NextEra Swings to $2 Billion Profit in Q1 2023 on Renewable Capacity Addition
The company’s clean energy business posted a net profit of $1.44 billion for Q1
U.S.-based energy firm NextEra Energy posted a profit of $2.09 billion for the first quarter (Q1) of the financial year (FY) 2023 against a loss of $451 million in Q1 FY 2022.
NextEra Energy is a holding company for a regulated retail utility (the combined Florida Power & Light (FPL) and Gulf Power that together have about six million customer accounts and an unregulated generation subsidiary, NextEra Energy Resources, which generates clean energy from solar, wind, and nuclear power.
During Q1, Florida Power & Light commissioned approximately 970 MW of new solar capacity, which fuelled the total profit of NextEra Energy. FPL’s total owned and operated solar portfolio stood at 4,600 MW by the end of Q1.
FPL posted a year-over-year (YoY) increase of 22% in net income at $1.07 billion for Q1, primarily driven by continued investment in the business. Florida Power’s average number of customers increased by 65,000 compared to the same period last year.
NextEra’s clean energy business NextEra Energy Resources posted a profit of $1.44 billion for Q1 against a net loss of $1.5 billion in the same quarter a year ago.
Source: NextEra Energy
Also in March, the clean business of NextEra closed on its previously announced acquisition of a large portfolio of operating landfill gas-to-electric facilities, from which the company realizes double-digit returns.
NextEra Energy Resources also recently executed a memorandum of understanding for a joint venture (JV) with ammonia producer CF Industries.
The JV will deliver green hydrogen to an existing CF Industries ammonia production facility, which it intends to expand to incorporate green hydrogen as part of its production process. The proposed facility includes an approximately 450-MW renewable energy solution that would power a 40-ton-per-day hydrogen facility.
Also, in December 2022, chemical company INEOS Olefins & Polymers USA announced a renewable power purchase agreement with NextEra Energy Resources for a 310 MW solar project in Texas. NextEra Energy Resources said it would construct, own, and operate the project, which will be located in Bosque County, Texas. The project is expected to produce 730,000 MWh of clean energy annually, sufficient to power over 68,000 homes annually.
NextEra Energy reported a net income of $1.52 billion for the fourth quarter of 2022, up by 26.41% YoY, driven primarily by successful executions of growth initiatives by all company businesses. The company’s net income for 2022 increased by 16% to $4.15 billion.