Eversource Energy (NYSE: ES) today reported earnings of $264.5
million, or $0.77 per share, in the second quarter of 2021,
compared with earnings of $252.2 million, or $0.75 per share, in
the second quarter of 2020. In the first half of 2021, Eversource
Energy earnings totaled $630.7 million, or $1.83 per share,
compared with earnings of $587 million, or $1.75 per share, in the
first half of 2020.
Results for both years include charges primarily related to the
October 2020 acquisition of the assets of Columbia Gas of
Massachusetts. Those charges totaled $6.8 million in the second
quarter of 2021 and $13 million in the first half of 2021, compared
with charges of $3.9 million in the second quarter of 2020 and $7.4
million in the first half of 2020. Absent those charges, Eversource
earned $271.3 million1, or $0.79 per share1, in the second quarter
of 2021 and $643.7 million1, or $1.87 per share1, in the first half
of 2021.
Eversource Energy also today reaffirmed its previously disclosed
2021 earnings per share (EPS) projection toward the lower end of a
range of $3.81 to $3.93 per share. That guidance includes a charge
of $0.07 per share in the first quarter of 2021 related to
Connecticut regulators’ assessment of the company’s performance
restoring power in August 2020 following the catastrophic damage
from Tropical Storm Isaias. Eversource Energy also today reaffirmed
its long-term EPS growth rate from its existing core regulated
businesses in the upper half of 5-7 percent, using the $3.64 per
share1 earned in 2020 as a base.
“We remain a steadfast partner in our region’s efforts to
enhance its infrastructure and reduce its carbon footprint,” said
Joe Nolan, Eversource president and chief executive officer. “We
continue to advance a large number of innovative clean energy
initiatives, and despite the challenges posed by Tropical Storm
Elsa and a large number of damaging thunderstorms earlier this
month, our employees worked around the clock to support our
customers and repair tree-caused damage as promptly and safely as
possible. We are pleased that this work by our employees is being
recognized by customers and our policymakers.”
Electric Transmission
Eversource Energy’s transmission segment earned $137.6 million
in the second quarter of 2021 and $273 million in the first half of
2021, compared with earnings of $129.5 million in the second
quarter of 2020 and $256.2 million in the first half 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 earned $121.6
million in the second quarter of 2021 and $214.9 million in the
first half of 2021, compared with earnings of $115 million in the
second quarter of 2020 and $245.1 million in the first half of
2020. Improved second-quarter results were due primarily to higher
revenues, offset by higher operation and maintenance expense,
depreciation and property taxes. Lower first half results in 2021
are primarily the result of the aforementioned first-quarter storm
performance charge.
Natural Gas Distribution
Eversource Energy’s natural gas distribution segment earned $4.1
million in the second quarter of 2021 and $151.6 million in the
first half of 2021, compared with earnings of $2.6 million in the
second quarter of 2020 and $88.6 million in the first half of 2020.
Improved second-quarter results were primarily the result of higher
revenues. Higher first-half results in 2021 were due primarily to
the addition of the former Columbia Gas of Massachusetts assets,
most of which are now held by Eversource Gas Company of
Massachusetts.
Water Distribution
Eversource’s water segment earned $8.9 million in the second
quarter of 2021 and $12.6 million in the first half of 2021,
compared with earnings of $10.4 million in the second quarter of
2020 and $12.5 million in the first half of 2020. Lower
second-quarter results were primarily due to lower revenues due to
the sale of the water system around Hingham, Massachusetts in
mid-2020.
Eversource Parent and Other
Companies
Eversource Energy parent and other companies had losses of $7.7
million in the second quarter of 2021 and $21.4 million in the
first half of 2021, compared with losses of $5.3 million in the
second quarter of 2020 and $15.4 million in the first half of 2020.
Higher losses primarily reflect the impact of acquisition-related
costs related to the Columbia Gas assets and Aquarion Company’s
pending acquisition of New England Service Company.
