Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| Overall, we're pleased with our fourth quarter results in the backdrop of a challenging 2023 |
| We also see an opportunity to improve our performance and maximize our operational efficiency, including through initiatives such as the rollout of our customer first SAP program, and improving our processes and leveraging this significant technology foundation that we've put in place |
| We're excited about the opportunities ahead and will shape our regulated business into a leading utility platform |
| We're quite pleased with what we did in Q1 with the -- both the bond and the securitization |
| The Renewable Energy Group posted fourth quarter divisional operating profit of $107.6 million, an increase of 6%, primarily due to improved equity income from the Texas Coastal Wind facilities, more favorable capacity revenues for the majority of solar facilities, and slightly higher HLBV income |
| And so we see that as very positive for the business, because the market continues to develop |
| We're pleased with these continued advancements as a core growth strategy of the Regulated Services Group is to responsibly invest in our utility systems on behalf of our customers and target a constructive return on our rate base |
| We launched the sale process with potential buyers in the fourth quarter and are pleased with the level of buyer interest that we've seen in our renewables platform |
| These two solid businesses -- our solid businesses with significant long-term opportunity |
| Our regulated services group grew at a healthy pace in 2023 |
| Regulated divisional operating profit grew 10% year-over-year, primarily driven by interest income on regulatory asset accounts and new rates implemented at several of our utilities |
| This growth reflects tremendous opportunity to invest in our systems for the benefit of our customers |
| On a per share basis, our fourth quarter adjusted net earnings per share was $0.16, a $0.14 improvement year-over-year, primarily attributable to organic, regulated growth and higher tax credit recoveries from our renewables business |
| So from a liquidity point of view, we're in good shape and we're just executing our plan with the sale of the renewables business |
| So the pursuit of selling it is so that we can spend more on the regulated business and a buyer can spend more on the renewables business, because it has such a strong platform and a lot of opportunities |
| The other thing that you're going to see from us is especially, as I said earlier, is we get the SAP system up and running and working efficiently, we're going to be able to improve our cost of operations |
| We believe that the decisions we've made are the right actions to simplify the business and better position the company for long-term profitable growth and focused value creation for shareholders |
| We also are making progress in our search for a permanent CEO and have been pleased with the slate of candidates reviews thus far |
| While full-year adjusted net earnings per share were boosted by organic growth in our regulated business and higher than typical tax credit recoveries, these positive items were more than offset by higher interest expense and $0.05 from unfavorable weather, as well as higher minority interest expense related to our fourth quarter 2022 asset recycling transaction |
| Despite a weather challenge year, our renewables business ended the period with fourth quarter divisional operating profit up by 6% |
| From a business segment performance standpoint, both full-year 2023 and fourth quarter saw a double-digit divisional operating profit growth for our regulated services group, due primarily to a number of new rate implementations across our utility portfolio |
| In fact, again, we think the momentum of that pipeline and the momentum of that business is part of what's attractive about that business |
| The regulated service group delivered $238.3 million in divisional operating profit in the fourth quarter and $954.1 million for the full-year, up 11% and 10%, respectively year-over-year |
| It's a good thing |
| All in all, the renewables business had lower generation due to unfavorable weather, but made solid progress growing generation capacity and the development pipeline |
| We're pleased to report that during the course of 2023, a Regulated Services Group received final rate case orders at eight of our utilities and one additional order subsequent to year-end in January 24 with authorized revenue increases totaling $44.1 million, representing over 70% of our rate requests |
| And so now we'll have it implemented, we'll be able to take advantage of it and therefore get our costs exactly where they should be, so that we can make our returns |
| We're working to improve our returns and have a number of active rate cases |
| And so I would see substantial improvement in 2024 and then continued improvement in ‘25 |
| Q4 consolidated adjusted EBITDA was $334.3 million, up 13% from the same period last year, while full-year consolidated adjusted EBITDA was approximately $1.24 billion, an increase of 4% over 2022 |
| Statement |
|---|
| Full-year adjusted net earnings were $372 million, down 11% from last year |
| On a full-year basis operating profit was $371.8 million, a 9% decrease year-over-year, which was driven primarily due to an expected drop in HLBV income from certain 2012 vintage assets reaching end of PTC eligibility and unfavorable weather across Canadian and U.S |
| For the full-year adjusted net earnings per share came in at $0.53, a decline of 13% year-over-year |
| And so, in large part, growing pains with respect to implementation of a new system |
| And if we're not hitting those numbers, then we're not achieving our returns |
| And then maybe just sticking with the utilities as well, you know, you did see some headwinds in 2023 as expected |
| And just coming back to Rob's question, you know, you commented on the 2023 headwinds on earned ROEs |
| And so that has caused quite a bit of lag in and of itself |
| This is consistent with our third quarter update where we stated that we expected full-year guidance to come in at or below our 2023 guidance range of $0.55 to $0.61 |
| And so the system will help us do that in a very big way, but obviously implementing that system was a drag on those costs |
| We did also include a little more color in our investor deck on just that -- on these debt components because I know it can be confusing for people |
| Our gap today reflects timing from investments we have made and under-earning at New York Water as a result of our stay out from the acquisition |
| And fundamentally, that should not be the case |
| These were partially offset by unfavorable mid-year weather at the Empire Electric System |
| Chris Huskilson No news is good news |
| So no, we're not slowing down at all |
Please consider a small donation if you think this website provides you with relevant information