Third Quarter 2021 Results and New Five-Year Capital Outlook ST. JOHN'S, Newfoundland and Labrador, Oct. 29, 2021 (GLOBE NEWSWIRE) -- Fortis Inc. ("Fortis" or the "Corporation") (TSX/NYSE: FTS) released its third quarter results1 and 2022-2026 capital investment plan.
Highlights
- Third quarter net earnings of $295 million, or $0.63 per common share
- Adjusted net earnings2 of $0.64 per common share
- Execution of 2021 $3.8 billion capital plan on track with $2.6 billion invested through September
- 2022-2026 capital plan of $20 billion announced, representing 6% rate base growth
- Increased common share dividend ~6%, marking 48 years of consecutive increases
- Reaffirmed 6% average annual dividend growth guidance through 2025
"Our company posted solid results again this quarter due to our strong operational and financial fundamentals," said David Hutchens, President and Chief Executive Officer, Fortis. "Our performance reflects the underlying growth at our utilities and the benefits of our regulatory and geographic diversity which mitigated headwinds related to unfavourable foreign exchange and cooler weather in Arizona."
"Today we are pleased to announce our new five-year $20 billion capital plan, representing Fortis' largest capital plan to date," continued Mr. Hutchens. "This highly executable plan will extend our robust rate base growth that will support the delivery of cleaner energy and advance our goal to reduce greenhouse gas emissions 75% by 2035."
Net Earnings
The Corporation reported net earnings attributable to common equity shareholders ("Net Earnings") of $295 million for the third quarter, or $0.63 per common share, consistent with net earnings per common share for the same period in 2020. Growth in the quarter was impacted by a lower U.S.-to-Canadian dollar exchange rate and cooler-than-normal temperatures in Arizona. In comparison, Arizona experienced the hottest temperatures on record in the third quarter of 2020.
Results from the Corporation's core operations continued to be strong in the quarter. Rate base growth, higher earnings at ITC, continued economic recovery in the Caribbean, and higher sales and the timing of expenditures at FortisAlberta favourably impacted Net Earnings. New customer rates effective January 1, 2021 at Tucson Electric Power also contributed to results. This growth was partially offset by realized losses on natural gas contracts at Aitken Creek, and the delay in Central Hudson's ongoing rate case, which is expected to be concluded in the fourth quarter of 2021. In addition, net earnings per common share reflected an increase in the weighted average number of common shares outstanding largely associated with the Corporation's dividend reinvestment plan.
On a year-to-date basis, Net Earnings were $903 million, or $1.92 per common share, an increase of $25 million, or $0.03 per common share compared to the same period in 2020. Growth was tempered by the unfavourable impact of foreign exchange of $45 million and significant one-time items recognized in the second quarter of 2020 of $14 million. The significant items included an adjustment to ITC's base ROE partially offset by the finalization of U.S. tax reform and associated regulations.
Excluding foreign exchange and the above noted one-time items, year-to-date Net Earnings increased by $84 million, or $0.18 per common share. The increase for the year-to-date period reflected the same factors discussed above for the quarter.
https://www.globenewswire.com/news-release/2021/10/29/2323465/0/en/Fortis-Inc-Releases-Third-Quarter-2021-Results-and-New-Five-Year-Capital-Outlook.html