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Emera reports financial results for the first quarter of 2024
HALIFAX, Nova Scotia, May 13, 2024–(BUSINESS WIRE)–Today Emera (TSX: EMA) released Q1 2024 financial results.
Summary
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Adjusted quarterly earnings per share (“EPS”) (1) of $0.76 decreased $0.23 or 23% compared to $0.99 in Q1 2023. The primary drivers of this change are:
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the impact of milder weather on Tampa Electric during the quarter;
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lower contributions from New Mexico Gas Company (“NMGC”) asset management arrangements, which were very strong in the first quarter of last year;
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lower profits at Nova Scotia Power (“NSPI”) due to an increase in OM&G costs focused on reliability and customer experience, as well as a one-time regulatory gloss;
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lower marketing and trading contributions at Emera Energy Services (“EES”), which had a very strong first quarter last year;
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higher corporate costs due to mark-to-market losses related to long-term compensation-related hedges;
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partially offset by higher contributions from Peoples Gas (“PGS”), which benefited from new tariffs and strong customer growth – delivering its highest quarterly earnings ever.
-
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Quarterly reported net income decreased by $353 million to $207 million compared to $560 million in the first quarter of 2023, and quarterly reported EPS decreased by $1.34 to $0.73. from $2.07 in Q1 2023. Both reductions were primarily due to mark-to-market (“MTM”) gains. at EES in 2023.
“While weather and an exceptionally strong quarter last year contributed to lower comparative adjusted earnings in the quarter, our key dealerships remain on track to deliver solid full-year earnings results,” said Scott Balfour, president and CEO of Emera Inc. ” We remain confident in the underlying forward-looking growth profile of our business, driven in large part by our two Florida operations. Peoples Gas is on track to become our second largest earnings contributor in 2024, behind Tampa Electric Together , our Florida business has delivered significant earnings growth over the past five years and we expect the drivers of that growth to continue.”
First Quarter 2024 Financial Results
Reported net income for the first quarter of 2024 was $207 million, or $0.73 per common share, compared to net income of $560 million, or $2.07 per common share, in the first quarter of 2023.
Adjusted net income(1) for the first quarter of 2024 was $216 million, or $0.76 per common share, compared to $268 million, or $0.99 per common share, in the first quarter 2023. The reduction was mainly due to lower profits from our operating businesses; increased corporate OM&G due to the timing of long-term compensation hedges; and higher corporate interest expenses.
The story continues
(1) See “Non-GAAP Financial Measures and Ratios” below and “Non-US GAAP Segment Results and Reconciliation” below for reconciliation to the closest US GAAP measure. |
Consolidated Financial Review
The following table highlights significant changes in adjusted net income attributable to common shareholders from 2023 to 2024.
For the |
Three months are over |
||
million Canadian dollars |
March 31 |
||
Adjusted net profit – 20231.2 |
$ |
268 |
|
Operating Unit Performance |
|||
Decreased profits at TEC due to unfavorable weather, increased OM&G and higher depreciation, partially offset by growth in customer numbers and new base rates |
(22) |
||
Decreased profits at NMGC due to lower asset optimization revenues and higher operating, maintenance and general (“OM&G”) expenses |
(14) |
||
Decreased profits at NSPI due to increased OM&G, partially offset by higher revenues due to new tariffs and increased residential sales volumes |
(11) |
||
Decreased earnings at EES due to less favorable market conditions |
(10) |
||
Increased earnings at PGS due to new base rates, partially offset by higher interest expense, OM&G and depreciation expense |
21 |
||
Increased capital investment income in NSPML primarily due to Maritime Link retention recognized in Q1 2023 |
5 |
||
Corporate |
|||
Increased pre-tax OM&G primarily due to timing of long-term compensation hedges |
(19) |
||
Increase in pre-tax interest expense due to increase in total debt |
(9) |
||
Increased income tax recovery due to increased losses before income tax provision |
7 |
||
Adjusted net profit – 20241.2 |
$ |
216 |
|
1 See “Non-GAAP Financial Measures and Ratios” noted below and “Non-GAAP Segment Results and Reconciliation” for reconciliation to the closest US GAAP measure. |
|||
2 Excludes the effect of MTM adjustments, net of taxes. |
Segment Results and Non-GAAP Reconciliation
For the |
Three months ending March 31 |
|||
million Canadian dollars (except per share amounts) |
2024 |
2023 |
||
Adjusted net profit1.2 |
||||
Florida Electric Utility |
$ |
85 |
$ |
107 |
Canadian Electric Utilities |
87 |
92 |
||
Utilities and gas infrastructure |
98 |
94 |
||
Other electrical utilities |
9 |
4 |
||
Other3 |
(63) |
(29) |
||
Adjusted net profit1.2 |
$ |
216 |
$ |
268 |
MTM gain (loss), after taxes4 |
(9) |
292 |
||
Net profit attributable to common shareholders |
$ |
207 |
$ |
560 |
EPS (basic) |
$ |
0.73 |
$ |
2.07 |
Adjusted EPS (base)1.2 |
$ |
0.76 |
$ |
0.99 |
1 See “Non-GAAP Financial Measures and Ratios” below. |
||||
2 Excludes effect of MTM adjustments. |
||||
3 Mainly due to the timing of long-term incentive compensation in companies, higher corporate interest expenses and lower EES contributions, partially offset by increased income tax recovery in companies. |
||||
4 Net income tax recovery of US$4 million in the three months ended March 31, 2024 (2023 – US$119 million of tax expenses). |
1 Non-GAAP Financial Measures and Ratios
Emera uses financial measures that do not have a standardized meaning under US GAAP and may not be comparable to similar measures presented by other entities. Emera calculates non-GAAP measures and indices by adjusting certain GAAP measures for specific items. Management believes that the exclusion of these items better distinguishes the ongoing operations of the business. For more information about the non-GAAP financial measure, adjusted net income, and the non-GAAP ratio, Adjusted EPS – Basic, see the “Non-GAAP Financial Measures and Ratios” section of Emera’s Q1 2024 MD&A, which is embedded here. by reference and can be found on SEDAR+ at www.sedarplus.ca. Reconciliation to the closest GAAP measure is included in “Segment Results and Non-GAAP Reconciliation” above.
