Emera Reports 2024 First Quarter Financial Results
Summary
-
Quarterly adjusted earnings per share (“EPS”) (1) of
$0.76 decreased$0.23 or 23% compared to$0.99 in Q1 2023. The primary drivers of this change are:-
the impact of milder weather at
Tampa Electric during the quarter; - lower contributions from New Mexico Gas Company’s (“NMGC”) asset management agreements, which were very strong in Q1 last year;
-
lower earnings at
Nova Scotia Power (“NSPI”) due to an increase in OM&G costs focused on reliability and customer experience, as well as a one-time regulatory disallowance; -
lower contributions from marketing and trading at
Emera Energy Services (“EES”), which had a very strong Q1 last year; - higher corporate costs due to mark-to-market losses related to long-term compensation-related hedges;
-
partially offset by higher contributions from
Peoples Gas (“PGS”), which benefited from new rates and strong customer growth – delivering its highest quarterly earnings ever.
-
the impact of milder weather at
-
Quarterly reported net income decreased by
$353 million to$207 million compared to$560 million in Q1 2023 and quarterly reported EPS decreased by$1.34 to$0.73 from$2.07 in Q1 2023. Both decreases were primarily due to mark-to-market (“MTM”) gains at EES in 2023.
“While weather and an unusually strong prior-year quarter contributed to lower comparative adjusted earnings for the quarter, our core utilities remain on track to deliver solid earnings results for the full year,” said
Q1 2024 Financial Results
Q1 2024 reported net income was
Q1 2024 adjusted net income(1) was
(1) See “Non-GAAP Financial Measures and Ratios” noted below and “Segment Results and Non-US GAAP Reconciliation” below for reconciliation to nearest USGAAP measure. |
Consolidated Financial Review
The following table highlights significant changes in adjusted net income attributable to common shareholders from 2023 to 2024.
For the |
Three months ended |
||
millions of Canadian dollars |
|
|
|
Adjusted net income – 2023 1,2 |
|
$ |
268 |
Operating Unit Performance |
|
|
|
Decreased earnings at TEC due to unfavourable weather, increased OM&G and higher depreciation, partially offset by customer growth and new base rates |
|
|
(22) |
Decreased earnings at NMGC due to lower asset optimization revenues and higher operating, maintenance and general expenses (“OM&G”) |
|
|
(14) |
Decreased earnings at NSPI due to increased OM&G, partially offset by higher revenues due to new rates and increased residential sales volumes |
|
|
(11) |
Decreased earnings at EES due to less favourable market conditions |
|
|
(10) |
Increased earnings at PGS due to new base rates, partially offset by higher interest expense, OM&G and depreciation expense |
|
|
21 |
Increased income from equity investments at NSPML primarily due to the Maritime Link holdback recognized in Q1 2023 |
|
|
5 |
Corporate |
|
|
|
Increased OM&G, pre-tax, primarily due to timing of long-term compensation hedges |
|
|
(19) |
Increased interest expense, pre-tax, due to increased total debt |
|
|
(9) |
Increased income tax recovery due to increased losses before provision for income taxes |
|
|
7 |
Adjusted net income – 2024 1,2 |
|
$ |
216 |
1 See “Non-GAAP Financial Measures and Ratios” noted below and “Segment Results and Non-GAAP Reconciliation" for reconciliation to nearest USGAAP measure. |
|||
2 Excludes the effect of MTM adjustments, net of tax. |
Segment Results and Non-GAAP Reconciliation
For the |
|
Three months ended |
||
millions of Canadian dollars (except per share amounts) |
|
2024 |
|
2023 |
Adjusted net income 1,2 |
|
|
|
|
Florida Electric Utility |
$ |
85 |
$ |
107 |
|
|
87 |
|
92 |
|
|
98 |
|
94 |
Other |
|
9 |
|
4 |
Other3 |
|
(63) |
|
(29) |
Adjusted net income1,2 |
$ |
216 |
$ |
268 |
MTM (loss) gain, after-tax4 |
|
(9) |
|
292 |
Net income attributable to common shareholders |
$ |
207 |
$ |
560 |
EPS (basic) |
$ |
0.73 |
$ |
2.07 |
Adjusted EPS (basic)1,2 |
$ |
0.76 |
$ |
0.99 |
1 See “Non-GAAP Financial Measures and Ratios” noted below. |
||||
2 Excludes the effect of MTM adjustments. |
||||
3 Primarily due to timing of long-term incentive compensation at corporate, higher corporate interest expense and lower contributions from EES, partially offset by increased income tax recovery at corporate. |
||||
4 Net of income tax recovery of |
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 the Emera’s Q1 2024 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/20240512497080/en/
Investor Relations
902-474-2126
dave.bezanson@emera.com
Media
902-222-2683
media@emera.com
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