The following table reconciles 2021 and 2020 second quarter and
first half earnings per share:
Second Quarter
First Six Months
2020
Reported EPS
$0.75
$1.75
Higher electric transmission earnings in
2021, offset by dilution
0.01
0.03
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
0.00
0.18
Higher electric distribution revenues in
2021, offset by higher O&M, depreciation, property taxes and
interest expense at the electric distribution segment
0.02
0.00
Higher storm expense in 2021
(0.01)
(0.04)
First-quarter 2021 storm-related
charge
0.00
(0.07)
Other
0.01
0.00
Incremental charges related to
acquisitions in 2021
(0.01)
(0.02)
2021
Reported EPS
$0.77
$1.83
Financial results by segment for the second quarter and first
six months of 2021 and 2020 are noted below:
Three months ended:
(in millions, except EPS)
June 30, 2021
June 30, 2020
Increase/ (Decrease)
2021 EPS1
Electric Transmission
$137.6
$129.5
$8.1
$0.40
Electric Distribution
121.6
115.0
6.6
0.35
Natural Gas Distribution
4.1
2.6
1.5
0.01
Water Distribution
8.9
10.4
(1.5)
0.03
Eversource Parent and Other Companies1
(0.9)
(1.4)
0.5
0.00
Charges related to acquisitions
(6.8)
(3.9)
(2.9)
(0.02)
Reported Earnings
$264.5
$252.2
$12.3
$0.77
Six months ended:
(in millions, except EPS)
June 30, 2021
June 30, 2020
Increase/ (Decrease)
2021 EPS1
Electric Transmission
$273.0
$256.2
$16.8
$0.79
Electric Distribution
214.9
245.1
(30.2)
0.62
Natural Gas Distribution
151.6
88.6
63.0
0.44
Water Distribution
12.6
12.5
0.1
0.04
Eversource Parent and Other Companies1
(8.4)
(8.0)
(0.4)
(0.02)
Charges related to acquisitions
(13.0)
(7.4)
(5.6)
(0.04)
Reported Earnings
$630.7
$587.0
$43.7
$1.83
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 July 30, 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 a non-GAAP financial measure
referencing 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. Management
believes the acquisition and transition costs are not indicative of
Eversource Energy’s ongoing costs and 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 June
30,
For the Six Months Ended June
30,
(Thousands of Dollars, Except Share
Information)
2021
2020
2021
2020
Operating Revenues
$
2,122,538
$
1,953,128
$
4,948,378
$
4,326,854
Operating Expenses:
Purchased Power, Fuel and Transmission
650,087
630,132
1,648,578
1,506,703
Operations and Maintenance
411,147
332,055
876,689
674,117
Depreciation
274,647
240,516
545,352
476,727
Amortization
5,611
23,397
113,624
73,172
Energy Efficiency Programs
128,955
115,354
317,018
263,747
Taxes Other Than Income Taxes
200,486
178,019
409,944
359,613
Total Operating Expenses
1,670,933
1,519,473
3,911,205
3,354,079
Operating Income
451,605
433,655
1,037,173
972,775
Interest Expense
145,435
134,285
283,201
269,000
Other Income, Net
46,619
30,243
80,820
54,347
Income Before Income Tax Expense
352,789
329,613
834,792
758,122
Income Tax Expense
86,389
75,501
200,370
167,379
Net Income
266,400
254,112
634,422
590,743
Net Income Attributable to Noncontrolling
Interests
1,880
1,880
3,759
3,759
Net Income Attributable to Common
Shareholders
$
264,520
$
252,232
$
630,663
$
586,984
Basic and Diluted Earnings Per Common
Share
$
0.77
$
0.75
$
1.83
$
1.75
Weighted Average Common Shares
Outstanding:
Basic
343,844,626
337,946,663
343,761,435
334,524,452
Diluted
344,435,696
338,561,649
344,385,193
335,749,404
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210729006046/en/
Jeffrey R. Kotkin (860) 665-5154
Eversource Energy (NYSE:ES)
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