Eversource Bounces Back from Losses Related to Wind Divestitures

Eversource Energy is back to making profits after completing the sale of its stakes in offshore wind projects in the United States.

The power, gas and water utility serving New England reported $72.52 million, or $0.2 per share, in net income for the fourth quarter (Q4) of 2024, compared to a net loss of $118.06 million for the prior quarter.

In Q3 2024 Eversource closed the sale of its 50 percent stake in Revolution Wind and South Fork Wind to Global Infrastructure Partners for $745 million in gross proceeds, and a 50 percent interest in Sunrise Wind to Ørsted AS for $230 million in gross proceeds.

“Results for the full-year 2024 include an aggregate net after-tax loss of $524.0 million, or $1.47 per share, related to Eversource Energy completing the sales of its offshore wind investments”, the company said in its quarterly report. Full-year net earnings totaled $811.65 million.

However, Eversource logged a Q4 net after-tax loss of $298.3 million from the pending sale of water distribution business Aquarion Water Co.

“With the strategic decision to divest Aquarion, which is expected to close by late 2025, we will greatly strengthen our balance sheet and continue to focus on our regulated electric and natural gas utility businesses”, commented chair, president and chief executive Joe Nolan.

Eversource reported $2.97 billion in operating revenue for the October-December 2024 period, down from $2.69 billion for Q4 2023. Operating income came at $347.84 million, down from $558.55 million for Q4 2023.

Eversource’s electric transmission segment earned $184 million for Q4 2024, up from $167 million “primarily due to a higher level of investment in Eversource’s electric transmission system”.

Electric distribution earned $110.4 million for Q4 2024, up from $103.7 million for Q4 2023. “Improved full-year and fourth-quarter results were due primarily to higher revenues from base distribution rate increases for Eversource’s Massachusetts and New Hampshire electric businesses and continued investments in Eversource’s distribution system, partially offset by higher non-tracked operations and maintenance (O&M), interest, depreciation and property tax expense, as well as a higher effective tax rate”, it explained.

The natural gas distribution segment earned $103.4 million for Q4 2024, up from $76.5 million for Q4 2023. “Improved full-year and fourth-quarter results were due primarily to higher revenues from base distribution rate increases at Eversource’s Massachusetts natural gas businesses and continued investments in Eversource’s natural gas infrastructure, partially offset by higher depreciation, interest and property tax expense”, it said.

Water distribution earned $7.5 million for Q4 2024, up from $5.7 million for Q4 2023. “Improved full-year and fourth-quarter results were due primarily to lower depreciation expense resulting from lower depreciation rates ordered by PURA [Public Utilities Regulatory Authority] in its final decision in the Aquarion CT rate case, partially offset by lower authorized revenues”, the report stated. “Results for both periods also reflect lower interest expense resulting from the repayment of debt that matured in August 2024, partially offset by higher year-to-date O&M expense”.

Eversource has declared a quarterly dividend of $0.7525 per share, up from $0.715.

For 2025 it expects earnings per share of $4.67-$4.82. “The Company also expects that its cumulative long-term earnings per share growth rate would be in the range of 5 to 7 percent through 2029, using 2024 non-GAAP results of $4.57 per share1 as the base year”, it said.

It plans to invest $24.2 billion for 2025-29, compared to the previous plan of $22.1 billion for 2024-28. “This increase is primarily due to higher transmission investment for the development of future substations and replacements for aging infrastructure”, it said.

“Eversource expects to raise $1.2 billion of equity, excluding the annual equity issuances related to its dividend reinvestment and equity compensation programs, over its forecast period of 2025-2029. The majority of this equity is expected to be raised in the latter half of the forecast period”.

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