the energy blowing from Wall Street

NEXTera ENERGY: the energy that blows from Wall Street

NextEra Energy, is a leading clean energy company based in Juno Beach, Florida. Owner of Florida Power & Light Company, the largest rate-regulated electric utility in the United States, and NextEra Energy Resources, the world’s largest generator of renewable energy from wind and sun and a global leader in battery storage. Through its subsidiaries, NextEra Energy generates clean, emission-free electricity from seven commercial nuclear power units in Florida, New Hampshire and Wisconsin.

2020 RESULTS AND OUTLOOK

NextEra Energy closed last year 2020 with a net result of $ 2,919 billion, or $ 1.48 / share, 22.55% less than in 2019. Only in 4Q20 the Group recorded net losses of $ 5 million, compared to $ 975 million, raised a year ago. NextEra Energy’s performance in 2020 was strong both financially and operationally, and the Group was able to carry out the deployment of an investment of more than $ 14 billion in capital.

In 2020, the Energy Group continued to advance its position as the leading developer and operator of wind, solar and battery storage projects, doubling the renewable MW commissioned compared to the previous year, and executing the largest construction program in the history of the company. In addition, it continued to capitalize on the disruptive factors that are reshaping the energy industry, adding a net record of almost 7,000 MW to its order book. Now the company is aiming to build approximately 23 to 30 GW of new renewables in the 2021-2024 period, which would mean multiplying NextEra Energy Resources’ renewables operating portfolio by 1.5 per year by the end of 2019.

During 2020, Florida Power & Light Company (FPL) successfully executed its strategic initiatives, including commissioning more than 1,100 MW of solar energy. This solar expansion is part of FPL’s SolarTogether community program and innovative “30 by 30” plan, which is one of the largest solar expansions in the world and would result in approximately 10,000 MW of total solar capacity in FPL’s system by 2030. Additionally, the 409 MW Manatee Energy Storage Center, which will be the world’s largest integrated solar power battery system, continues to operate and on budget to be commissioned later in 2021.

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On the other hand, FPL notified the Florida Public Utilities Commission of a new four-year rate plan that would begin in January 2022, after extending its freeze by one year. While the proposal is still being finalized, FPL expects to request base rate adjustments of approximately $ 1.1 billion, starting in January 2022, and $ 615 million, starting in January 2023.

FORECASTS

By 2021, NextEra Energy expects adjusted earnings per share to be in the range of $ 2.40 to $ 2.54.

For 2022 and 2023, NextEra Energy expects to grow between 6% and 8% of expected adjusted earnings per share for 2021. This translates into a range of adjusted earnings per share of $ 2.55 to $ 2.75 and $ 2.77 to $ 2.97, respectively.

NEXTera ENERGY: the energy that blows from Wall Street NEXTera ENERGY: the energy that blows from Wall Street

NEXTera ENERGY: the energy that blows from Wall Street

SHAREHOLDER REMUNERATION

The Group has proposed to increase its dividends by 10% per year until at least 2022 from a 2020 base. Under this plan, the quarterly dividend of $ 0.385 / share has already been approved (equivalent to $ 1.54 / share before the last split carried out by the company), 10% more than the same quarter of a year ago. The dividend will be paid on March 15, 2021 to shareholders of record on February 26, 2021.

FUNDAMENTAL ASSESSMENT

In a valuation by multiples and under the forecast of 2021 results, with an estimated EPS of $ 2.65 / share, the market discounts a PER of 29v, from a PER at the end of 2020 of 33.2v. The ratio over sales also remains below historical levels, and moderate compared to its competitors (PSV 7.15v); The EV / EBITDA multiple moves at moderate levels and the market pays 3.75v its book value.

NEXTera ENERGY: the energy that blows from Wall Street NEXTera ENERGY: the energy that blows from Wall Street

NEXTera ENERGY: the energy that blows from Wall Street

Based on our fundamental assessment, the recommendation is positive for the medium / long term value.

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