Forward-Looking Information
This press release contains forward-looking information within the meaning of applicable securities laws. By its nature, forward-looking information requires Emera to make assumptions and is subject to inherent risks and uncertainties. These statements reflect the current beliefs of Emera management and are based on information currently available to Emera management. There is a risk that the predictions, forecasts, conclusions and projections that constitute forward-looking information will not prove to be accurate, that Emera’s assumptions may not prove to be correct and that actual results may differ materially from such forward-looking information. Additional detailed information about these assumptions, risks and uncertainties is included in Emera’s securities regulatory filings, including under the heading “Business Risks and Risk Management” in Emera’s Annual Management’s Discussion and Analysis, and under the heading “Key Risks and Uncertainties” in the notes. to Emera’s annual and interim financial statements, which can be found on SEDAR+ at www.sedarplus.ca.
Conference call
The company will host a conference call today, Monday, May 13, at 9:30 a.m. Atlantic (8:30 a.m. Eastern) to discuss first quarter 2024 financial results.
Analysts and other interested parties in North America are invited to participate by calling 1-800-717-1738. International parties are invited to participate by calling 1-289-514-5100. Participants must call in at least 10 minutes before the call begins. No access code is required.
A live and archived audio webcast of the conference call will be available on the Company’s website, www.emera.com. The conference call replay will be available on the Company’s website two hours after the end of the conference call.
About Emera
is a geographically diversified energy and services company headquartered in Halifax, Nova Scotia, with approximately $39 billion in assets and 2023 revenues of $7.6 billion. The company invests primarily in regulated electricity generation and the transmission and distribution of electricity and gas, with a strategic focus on transforming high-carbon energy sources to low-carbon energy sources. Emera has investments in Canada, the United States and three Caribbean countries. Emera’s common and preferred shares are listed on the Toronto Stock Exchange and trade respectively under the symbols EMA, EMA.PR.A, EMA.PR.B, EMA.PR.C, EMA.PR.E, EMA. PR.F, EMA.PR.H, EMA.PR.J and EMA.PR.L. Depositary receipts representing Emera common shares are listed on the Barbados Stock Exchange under the symbol EMABDR and on the Bahamas International Stock Exchange under the symbol EMAB. Additional information can be accessed at www.emera.com or in www.sedarplus.ca.
View the original version on businesswire.com: https://www.businesswire.com/news/home/20240512497080/en/
Contacts
Emera Inc.
relationship with investors
Dave Bezanson, Vice President of Investor Relations and Pensions
902-474-2126
dave.bezanson@emera.com
media
902-222-2683
media@emera.com
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Jio Financial share price: Should you buy this Reliance group stock on Monday ahead of Q1 FY2024 results?
Q1 2024 Results: Jio Financial Share Price will be in focus on Monday as the Reliance Group company has a fixed board meeting on July 15, 2024 to consider and approve the company’s unaudited standalone and consolidated financial results. Trust Group company informed about the Q1 2024 Results date on Wednesday last week via an exchange filing. According to stock market experts, Jio Financial Services Limited is poised to deliver impressive Q1 results for FY25 on solid operating income. They have forecast a healthy QoQ PAT for the company in Q1 FY25.
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Speaking on the Jio Financial Services Q1 2024 results, Manish Chowdhury, Head of Research, StoxBox, said, “We believe Jio Financial Services is poised to deliver impressive results in Q1FY25 aided by its operating income, which is likely to show robust growth driven by strong investment income, which in turn should lead to healthy PAT growth on a sequential basis. Jio Financial Services continues to make strategic moves such as launching digital products and expanding its ecosystem, with a clear focus on future growth. The company has announced plans to introduce products for lending against stocks and mutual funds, leveraging Jio’s large user base, which could be a significant growth driver in the coming quarters.”
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Speaking about the technical outlook of Jio Financial share price, Ganesh Dongre, Senior Manager, Technical Research at Anand Rathi, said, “Jio Financial Services share price is poised to make a fresh high at the ₹260 apiece level. If the stock breaks above this mark, the Reliance Group stock could make a fresh high by touching the ₹290-₹295 zone. Hence, those with Jio Finance stock in their portfolio are advised to stick to the script by keeping a stop loss at ₹205. If the stock breaks above ₹260 decisively, then one can upgrade the stop loss at ₹240 for the near-term target of ₹295.”
On the advice to new buyers regarding Jio Financial stock, Ganesh Dongre said, “New buyers are advised to wait for the breakout. Once the stock breaks above ₹260, one can buy this Reliance Group stock at the short term target of ₹295, keeping a stop loss of ₹240 apiece.”
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage firms, and not of Mint. Investors are advised to consult with certified experts before making any investment decisions.
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