Earnings Sentiment

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.

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Sentiment Distribution

   

Earnings Call Transcript Word Cloud

     

Bullish Statements during Earnings call

Statement
So, I would hope you would expect what I would argue is the best position company to execute well against an environment like that
FPL remains among the best utilities in the United States, achieving top operational performance across key metrics while maintaining the industry's lowest cost structure, one of the cleanest emissions profiles, and a customer bill that is roughly 30% lower than the national average
In the quarter, FPL continued to deliver outstanding value to its customers in what we believe has been one of the most constructive regulatory jurisdictions in the nation
And I think one of the big benefits that we have, given our scale and given our leverage and the ability to buy this equipment in very large quantities and really lock up a lot of the manufacturing lines for this equipment, it's a true competitive advantage for a renewable business the way I think about it
Energy Resources extended its leadership position in renewable energy during the third quarter with strong adjusted earnings growth and its best renewables and storage origination quarter in its history
I think on grid power, I actually the grid-level issues that you just mentioned, we're in very good shape on
With the strongest balance sheets in the sector and worldwide banking relationships, we believe NextEra Energy has both significant access to capital and cost-of-capital advantages and is well positioned to continue to deliver long-term value for shareholders
And so, for the most part all of our solar suppliers have been able to do that and so, we are in very good shape there
So, in very good shape there
So overall, across the board, really excited about the opportunities that we have in front of us
Our capital investment plan is well-established and focused on enhancing what we believe is one of the best customer value propositions in the industry
Key indicators show that the Florida economy remains healthy and Florida continues to be one of the fastest-growing states in the country
We still see a lot of geographies where wind is incredibly attractive and so I feel good about long-term demand for wind and I also feel really good about long-term demand for repowering projects
As a result, FPL observed solid underlying growth in third quarter retail sales of roughly 1% on a weather normalized basis
And I think that's still affecting the industry a little bit and then, obviously, the PTC being extended for solar significantly improved the economics from a relative standpoint, which has been super positive for demand
So that's really positive in my mind
In terms of the technology, obviously, we had very strong findings for storage and as Kirk highlighted in the prepared remarks, in terms of the -- maybe not surprise is probably not the right word, but really pleased to see how we're starting to see adoption across a broader set of markets, not just California, but into the Midwest, where our utility customers and obviously some of the C&I are really valuing the ability to incorporate storage for capacity value and affirming and shaping the renewables product
So long story short, between the $20.5 billion that we have against the backlog the fact that our existing portfolio is already locked in and hedged, we feel very good about our interest rate exposure
Although we will remind you that signings can be lumpy quarter-to-quarter, we do believe this is a terrific sign of strong underlying demand for new renewable generation
With the five year to 10 year tenors, with the average coupon 375 basis points, we feel very good about the protection that we have there
So long story short, we feel terrific about our ability to source tax equity financing going forward
As a reminder, in a repower, we invest roughly 50% to 80% of the cost of a new build, are able to refresh and enhance the performance of the turbine equipment, and start a new 10 years of production tax credits, collectively resulting in attractive returns
I think that might be a decent starting place to think about and we feel very good about our ability to be able to access tax equity
The combination of the standalone storage tax credit and the ability to utilize existing interconnection capacity from our operating renewables and storage footprint positions us well to serve our customers' growing needs for capacity
And one of the things that really helps NextEra and the tax transfer market is the fact that we have a strong balance sheet
taxpayers in our building relationships and have had terrific execution against our '23 plan
So, based on what we see today, very exciting and I think it's founded on the things that you all know well, which is a backdrop of increasing electrification, increasing demand for generation and capacity value across our sector, and renewables continuing to be the least cost form of generation
So, I'm really pleased and also, in looking at the pipeline for the fourth quarter, obviously, this is a development business
In terms of demand, obviously, we can't fully predict the future, but I can tell you that the two data points that I think are really top of mind and illustrated from our report today is 3.2 gigawatts is a fantastic sign I think, of demand
We believe FPL and Energy Resources are well-positioned to manage interest rate volatility in the current environment
       

Bearish Statements during earnings call

Statement
We will be disappointed if we are not able to deliver financial results at or near the top end of our adjusted EPS expectation ranges in each year from 2023 through 2026
Consequently, the partnership's cost of capital increased, which made it difficult to support a 12% growth rate in a way that is sustainable and in the best interest of unit holders over the long term
And at the same time, look, this is a little bit more of a challenging macroeconomic environment
Turning now to our third quarter 2023 consolidated results, adjusted earnings from corporate and other decreased by $0.01 per share year-over-year
If you can't do that, that really puts you at a significant disadvantage
It's been a difficult year, and we have a lot of work to do
All other impacts reduced earnings by $0.08 per share
The remaining megawatts were removed due to permitting challenges
We also removed roughly 1,180 megawatts from our backlog, including roughly 800 megawatts of projects in New York following an adverse decision by NYSERDA two weeks ago
I think there were some unintended consequences around Basel III, and we have had significant discussions with the folks involved
On the wind side, I think we're still seeing a little bit of dynamics that shaped up as a result of the tax credits that we originally we and the industry – thought were going to phase down after 2020
So we saw a significant amount of pull forward of demand
   

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