The Juno Beach, Florida-based company will benefit from its access to cheap financing and other advantages as its smaller rivals struggle,
“We’re actually seeing more opportunities coming our way,” Ketchum said.
NextEra was the first major U.S. utility to report quarterly earnings and said its performance has been largely unaffected by the pandemic. Its results exceeded analysts expectations, and the company left its outlook unchanged.
The shares rose 5% Wednesday.
“It seems as though everything is running smoothly,” Scotiabank analyst
NextEra’s become the world’s first utility with a market capitalization of more than $100 billion last year, thanks largely to its clean-power business. It has wind and solar farms in about two dozen U.S. states and four Canadian provinces. Demand for renewables should remain strong amid falling costs relative to other sources of energy, executives said.
“We believe the market opportunity for low-cost renewables has never been greater,” Chief Executive Officer
During the first quarter, NextEra added more than 1.6 gigawatts of wind and solar projects to its pipeline. Most deals were closed remotely.
NextEra’s strong first-quarter performance and outlook underscores how utilities may be better poised to weather the pandemic than other sectors. While power use has ebbed as millions of businesses close, residential demand remains robust.
Yet it remains to be seen whether utilities elsewhere in the U.S. will fare as well. Officials in Florida were slower to impose sweeping lockdowns than leaders in New York, California and elsewhere. Plus, warm southern weather helped drive up electricity use 10% over the past four weeks in NextEra’s territory compared to the past two years.
(Adds analyst comment in the sixth paragraph.)
To contact the reporter on this story:
To contact the editors responsible for this story:
© 2020 Bloomberg L.P. All rights reserved. Used with permission.