Today AVANGRID, Inc. (NYSE:AGR) reported consolidated net income of $267
million for 2015. These results include earnings for the full year for
AVANGRID (formerly Iberdrola USA, Inc.) and earnings from December 17,
2015 through the end of 2015 for UIL Holdings Corporation (UIL). There
is no meaningful earnings comparison to 2014.
“In 2015, we successfully completed our merger transaction on target,
obtaining all regulatory approvals and closing within 10 months of our
announcement,” commented James P. Torgerson, AVANGRID’s chief executive
officer. “Due to the timing of the merger, our full-year 2015 financials
only include earnings for UIL from mid-December on. The results for 2015
were impacted by the non-recurring items related to the merger and the
settlements with the regulatory authorities in Connecticut and
Massachusetts in the merger proceedings, as well as the effects of a
warm winter and low wind production.”
“In 2016, we will rapidly conclude our transition planning within the
first quarter, focus on executing our capital expenditure plan in all of
the businesses, and proceed with our important initiatives, including
those related to New York’s Reforming the Energy Vision and
Connecticut’s Comprehensive Energy Strategy,” added Torgerson. “Later
today, at our Investor meeting, we will be presenting our view of
AVANGRID’s future prospects as a premier energy company in the U.S.,
with significant regulated and contracted growth opportunities and a
focus on technology and innovation that promotes and enables the
advancement of clean energy.”
Looking Forward
AVANGRID’s consolidated earnings estimate for 2016 is expected to be
$2.00 per share. Expected earnings for 2016 are detailed in the table
below:
as of February 22, 2016
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Expected EPS (1)
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Networks
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$1.65
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Renewables
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$0.40
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Other (2)
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($0.05)
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AVANGRID Total
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$2.00
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Amounts may not add due to rounding
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(1) Assumes approximately 309.5 million shares
outstanding
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(2) Includes Corporate and Gas Storage and
Transportation business
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The primary earnings drivers include;
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Additional capital investment and rate base growth
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The resolution of the NYSEG and RG&E rate cases in NY
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The expiration of a large contract in our gas storage business with a
negative mark-to-market position in late 2015
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Delay of UI rate case and certain capex
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Normal wind production
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Flat commodity pricing
Quarterly Dividend Declaration
AVANGRID’s Board of Directors declared a quarterly dividend of $0.432
per share on its common stock. This dividend is payable April 1, 2016 to
shareholders of record at the close of business on March 10, 2016.
Webcast
AVANGRID will webcast an audio-only financial presentation in
conjunction with releasing 2015 earnings, on Monday, February 22, 2016
beginning at 9:00 A.M. Eastern time. The webcast will feature
presentations from AVANGRID’s CEO, James P. Torgerson and other members
of the executive team, and can be accessed through the investor
relations section of AVANGRID’s website at http://www.avangrid.com.
AVANGRID, Inc. (NYSE:AGR) is a diversified energy and utility company
with $31 billion in assets and operations in 23 states. The company
operates regulated utilities and electricity generation through two
primary lines of business. Avangrid Networks includes eight electric and
natural gas utilities serving 3.1 million customers in New York and New
England. Avangrid Renewables operates 6.5 gigawatts of electricity
capacity, primarily through wind power, in states across the U.S.
AVANGRID employs 7,000 people. The company was formed as a business
combination between Iberdrola USA and UIL holdings in 2015. AVANGRID
remains an affiliate of the Iberdrola Group, a worldwide leader in the
energy industry.
Forward Looking Statements
Certain statements in this presentation may relate to our future
business and financial performance and future events or developments
involving us and our subsidiaries that are not purely historical and may
constitute “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of forward-looking terms such as
“may,” “will,” “should,” “can,” “expects,” “believes,” “anticipates,”
“intends,” “plans,” “estimates,” “projects,” “assumes,” “guides,”
“targets,” “forecasts,” “is confident that” and “seeks” or the negative
of such terms or other variations on such terms or comparable
terminology. Such forward-looking statements include, but are not
limited to, statements about our plans, objectives and intentions,
outlooks or expectations for earnings, revenues, expenses or other
future financial or business performance, strategies or expectations, or
the impact of legal or regulatory matters on our business, results of
operations or financial condition. Such statements are based upon the
current beliefs and expectations of our management and are subject to
significant risks and uncertainties that could cause actual outcomes and
results to differ materially. Important factors that could cause actual
results to differ materially from those indicated by such
forward-looking statements include, without limitation, the risks and
uncertainties set forth under the section entitled “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and Results
of Operations” included in our Quarterly Report on Form 10-Q, which is
on file with the SEC and available on our investor relations website at www.avangrid.com
and on the SEC website at www.sec.gov.
Additional information will also be set forth in our filings with the
SEC. Should one or more of these risks or uncertainties materialize, or
should any of the underlying assumptions prove incorrect, actual results
may vary in material respects from those expressed or implied by these
forward-looking statements. You should not place undue reliance on these
forward-looking statements. We do not undertake any obligation to update
or revise any forward-looking statements to reflect events or
circumstances after the date of the communication, whether as a result
of new information, future events or otherwise, except as may be
required under applicable securities laws.
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