Emera (EMA) Q3 2024 earnings summary

Executive summary

• Adjusted EPS rose 8% to $0.81 in Q3 2024, driven by strong Florida operations, customer growth, and new base rates at Peoples Gas.

• Reported EPS fell to $0.01 from $0.37 in Q3 2023, mainly due to $225 million in charges related to the pending sale of New Mexico Gas Company.

• Dividend increased for the 18th consecutive year, reflecting confidence in asset portfolio and earnings growth.

• Strategic actions in 2024, including asset sales, securitizations, and a $500 million federal loan guarantee for Nova Scotia Power, have strengthened the balance sheet and improved credit metrics.

• Corporate costs declined, aided by timing differences in long-term incentive expense and related hedges.

Financial highlights

• Q3 2024 adjusted net income was $236 million ($0.81 per share), up from $204 million ($0.75 per share) in Q3 2023.

• Q3 2024 reported net income was $4 million ($0.01 per share), down from $101 million ($0.37 per share) in Q3 2023, due to NMGC sale charges.

• Year-to-date adjusted net income was $603 million ($2.10 per share), down from $634 million ($2.33 per share) in 2023.

• Operating cash flow before working capital changes reached $1.5 billion for the first three quarters, excluding regulatory deferrals.

• Securitized over $600 million in fuel balances at Nova Scotia Power and collected $650 million of fuel and storm under-recoveries at Tampa Electric over 21 months.

Outlook and guidance

• Reaffirmed three-year average adjusted EPS growth rate guidance of 5%-7% through 2027 and 7–8% rate base growth through 2029.

• Five-year capital investment and funding plan to be unveiled at investor day on December 4, 2024.

• Confident in meeting and exceeding threshold credit metrics in 2025.

• On track to fully deploy $2.9 billion capital plan in 2024, focusing on reliability, grid modernization, renewables, and infrastructure expansion.