Juno Beach, Fla.-based NextEra Energy Inc., the company looking to buy Hawaiian Electric Industries Inc., said Tuesday that strong demand for renewable projects more than doubled its fourth-quarter earnings to $884 million, or $2 a share, from $327 million, or 75 cents a share, in the year-earlier period.
Despite low contributions from its gas infrastructure business, new wind and solar investments boosted the company’s earnings from the year before.
For the year, the company reported a profit of $2.47 billion, or $5.60 per share, compared with $1.9 billion, or $4.47 per share, in 2013. Revenue rose to $17.02 billion from $15.14 billion.
NextEra had one of its best years in new investment opportunities with new renewable-energy contracts and the potential purchase of HEI, NextEra CEO Jim Robo said in a news release.
"(We) continue to build what we believe is the largest and best pipeline of new contracted renewables projects in North America," Robo said.
On Dec. 3, NextEra said it planned to buy HEI for $4.3 billion if it receives regulatory and shareholder approval. The purchase of HEI would help solidify NextEra’s position as a leader in wind and solar energy generation, Robo said.
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FOURTH-QUARTER NET
$884 million
YEAR-EARLIER NET
$327 million
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"Our agreement to combine with Hawaiian Electric Industries reflects our strategy to grow earnings through regulated businesses and to leverage our position as North America’s leader in wind and solar generation," he said.
Robo said he was confident that the deal would finalize within the year.
"The teams are working on the SEC filings as well as the Hawaii PUC (Public Utilities Commission) filing for regulatory approval, and things are moving apace," Robo said on a conference call with financial analysts. "I remain optimistic that we’re going to be able to finalize things within a 12-month period here by the end of the year."
Florida Power & Light Co., an electric utility owned by NextEra Energy, said more customer accounts helped boost the subsidiary’s fourth-quarter earnings to $286 million from $248 million in the year-ago period.
NextEra Energy Resources, NextEra’s energy business, reported income of $614 million, up from $85 million.
Wind and solar energy were primary drivers for the energy business in 2014 as NextEra Energy Resources added 1,364 megawatts of wind and 265 megawatts of solar.
NextEra’s stock was up $1.47 Tuesday to close at $111.22.
