Florida-headquartered NextEra Energy has recorded a net income of US$2,795 million in Q2 2023 as both its renewables development and utility generation arms posted strong results.
NextEra Energy Resources posted US$1,462 million in net income in the 3 months from March this year, with adjusted earnings of US$781 million. The company expanded its renewables and storage backlog by 1,665MW this quarter, around 1.2GW of which was solar PV, 150MW wind and 300MW energy storage.
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In Q1 this year NextEra Energy Resources added more to its backlog – around 2,020MW – but net income and adjusted earnings remained fairly constant, with just a slight increase this time around from US$1,440 million net and US$732 adjusted last quarter.
Year-on-year (YoY), Q2 was a success. The parent company’s net income more than doubled compared with US$1,380 million in Q2 2022, whilst NextEra Energy Resources’ net income rose dramatically from US$133 million last year. The relative net income share price of the renewables developer YoY increased tenfold from US$0.07 to US$0.72.
NextEra Energy also owns Florida Light & Power Company (FLP), which it said is the US’ largest electricity utility. The utility posted a net income of US$1,152 million, a YoY increase from US$989 million in 2022. Capital expenditure for FLP was approximately US$2.5 billion in Q2, and NextEra said it has been continually investing in the company. Around 225MW of solar was added to its generation profile this quarter.
“NextEra Energy continued its solid execution with adjusted earnings per share growth of approximately 8.6% for the second quarter and 11% for the first half of the year,” said John Ketchum, president and CEO of NextEra Energy.
“Due to our continued strong execution and visible earnings growth across both businesses, we remain confident in our long-term growth prospects. 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.”
Looking forward, 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.
Transmission upgrades are a challenge for solar and renewables growth in the US; a report from earlier this month found that Texas’ utility ERCOT could see around 20% of its potential solar capacity curtailed by 2035 if it fails to upgrade its transmission grid.
NextEra Energy Resources’ backlog currently stands at around 20GW. Last year it announced a new decarbonisation strategy that looks to eliminate all scope 1 and 2 emissions from its operations and deploy 90GW worth of solar PV by 2045. A ‘significant portion’ of this will be targeted through FLP, the company said at the time.