Company Announcements

HARTFORD, Conn. & BOSTON--(BUSINESS WIRE)--Nov. 2, 2021-- Eversource Energy (NYSE: ES) today reported earnings of $283.2 million, or $0.82 per share, in the third quarter of 2021, compared with earnings of $346.3 million, or $1.01 per share, in the third quarter of 2020. In the first nine months of 2021, Eversource Energy earnings totaled $913.8 million, or $2.65 per share, compared with earnings of $933.2 million, or $2.76 per share, in the first nine months of 2020.

Results for both years include acquisition-related charges primarily related to the October 2020 acquisition of the assets of Columbia Gas of Massachusetts. Those after-tax charges totaled $4.3 million in the third quarter of 2021 and $17.3 million in the first nine months of 2021, compared with charges of $5.3 million in the third quarter of 2020 and $12.8 million in the first nine months of 2020.

Additionally, first and third quarter 2021 results include after-tax charges related to the settlement of multiple regulatory dockets concerning Eversource’s subsidiary, The Connecticut Light and Power Company (CL&P). Those after-tax charges totaled $63.2 million in the third quarter of 2021 and $85.8 million through the first nine months of 2021. Excluding the acquisition and settlement charges noted above, Eversource earned $350.7 million1, or $1.02 per share1, in the third quarter of 2021 and $1,016.9 million1, or $2.95 per share1, in the first nine months of 2021.

Eversource Energy today reaffirmed its previously disclosed 2021 earnings per share (EPS) projection of $3.81 to $3.93 per share. That range excludes all of the charges noted above. Eversource Energy also today reaffirmed its long-term EPS growth rate from its existing regulated businesses in the upper half of 5-7 percent, using the $3.64 per share1 earned in 2020 as a base.

“Eversource’s 9,300 dedicated employees continue to rise to the challenges of the ongoing pandemic, economic uncertainty and damaging storms – including an incredible response to last week’s Nor’easter that brought destructive, hurricane-force winds to Southeastern Massachusetts,” said Joe Nolan, Eversource President and Chief Executive Officer. “We have resolved some significant regulatory uncertainties, made considerable progress with our partner Ørsted on siting more than 1,750 megawatts of offshore wind, and solidified our standing as one of the nation’s most sustainable utilities.”

Electric Transmission

Eversource Energy’s transmission segment earned $139.4 million in the third quarter of 2021 and $412.4 million in the first nine months of 2021, compared with earnings of $125.6 million in the third quarter of 2020 and $381.8 million in the first nine months of 2020. Transmission segment results improved due to a higher level of investment in Eversource’s electric transmission system.

Electric Distribution

Eversource Energy’s electric distribution segment, excluding the CL&P charges noted above, earned $213.6 million1 in the third quarter of 2021 and $451.2 million1 in the first nine months of 2021, compared with earnings of $205.5 million in the third quarter of 2020 and $450.6 million in the first nine months of 2020. Improved third-quarter results were due primarily to higher revenues, offset by higher operation and maintenance expense, depreciation, interest, and property taxes.

Natural Gas Distribution

Eversource Energy’s natural gas distribution segment lost $22 million in the third quarter of 2021 and earned $129.6 million in the first nine months of 2021, compared with losses of $15.4 million in the third quarter of 2020 and earnings of $73.3 million in the first nine months of 2020. Lower third-quarter results and higher year-to-date results were primarily due to the addition of natural gas assets acquired from Columbia Gas of Massachusetts, most of which are now held by Eversource Gas Company of Massachusetts.

Water Distribution

Eversource’s water distribution segment earned $17.5 million in the third quarter of 2021 and $30 million in the first nine months of 2021, compared with earnings of $23.1 million in the third quarter of 2020 and $35.6 million in the first nine months of 2020. Lower third-quarter results were primarily due to the absence of gains from the 2020 sale of the water system around Hingham, Massachusetts.

Eversource Parent and Other Companies

Eversource Energy parent and other companies, excluding acquisition and transition-related costs, earned $2.2 million1 in the third quarter of 2021 and lost $6.3 million1 in the first nine months of 2021, compared with earnings of $12.8 million1 in the third quarter of 2020 and $4.7 million1 in the first nine months of 2020. Lower earnings primarily reflect a higher effective tax rate.

