Emera Reports 2024 Fourth Quarter and Annual Financial Results

HALIFAX, Nova Scotia--(BUSINESS WIRE)--February 21, 2025-- 

Today Emera (TSX: EMA) reported 2024 fourth quarter and annual financial results.

Highlights

   -- Quarterly adjusted earnings per share ("Adjusted EPS") grew 33% to $0.84 
      compared to $0.63 in Q4 2023 driven by solid operating performance across 
      all regulated utilities which offset lower contributions from the 
      Labrador Island Link ("LIL") as a result of the sale of our equity 
      interest in the LIL in Q2 2024. 
 
   -- Full year adjusted EPS of $2.94 was generally in line with 2023 adjusted 
      EPS of $2.96. 
 
   -- Fourth quarter reported EPS of $0.52 compared to $1.04 last year. Full 
      year reported EPS of $1.71 compared to $3.57 in 2023. 
 
   -- Executed largest ever annual capital plan of $3.2 billion, driving 7% 
      rate base growth year-over-year. 
 
   -- Constructive completion of Tampa Electric's ("TEC") rate case resulting 
      in a 10.5% ROE and $185 million USD increase in 2025 revenue, $87 million 
      USD in 2026 and $9 million USD in 2027. 

"2024 was a year of significant progress for Emera. We delivered on our key objectives and in doing so, have strategically positioned the business to meet the evolving demands within our industry and capitalize on the robust organic growth opportunities in our Florida utilities," said Scott Balfour, President and CEO, Emera Inc. "In 2025 our focus will be on executing on our largest ever 5-year $20 billion capital plan, driving value for our utilities' customers through prudent investment in reliability, grid modernization and infrastructure expansion, while at the same time, growing earnings and cash flow for shareholders."

2024 Financial Results

2024 reported net income was $494 million, or $1.71 per common share, compared with a reported net income of $978 million, or $3.57 per common share in 2023. For the year ended December 31, 2024, net income attributable to common shareholders, compared to the same period in 2023, was unfavourably impacted by $225 million in charges, primarily goodwill impairment, related to the pending sale of NMGC, decreased MTM gains and $26 million in charges related to wind-down costs and certain asset impairments and was favourably impacted by the $129 million gain on sale of LIL, and the $58 million tax benefit related to a specific financing structure and its wind-up.

2024 adjusted net income(1) was $849 million, or $2.94 per common share, compared with $809 million, or $2.96 per common share in 2023. The increase in 2024 adjusted net income was primarily due to increased earnings across all of our utilities and increased Corporate income tax recovery. These were partially offset by increased Corporate interest expense; lower equity earnings from LIL due to the Q2 2024 sale; and decreased earnings at Emera Energy.

The translation impact of a weaker CAD on USD earnings was more than offset by the realized and unrealized losses on FX hedges used to mitigate the translation risk of USD earnings, resulting in a $29 million decrease to net income in Q4 2024 and $35 million decrease to net income for the year ended December 31, 2024, compared to the same periods in 2023. Weakening of the CAD increased adjusted net income by $2 million in Q4 2024 and $5 million for the year ended December 31, 2024, compared to the same periods in 2023. Impacts of the changes in the translation of the CAD include the impacts of Corporate FX hedges used to mitigate translation risk of USD earnings in the Other segment.

Q4 2024 Financial Results

Q4 2024 reported net income was $154 million, or $0.52 per common share, compared with net income of $289 million, or $1.04 per common share, in Q4 2023.

For Q4 2024, net income attributable to common shareholders as compared to Q4 2023, was unfavourably impacted by a $260 million increase in MTM losses, the $26 million charges related to wind-down costs and certain asset impairments and favourably impacted by the $58 million tax benefit related to a specific financing structure and its wind-up and the $22 million related to the incremental gain on sale of LIL.

Q4 2024 adjusted net income(1) was $246 million, or $0.84 per common share, compared with $175 million, or $0.63 per common share, in Q4 2023. Adjusted net income increased $71 million, primarily due to increased earnings across all of our regulated utilities and an increased Corporate income tax recovery. These increases were partially offset by lower equity earnings due to the sale of LIL in Q2 2024, increased Corporate operating, maintenance and general expense ("OM&G") due to the timing of long-term incentive expenses and related hedges, increased Corporate interest expense, and decreased earnings at Emera Energy.

(1) See "Non-GAAP Financial Measures and Ratios" noted below and "Segment Results and Non-GAAP Reconciliation" below for reconciliation to nearest GAAP measure.

