Revenues grew 8.4% year-over-year
Renewables titan NextEra Energy (NEE) reported its fourth quarter financial results on January 26, 2018. NextEra Energy reported total operating revenues of $4.01 billion for the quarter ending on December 31, 2017—8.4% higher than revenues of $3.70 billion in 4Q16.
NextEra Energy’s strong performance continued in 4Q17 mainly due to the favorable impact of tax reforms and healthy deliverance from both of its subsidiaries.
FPL (Florida Power and Light), NextEra Energy’s rate-regulated utility in Florida, significantly uplifted its parent’s performance in the last several quarters. FPL reported operating revenues of $2.9 billion in 4Q17—compared to revenues of $2.6 billion in 4Q16. In 4Q17, FPL’s average number of customers increased by 55,300—compared to 4Q16.
Healthier customer base growth has been one of the most important growth drivers for NextEra Energy in the last few years. US utilities (XLU) (VPU) (IDU) have been focusing on customer base growth for the last few years after electricity consumption decreased due to energy efficiency programs.
Additionally, Florida’s strong economy helped the utility increase its customer base. FPL’s retail kilowatt-hour sales increased 0.5% in 4Q17 compared to 4Q16, while retail kilowatt-hour sales dipped ~1% in 2017—compared to 2016.
NextEra Energy announced that it won’t raise FPL customers’ rates for restoration costs of ~$1.3 billion after Hurricane Irma. NextEra Energy will use federal tax savings and avoid a base rate increase for nearly 5 million customers for up to two years.
NextEra Energy Resources reported revenues of $1.1 billion in 4Q17—compared to revenues of $1.05 billion in 4Q16. NextEra Energy Resources’ performance was boosted due to record solar and wind generation capacity additions in 2017.