The following table reconciles 2021 and 2020 third quarter and first nine months earnings per share:

 

 

Third Quarter

First Nine Months

2020

Reported EPS

$1.01

 

$2.76

 

 

Higher electric transmission earnings in 2021, net of dilution

0.04

 

0.07

 

Addition of Eversource Gas Co. of MA results and higher natural gas revenues in 2021, offset by higher depreciation, O&M, property tax expense and dilution at the natural gas segment

(0.02

)

 

0.15

 

Higher electric distribution revenues in 2021, offset by higher O&M, depreciation, property taxes and interest expense at the electric distribution segment (ex. storms)

 

0.03

0.03

 

Higher storm-related expense in 2021

(0.01

)

(0.05

)

 

Absence of Hingham-related benefits in 2020 at Aquarion

(0.02

)

(0.02

)

 

Parent & Other, including a higher effective income tax rate

(0.02

)

(0.03

)

 

CL&P regulatory settlement charges

(0.19

)

(0.25

)

 

Charges related to acquisitions in 2021, compared with 2020

0.00

 

(0.01

)

2021

Reported EPS

$0.82

 

$2.65

 

Financial results by segment for the third quarter and first nine months of 2021 and 2020 are noted below:

Three months ended:

(in millions, except EPS)

September 30,

2021

September 30,

2020

Increase/

(Decrease)

2021 EPS1

Electric Transmission

$139.4

 

$125.6

 

$13.8

 

$0.40

 

Electric Distribution, ex. settlement1

213.6

 

205.5

 

8.1

 

0.62

 

Natural Gas Distribution

(22.0

)

(15.4

)

(6.6

)

(0.06

)

Water Distribution

17.5

 

23.1

 

(5.6

)

0.05

 

Eversource Parent and Other Companies1

2.2

 

12.8

 

(10.6

)

0.01

 

Charges related to regulatory settlement

(63.2

)

0.0

 

(63.2

)

(0.19

)

Charges related to acquisitions

(4.3

)

(5.3

)

1.0

 

(0.01

)

Reported Earnings

$283.2

 

$346.3

 

($63.1

)

$0.82

 

Nine months ended:

(in millions, except EPS)

September 30,

2021

September 30,

2020

Increase/

(Decrease)

 

2021 EPS1

Electric Transmission

$412.4

 

$381.8

 

$30.6

 

$1.20

 

Electric Distribution, ex. settlement1

451.2

 

450.6

 

0.6

 

1.31

 

Natural Gas Distribution

129.6

 

73.3

 

56.3

 

0.37

 

Water Distribution

30.0

 

35.6

 

(5.6

)

0.09

 

Eversource Parent and Other Companies1

(6.3

)

4.7

 

(11.0

)

(0.02

)

Charges related to regulatory settlement

(85.8

)

0.0

 

(85.8

)

(0.25

)

Charges related to acquisitions

(17.3

)

(12.8

)

(4.5

)

(0.05

)

Reported Earnings

$913.8

 

$933.2

 

($19.4

)

$2.65

 

Eversource Energy has approximately 344 million common shares outstanding and operates New England’s largest energy delivery system. It serves approximately 4.3 million electric, natural gas and water customers in Connecticut, Massachusetts and New Hampshire.

Note: Eversource Energy will webcast a conference call with senior management on November 3, 2021, beginning at 9 a.m. Eastern Time. The webcast and associated slides can be accessed through Eversource Energy’s website at www.eversource.com.

1 All per-share amounts in this news release are reported on a diluted basis. The only common equity securities that are publicly traded are common shares of Eversource Energy. The earnings and EPS of each business do not represent a direct legal interest in the assets and liabilities of such business, but rather represent a direct interest in Eversource Energy's assets and liabilities as a whole. EPS by business is a financial measure not recognized under generally accepted accounting principles (non-GAAP) that is calculated by dividing the net income or loss attributable to common shareholders of each business by the weighted average diluted Eversource Energy common shares outstanding for the period. Earnings discussions also include non-GAAP financial measures referencing 2021 earnings and EPS excluding charges at CL&P related to a settlement agreement that included refunds to customers and funding of various customer assistance initiatives and a storm performance penalty imposed on CL&P by PURA and 2021 and 2020 earnings and EPS excluding certain acquisition and transition costs. Eversource Energy uses these non-GAAP financial measures to evaluate and provide details of earnings results by business and to more fully compare and explain 2021 and 2020 results without including these items. This information is among the primary indicators management uses as a basis for evaluating performance and planning and forecasting of future periods. Management believes the impacts of the CL&P settlement agreement, the storm performance penalty imposed on CL&P by PURA, and acquisition and transition costs are not indicative of Eversource Energy’s ongoing costs and performance. Management views these charges as not directly related to the ongoing operations of the business and therefore not an indicator of baseline operating performance. Due to the nature and significance of the effect of these items on net income attributable to common shareholders and EPS, management believes that the non-GAAP presentation is a more meaningful representation of Eversource Energy’s financial performance and provides additional and useful information to readers in analyzing historical and future performance of the business. These non-GAAP financial measures should not be considered as alternatives to Eversource Energy’s consolidated net income attributable to common shareholders or EPS determined in accordance with GAAP as indicators of Eversource Energy’s operating performance.