Consolidated Financial Review

 
The following table highlights significant changes in 
 adjusted net income attributable to common 
 shareholders from 2024 to 2023. 
 
For the                            Three months ended      Year ended 
millions of Canadian dollars              December 31     December 31 
------------------------------   --------------------   ------------- 
Adjusted net income -- 2023 
 (1,2)                               $            175     $       809 
Operating Unit Performance 
Increased earnings at NSPI due 
 to increased income tax 
 recovery, partially offset by 
 higher OM&G due to a lower 
 storm cost deferral                               31              19 
Increased earnings 
 quarter-over-quarter at Other 
 Electric Utilities primarily 
 due to the timing of recovery 
 of fuel costs and lower OM&G. 
 Year-over-year increased 
 primarily due to higher sales 
 volumes, partially offset by 
 higher OM&G                                       17              13 
Increased earnings 
 quarter-over-quarter at NMGC 
 due to higher revenue from new 
 base rates, partially offset 
 by higher income tax expense. 
 Decreased earnings 
 year-over-year due to lower 
 asset optimization revenue, 
 partially offset by higher 
 revenue from new base rates                       14              (4) 
Increased earnings at PGS due 
 to higher revenue from new 
 base rates and customer 
 growth, partially offset by 
 increased interest expense, 
 depreciation, OM&G, and income 
 tax expense                                       11              58 
Increased earnings at TEC due 
 to higher revenues from 
 customer growth and new base 
 rates, and the impact of a 
 weaker CAD, partially offset 
 by higher OM&G, and 
 depreciation. Year-over-year 
 increased earnings also due to 
 lower income tax expense and 
 lower interest expense, 
 partially offset by 
 unfavourable weather                               5              17 
Decreased earnings 
 year-over-year at EES due to 
 favourable hedging 
 opportunities in Q1 2023 and 
 less favourable market 
 conditions in 2024                                (3)            (16) 
Decreased earnings at Bear 
 Swamp Power Company LLC 
 primarily due to the 
 recognition of investment tax 
 credits in 2023                                  (13)            (20) 
Decreased income from equity 
 investments due to the sale of 
 LIL equity interest                              (16)            (32) 
Corporate 
Decreased deferred income tax 
 asset valuation allowance due 
 to the utilization of tax loss 
 carryforwards                                     36              39 
Increased income tax recovery 
 due to increased loss before 
 provision for income taxes                        15              20 
Increased interest expense due 
 to the impact of a weaker CAD 
 on USD interest expense, 
 increased total Corporate debt 
 and increased interest rates                      (9)            (38) 
Increased OM&G 
 quarter-over-quarter primarily 
 due to the timing difference 
 in the valuation of long-term 
 incentive expense and related 
 hedges                                           (16)             (1) 
Other Variances                                    (1)            (15) 
Adjusted net income -- 2024          $            246     $       849 
-------------------------------  -----  -------------   ---  -------- 
 

For further details of reportable segments contributions, refer to the "Financial Highlights" section

Segment Results and Non-GAAP Reconciliation

 
For the                Three months ended      Year ended 
millions of 
Canadian 
dollars 
(except                       December 31     December 31 
per share 
amounts)                2024         2023    2024    2023 
---------------       ------       ------    ----    ---- 
Adjusted net 
income (1) 
Florida Electric 
 Utility           $     120      $   115   $ 644   $ 627 
Canadian 
 Electric 
 Utilities                77           68     232     247 
Gas Utilities 
 and 
 Infrastructure           87           59     267     214 
Other Electric 
 Utilities                21            4      48      35 
Other                    (59)         (71)   (342)   (314) 
----------------      ------       ------    ----    ---- 
Adjusted net 
 income(1)         $     246      $   175   $ 849   $ 809 
----------------      ------       ------    ----    ---- 
Gain on sale of 
 LIL, 
 after-tax(2)             22            -     129       - 
Financing 
 structure 
 wind-up                  58            -      58       - 
Charges related 
 to wind-down 
 costs and 
 certain asset 
 impairments, 
 after-tax(3)            (26)           -     (26)      - 
Charges related 
 to the pending 
 sale of NMGC, 
 after-tax 
 (4,5)                     -            -    (225)      - 
MTM (loss) gain, 
 after-tax(6)           (146)         114    (291)    169 
----------------      ------       ------    ----    ---- 
Net income 
 attributable to 
 common 
 shareholders      $     154      $   289   $ 494   $ 978 

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