NextEra 2Q Profit Rose 39% As New Wind Contracts Boost Revenue
NextEra Energy Inc. (NEE) second-quarter earnings rose 39% as new wind generation contracts drove revenue growth and improved margins.
The largest renewable energy provider in the U.S., formerly known as FPL Group Inc., has seen improved results of late, due in part to recovering power demand and expiring federal renewable-energy subsidies driving utilities to move forward with deals. But adverse economic conditions in Florida remain a concern. The company's Florida utility has agreed to freeze base rates through the end of 2012.
NextEra reported a profit of $580 million, or $1.38 a share, up from $417 million, or $1.01 a share, a year earlier. Excluding items such as the mark-to-market effects of nonqualifying hedges and other than temporary impairments on certain investments, earnings rose to $1.18 a share from $1.11.
Revenue jumped 10% to $3.96 billion. Analysts polled by Thomson Reuters had most recently forecast earnings of $1.09 on revenue of $3.74 billion.
Operating margin rose to 22.9% from 19.7%.
At the Florida Power & Light utility business -- which makes up the bulk of the company's revenue -- earnings increased 14%. The customer count increased by 28,500 to 4.55 million at the end of the period.
Its namesake, unregulated generating business saw earnings jump 55% to $239 million, while revenue rose 15%. Since late April, the company said it has signed contracts for 632 megawatts of new wind generation.
NextEra also backed its full-year earnings estimate.
Shares closed Tuesday at $57.36 and were inactive premarket. The stock has risen 6.6% over the past year.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283; melodie.warner@dowjones.com
(END) Dow Jones Newswires
07-27-11 0836ET