This document includes statements concerning Eversource Energy’s expectations, beliefs, plans, objectives, goals, strategies, assumptions of future events, future financial performance or growth and other statements that are not historical facts. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, readers can identify these forward-looking statements through the use of words or phrases such as “estimate,” “expect,” “anticipate,” “intend,” “plan,” “project,” “believe,” “forecast,” “should,” “could” and other similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results or outcomes to differ materially from those included in the forward-looking statements. Factors that may cause actual results to differ materially from those included in the forward-looking statements include, but are not limited to: cyberattacks or breaches, including those resulting in the compromise of the confidentiality of our proprietary information and the personal information of our customers; disruptions in the capital markets or other events that make our access to necessary capital more difficult or costly; the negative impacts of the novel coronavirus (COVID-19) pandemic, including any new or emerging variants, on our customers, vendors, employees, regulators, and operations; changes in economic conditions, including impact on interest rates, tax policies, and customer demand and payment ability; ability or inability to commence and complete our major strategic development projects and opportunities; acts of war or terrorism, physical attacks or grid disturbances that may damage and disrupt our electric transmission and electric, natural gas, and water distribution systems; actions or inaction of local, state and federal regulatory, public policy and taxing bodies; substandard performance of third-party suppliers and service providers; fluctuations in weather patterns, including extreme weather due to climate change; changes in business conditions, which could include disruptive technology or development of alternative energy sources related to our current or future business model; contamination of, or disruption in, our water supplies; changes in levels or timing of capital expenditures; changes in laws, regulations or regulatory policy, including compliance with environmental laws and regulations; changes in accounting standards and financial reporting regulations; actions of rating agencies; and other presently unknown or unforeseen factors.

Other risk factors are detailed in Eversource Energy’s reports filed with the Securities and Exchange Commission (SEC). They are updated as necessary and available on Eversource Energy’s website at www.eversource.com and on the SEC’s website at www.sec.gov. All such factors are difficult to predict and contain uncertainties that may materially affect Eversource Energy’s actual results, many of which are beyond our control. You should not place undue reliance on the forward-looking statements, as each speaks only as of the date on which such statement is made, and, except as required by federal securities laws, Eversource Energy undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events.

EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

 

 

 

 

 

For the Three Months Ended September 30,

 

For the Nine Months Ended September 30,

(Thousands of Dollars, Except Share Information)

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Operating Revenues

$

2,461,199

 

 

$

2,343,642

 

 

$

7,409,577

 

 

$

6,670,497

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

Purchased Power, Fuel and Transmission

880,639

 

 

806,254

 

 

2,529,217

 

 

2,312,957

 

Operations and Maintenance

417,470

 

 

332,031

 

 

1,294,159

 

 

1,006,148

 

Depreciation

276,846

 

 

244,453

 

 

822,197

 

 

721,179

 

Amortization

45,236

 

 

57,515

 

 

158,860

 

 

130,687

 

Energy Efficiency Programs

143,796

 

 

145,047

 

 

460,814

 

 

408,794

 

Taxes Other Than Income Taxes

213,881

 

 

197,112

 

 

623,827

 

 

556,726

 

Total Operating Expenses

1,977,868

 

 

1,782,412

 

 

5,889,074

 

 

5,136,491

 

Operating Income

483,331

 

 

561,230

 

 

1,520,503

 

 

1,534,006

 

Interest Expense

147,962

 

 

134,066

 

 

431,162

 

 

403,067

 

Other Income, Net

43,768

 

 

29,218

 

 

124,588

 

 

83,565

 

Income Before Income Tax Expense

379,137

 

 

456,382

 

 

1,213,929

 

 

1,214,504

 

Income Tax Expense

94,091

 

 

108,242

 

 

294,461

 

 

275,621

 

Net Income

285,046

 

 

348,140

 

 

919,468

 

 

938,883

 

Net Income Attributable to Noncontrolling Interests

1,880

 

 

1,880

 

 

5,639

 

 

5,639

 

Net Income Attributable to Common Shareholders

$

283,166

 

 

$

346,260

 

 

$

913,829

 

 

$

933,244

 

 

 

 

 

 

 

 

 

Basic Earnings Per Common Share

$

0.82

 

 

$

1.01

 

 

$

2.66

 

 

$

2.77

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Common Share

$

0.82

 

 

$

1.01

 

 

$

2.65

 

 

$

2.76

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares Outstanding:

 

 

 

 

 

 

 

Basic

344,023,846

 

 

343,076,614

 

 

343,848,905

 

 

337,375,172

 

Diluted

344,669,782

 

 

343,773,602

 

 

344,480,056

 

 

338,424,100

 

The data contained in this report is preliminary and is unaudited. This report is being submitted for the sole purpose of providing information to shareholders about Eversource Energy and Subsidiaries and is not a representation, prospectus, or intended for use in connection with any purchase or sale of securities.

Jeffrey R. Kotkin
(860) 665-5154

Source: Eversource Energy