NextEra second quarter profits dip
US renewables giant NextEra Energy posted second-quarter net profit of $492m, down from $610m in the same period last year, in its first earning release since the launch of its "yieldco", NextEra Energy Partners.
Executives told analysts on a conference call that the company this year expects to place 1.02GW of US wind into commercial operation and 342MW in Canada.
“Our development and construction programs remain on track,” says chief financial officer Moray Dewhurst.
For 2015, NextEra’s Energy Resources unit will bring 498MW of wind online in the US and two projects in Canada totaling 124.4MW.
For solar, the company expects to complete three projects totaling 550MW by the end of this year, and four projects in 2015-16 totaling 547MW.
NextEra,the largest US wind and solar generator, reported revenues of $4.03bn against a year-earlier $3.83bn.
NextEra raised $443m through a July IPO for NextEra Energy Partners (NEP), which begins life with 990MW of capacity.Dewhurst says that assets in the initial NEP portolio performed well in the second quarter.
He estimates that the initial NEP portfolio will yield earnings before interest, taxes, depreciation and amortization of about $250m and cash available for distribution of about $87m for the 12 months through the end of June 2015.
"These results should support an initial distribution at an annualized rate of 75 cents per unit," he adds, assuming normal weather and operating conditions.
Beyond then, Dewhurst says he expects unit distributions to grows about 12% to 15% per year for at least three years.
He notes that "we believe it to be reasonable" to expect that Energy Resources will want to make available additional renewable energy projects from its existing portfolio, as well as some currently under development.
Turning to the federal production tax credit for wind, ENergy Resources chief executive Armando Pimentel says "if history tells us anything," Congress will not act to renew it until the end of the current session in December.