after-tax mark-to-market (“MTM”) gains in 2022. -
For the year, adjusted EPS1 of
$2.96 decreased$0.24 compared to$3.20 in 2022. Excluding the impact of the litigation award recognized in the Q4 2022, adjusted EPS1 decreased$0.07 or 2% to$2.96 compared to$3.03 in 2022. Annual reported EPS of$3.57 was consistent with 2022 annual reported EPS of$3.56 -
Operating cash flow before changes in working capital increased by 104% to
$2.3 billion compared to$1.1 billion in 2022 due to the recovery of 2022 fuel and storm costs in 2023. -
$2.9 billion planned rate base investment in 2023 was successfully executed, including many reliability focused investments and cleaner energy projects like an additional 230 MWs of solar inFlorida bringing Tampa Electric’s total solar capacity to 1,255 MWs; the highest per customer in the state.
“Our fourth quarter was more challenging than anticipated, with unfavourable weather and higher interest rates impacting our performance. However, there were positives, including improved cash flow performance in the business this year and the average annual adjusted EPS growth of greater than 5% that we’ve delivered over the past three years,” said
Q4 2023 Financial Results
Q4 2023 reported net income was
Q4 2023 adjusted net income1 was
Annual Financial Results
2023 reported net income was
2023 adjusted net income1 was
The translation impact of the change in foreign exchange (“FX”) rates on foreign denominated earnings increased reported 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 GAAP measure. |
Consolidated Financial Review
The following table highlights significant changes in adjusted net income attributable to common shareholders from 2022 to 2023. |
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For the |
Three months ended |
Year ended |
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millions of Canadian dollars |
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|
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Adjusted net income – 2022 1,2 |
$ |
249 |
$ |
850 |
Operating Unit Performance |
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|
|
|
Increased earnings at NSPI due to new base rates and increased sales volumes, partially offset by higher OM&G, interest expense and depreciation |
|
17 |
|
10 |
Increased income from equity investments at NSPML quarter-over-quarter primarily due to Maritime Link holdback recognized in Q4 2022. Year-over-year also due to the partial reversal in Q3 2023 of the Maritime Link holdback recognized in 2022 |
|
4 |
|
10 |
Decreased earnings quarter-over-quarter at TEC due to increased interest expense, depreciation, state and municipal taxes, unfavourable weather, and higher OM&G, partially offset by new base rates and customer growth driving higher sales volumes. Increased earnings year-over-year due to new base rates, the impact of a weaker CAD and customer growth, partially offset by higher interest expense, depreciation, state and municipal taxes and unfavourable weather |
|
(9) |
|
31 |
Decreased earnings quarter-over-quarter at NMGC primarily due to lower asset optimization revenues and higher OM&G, partially offset by new base rates. Increased earnings year-over-year due to new base rates, partially offset by higher OM&G and interest expense |
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(11) |
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12 |
Decreased earnings at EES due to more favourable market conditions in 2022 |
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(21) |
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(22) |
Corporate |
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|
|
|
Decreased OM&G, pre-tax, due to timing of long-term compensation and related hedges |
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13 |
|
10 |
Increased interest expense, pre-tax, due to higher interest rates and higher debt levels |
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(9) |
|
(51) |
Decreased income tax recovery quarter-over-quarter primarily due to the impact of effective state tax rates |
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(10) |
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2 |
Litigation award, after tax and legal costs, in Q4 2022 |
|
(45) |
|
(45) |
Other Variances |
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(3) |
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2 |
Adjusted net income – 2023 1,2 |
$ |
175 |
$ |
809 |
1 See “Non-GAAP Financial Measures and Ratios” noted below and “Segment Results and Non-GAAP Reconciliation" for reconciliation to nearest GAAP measure. |
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2 Excludes the effect of MTM adjustments, net of tax, 2022 GBPC impairment charge and the impact of the 2022 NSPML unrecoverable costs. |
Segment Results and Non-GAAP Reconciliation
For the |
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Year ended |
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millions of Canadian dollars (except |
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per share amounts) |
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2023 |
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2022 |
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2023 |
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2022 |
Adjusted net income 1,2 |
|
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|
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|
Florida Electric Utility |
$ |
115 |
$ |
124 |
$ |
627 |
$ |
596 |
|
|
|
68 |
|
46 |
|
247 |
|
222 |
|
|
|
59 |
|
72 |
|
214 |
|
221 |
|
Other |
|
4 |
|
8 |
|
35 |
|
29 |
|
Other 5 |
|
(71) |
|
(1) |
|
(314) |
|
(218) |
|
Adjusted net income1,2 |
$ |
175 |
$ |
249 |
$ |
809 |
$ |
850 |
|
MTM gain, after-tax6 |
|
114 |
|
307 |
|
169 |
|
175 |
|
Impairment charge |
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- |
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(73) |
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- |
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(73) |
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NSPML unrecoverable costs7 |
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- |
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- |
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- |
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(7) |
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Net income attributable to common shareholders |
$ |
289 |
$ |
483 |
$ |
978 |
$ |
945 |
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EPS (basic) |
$ |
1.04 |
$ |
1.80 |
$ |
3.57 |
$ |
3.56 |
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Adjusted EPS (basic) 1,2 |
$ |
0.63 |
$ |
0.93 |
$ |
2.96 |
$ |
3.20 |
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1 See “Non-GAAP Financial Measures and Ratios” noted below. |
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2 Excludes the effect of MTM adjustments, GBPC impairment charge and the impact of the NSPML unrecoverable costs. |
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3 Excludes the impact of the NSPML unrecoverable costs. |
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4 Excludes the effect of the GBPC impairment charge and MTM adjustments. |
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5Excludes the effect of MTM adjustments. |
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6Net of income tax expense of |
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7 After-tax unrecoverable costs were recorded in “Income from equity investments” on Emera’s Consolidated Statements of Income. |
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 Emera’s Q4 2023 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
View source version on businesswire.com: https://www.businesswire.com/news/home/20240223204942/en/
Investor Relations
902-474-2126
dave.bezanson@emera.com
Media
902-222-2683
media@emera.com
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