Florida-based energy company NextEra Energy posted a net income of US$1,219 million in its Q3 2023 earnings call, a downturn of around US$400 million year-on-year as the company added “record” new renewables generation capacity to its backlog.
Its renewables generation business, NextEra Energy Resources, saw a net loss of US$230 million in Q3, down from net income of US$655 million in the equivalent period 2022. Its adjusted earnings were US$882 million, compared with US$729 million in Q3 2022.
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The period saw NextEra Energy Resources add 3,245MW of new renewables generation and storage capacity to its backlog, which it said was a “record” figure for a single quarter. “NextEra Energy Resources had its best renewables and storage origination quarter in its history,” said CEO John Ketchum.
Of this 3,245MW, 1,485MW were solar PV installations, 905MW storage, 400MW wind and 455MW wind repowering assets. In addition, just over 1GW of new projects have been placed into service since Q2.
For comparison, in Q1 NextEra Energy Resources added around 2,020MW of generation and storage capacity to its backlog, followed by 1,665MW in Q2.
One of NextEra’s largest backlog projects is the 400MW Sebree solar PV farm in Kentucky, for which it signed a 250MW power purchase agreement (PPA) with US steel manufacturer Nucor in August.
Florida Power & Light (FPL), NextEra’s electricity utility business, reported third-quarter 2023 net income of US$1,183 million, up just over US$100 million year-on-year from US$1,074 million. Capex for FPL was approximately US$2.6 billion in Q3, and the company said that full-year expenditure is expected to be between US$9-9.5 billion.
“NextEra Energy continued its strong execution during the third quarter and has delivered adjusted earnings per share growth of approximately 10.8% through three quarters,” Ketchum said. “FPL continues to execute against its well-established capital plan to enhance what we believe is one of the best customer value propositions in the industry. NextEra Energy Resources had its best renewables and storage origination quarter in its history, adding approximately 3,245 megawatts to its backlog, which now totals over 21 gigawatts, net of projects placed in service.
“We will be disappointed if we are not able to deliver financial results at or near the top of our adjusted earnings per share expectations ranges in each year through 2026.”
These expectations through 2026 remain unchanged. In its Q2 call, NextEra said that FLP is expecting a capital investment of between US$32-34 billion through 2025, around US$10 billion of which will go towards solar capacity additions and around US$15 billion towards transmission development. In its decarbonisation strategy last year, NextEra said that its renewables business would seek to deploy 90GW of solar PV by 2045, a large proportion of which would be targeted through FLP.
