NextEra Energy, Inc. (NEE) has reported a 90.53 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $966 million, or $2.06 a share in the quarter, compared with $507 million, or $1.10 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $566 million, or $1.21 a share compared with $539 million or $1.17 a share, a year ago.
Revenue during the quarter dropped 9.09 percent to $3,699 million from $4,069 million in the previous year period. Gross margin for the quarter expanded 360 basis points over the previous year period to 74.70 percent. Total expenses were 74.97 percent of quarterly revenues, down from 78.47 percent for the same period last year. This has led to an improvement of 351 basis points in operating margin to 25.03 percent.
Operating income for the quarter was $926 million, compared with $876 million in the previous year period.
"Our performance during 2016 was strong both financially and operationally, highlighted by outstanding execution on our initiatives all across the board," said Jim Robo, chairman and chief executive officer of NextEra Energy. "We grew 2016 adjusted earnings per share by 8.4 percent and delivered total shareholder return of 18.4 percent that not only beat the S&P Utility Index, but also the S&P 500. That continues a trend since 2005 during which we've delivered compounded annual growth in adjusted earnings per share of more than 8 percent. At FPL, we were pleased to reach a fair and balanced outcome related to our base rate case, while continuing to deliver on what we believe is one of the best customer value propositions in the nation. NextEra Energy Resources also had a very successful year, expanding its renewables portfolio through the addition of approximately 2,500 megawatts of new wind and solar projects. This was not only a record year for the business, but we also believe was the most wind and solar megawatts ever added in North America in one year by one company. We are extremely proud of our long-term track record of providing growth and value creation opportunities for our shareholders and are committed to continuing that track record going forward. With this in mind, we are extending our financial expectations out through 2020, based on the overall strength and diversity of our growth prospects."
For financial year 2017, NextEra Energy, Inc. forecasts diluted earnings per share to be in the range of $6.35 to $6.85 on adjusted basis.
Operating cash flow improves marginally
NextEra Energy, Inc. has generated cash of $6,336 million from operating activities during the year, up 3.60 percent or $220 million, when compared with the last year.
The company has spent $8,110 million cash to meet investing activities during the year as against cash outgo of $8,005 million in the last year. It has incurred net capital expenditure of $3,299 million on net basis during the year, down 4.63 percent or $160 million from year ago.
Cash flow from financing activities was $2,495 million for the year, up 32.50 percent or $612 million, when compared with the last year.
Cash and cash equivalents stood at $1,292 million as on Dec. 31, 2016, up 126.27 percent or $721 million from $571 million on Dec. 31, 2015.
Working capital remains negative
Working capital of NextEra Energy, Inc. was negative $3,510 million on Dec. 31, 2016 compared with negative $3,312 million on Dec. 31, 2015. Current ratio was at 0.68 as on Dec. 31, 2016, up from 0.67 on Dec. 31, 2015.
Debt moves up marginally
NextEra Energy, Inc. has witnessed an increase in total debt over the last one year. It stood at $30,840 million as on Dec. 31, 2016, up 3.88 percent or $1,153 million from $29,687 million on Dec. 31, 2015. Total debt was 34.27 percent of total assets as on Dec. 31, 2016, compared with 35.99 percent on Dec. 31, 2015. Debt to equity ratio was at 1.22 as on Dec. 31, 2016, down from 1.28 as on Dec. 31, 2015. Interest coverage ratio improved to 2.39 for the quarter from 2.93 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net