11:25 AM EDT, 08/02/2023 (MT Newswires) -- Utility holding company Fortis Inc. (FTS.TO) on Wednesday reported second-quarter adjusted net earnings of $302 million, or $0.62 per share, rising from $272 million, or $0.57 per share, in the year-ago quarter.
The results were in line with the S&P Capital IQ consensus normalized EPS estimate of $0.62 for the quarter.
Capital expenditures for the quarter amounted to $1.03 billion, an increase from $930 million in the same quarter a year ago. The company is on track with its $4.3 billion annual capital plan.
"From an operational perspective, our systems performed well during the quarter, even when faced with extreme weather events in Western Canada," said David Hutchens, President and CEO of Fortis.
Fortis' $22.3 billion five-year capital plan is expected to increase mid-year rate base from $34.1 billion in 2022 to $46.1 billion by 2027, translating into a five-year compound annual growth rate of 6.2%.
The company also released its 2023 sustainability update report, which showed a 29% reduction in direct greenhouse gas emissions through 2022 compared with 2019 levels. Fortis aims to reduce greenhouse gas emissions 50% by 2030 and 75% by 2035, moving toward a net-zero target by 2050.
Meanwhile, Fortis' adjusted EPS beat National Bank of Canada's estimate of $0.61 and aligned with the Street forecast of $0.62.
The bank expects little change to Fortis' estimates and valuation given the company's in-line results and unchanged capital plan.
National Bank gave Fortis a sector perform rating with a $57.00 price target.
Price: 55.42, Change: -0.13, Percent Change: -0.23