HARTFORD, Conn. & BOSTON--(BUSINESS WIRE)--Eversource Energy (NYSE: ES) today reported full-year 2020 earnings of $1.205 billion, or $3.55 per share, compared with 2019 earnings of $909.1 million, or $2.81 per share. Results for 2020 include after-tax costs of $32.1 million, or $0.09 per share, related to the acquisition of the assets of Columbia Gas of Massachusetts. Results for 2019 include a charge of $204.4 million, or $0.64 per share, related to the Northern Pass Transmission (NPT) project.
In the fourth quarter of 2020, Eversource Energy earned $271.9 million, or $0.79 per share, compared with earnings of $250 million, or $0.76 per share, in the fourth quarter of 2019. Results for the fourth quarter of 2020 include after-tax costs of $19.3 million, or $0.06 per share, related to the Columbia Gas asset acquisition.
2021 and Long-Term Earnings Per Share (EPS) Guidance
Also today, Eversource Energy projected 2021 non-GAAP earnings of between $3.81 per share and $3.93 per share, excluding incremental Columbia Gas asset transition costs. Eversource also projects that its long-term EPS growth through 2025 from its core regulated utility segments will be in the upper half of its previously announced range of 5-7 percent, using 2020 non-GAAP earnings of $3.64 per share as the base.
Electric Distribution
Eversource Energy’s electric distribution segment earned $544 million for the full year 2020, compared with earnings of $513.3 million for the full year 2019. The segment earned $93.4 million in the fourth quarter of 2020, compared with earnings of $90.7 million in the fourth quarter of 2019. Improved results were due to higher revenues, partially offset by significantly higher electric system restoration costs during an unprecedented year of storm activity.
“Tropical Storm Isaias was by far the worst storm to damage our system in 2020, but it was far from the only one,” said Jim Judge, Eversource chairman, president and chief executive officer. “We had more storm activity in 2020 than in any year in our history, right up through Christmas Day when thousands of Eversource employees responded to extremely high and damaging winds that caused extensive damage across our service territory. It was the most recent of dozens of instances in 2020 where Eversource employees worked tirelessly and safely through the pandemic to maintain and restore vital services to our 4.3 million customers.”
Electric Transmission
Eversource Energy’s transmission segment earned $502.5 million for the full year of 2020, compared with earnings of $460.9 million1 in 2019, excluding the NPT charge. The transmission segment earned $120.7 million in the fourth quarter of 2020, compared with earnings of $118.1 million in the fourth quarter of 2019. Higher earnings in 2020 were due primarily to an increased level of investment in Eversource Energy transmission facilities.
Natural Gas Distribution
Eversource Energy’s natural gas distribution segment earned $135.6 million1 for the full year 2020, excluding acquisition-related costs in the fourth quarter of $1.5 million, compared with earnings of $96.2 million for the full year 2019. Fourth quarter 2020 natural gas segment earnings were $62.3 million1, excluding acquisition-related costs, compared with earnings of $39.6 million in the fourth quarter of 2019. Improved results primarily reflect fourth quarter 2020 earnings from assets of the former Columbia Gas of Massachusetts. Eversource closed on the purchase on October 9, 2020 and now holds them in its new Eversource Gas Company of Massachusetts subsidiary. Improved results also reflect higher distribution revenues at NSTAR Gas and Yankee Gas, partially offset by higher O&M and depreciation expense.
Water Distribution
Eversource Energy’s water distribution segment earned $41.2 million for the full year 2020, compared with earnings of $34.9 million for the full year 2019, and $5.6 million in the fourth quarter of 2020, compared with $8.5 million in the fourth quarter of 2019. Higher full-year results in 2020 include the benefit from the sale of Aquarion Water facilities in Hingham, Massachusetts.
Eversource Energy Parent and Other Companies
Eversource Energy parent and other companies earned $14 million1 for the full year 2020, excluding acquisition-related costs of $30.6 million, compared with earnings of $8.2 million for the full year 2019. It earned $9.2 million1 in the fourth quarter of 2020, excluding acquisition-related costs of $17.8 million, compared with a loss of $6.9 million in the fourth quarter of 2019. Improved fourth-quarter results were due primarily to a lower effective tax rate.
The following table reconciles 2020 and 2019 fourth quarter and full year earnings per share:
|
Fourth Quarter |
Full Year |
||||||
|
2019 |
Reported EPS |
$0.76 |
$2.81 |
||||
|
Higher electric distribution revenues in 2020, offset by significantly higher storm restoration expense, as well as higher depreciation, interest expense and dilution |
(0.01 |
) |
0.04 |
||||
|
Higher electric transmission earnings in 2020, excluding NPT impairment, offset by dilution |
(0.01 |
) |
0.05 |
||||
|
Addition of Eversource Gas Co. of MA and higher natural gas distribution revenues in 2020, offset by higher O&M, depreciation, and dilution |
0.06 |
0.12 |
|||||
|
Higher water earnings in 2020 and dilution |
0.00 |
0.01 |
|||||
|
Lower effective tax rate at Parent in 2020, partially offset by lower second-quarter earnings in 2020 related to clean energy fund investment and all Other, including net COVID impact |
0.05 |
(0.03 |
) |
||||
|
Absence of NPT impairment charge |
0.00 |
0.64 |
|||||
|
Costs related to Columbia Gas of MA asset purchase |
(0.06 |
) |
(0.09 |
) |
|||
|
2020 |
Reported EPS |
$0.79 |
$3.55 |
||||
Financial results by segment for the fourth quarter and full-year 2020 and 2019 are noted below:
|
Three months ended: |
|||||||||||||||||
|
(in millions, except EPS) |
December 31, 2020 |
December 31, 2019 |
Increase/ (Decrease) |
2020 EPS1 |
|||||||||||||
|
Electric Distribution |
$93.4 |
$90.7 |
$2.7 |
$0.27 |
|||||||||||||
|
Electric Transmission |
120.7 |
118.1 |
2.6 |
0.35 |
|||||||||||||
|
Natural Gas Distribution |
62.31 |
39.6 |
22.7 |
0.18 |
|||||||||||||
|
Water Distribution |
5.6 |
8.5 |
(2.9 |
) |
0.02 |
||||||||||||
|
Eversource Parent and Other Companies |
9.21 |
(6.9 |
) |
16.1 |
0.03 |
||||||||||||
|
Columbia Gas of MA asset acquisition costs |
(19.3 |
) |
0.0 |
(19.3 |
) |
(0.06 |
) |
||||||||||
|
Reported Earnings |
$271.9 |
$250.0 |
$21.9 |
$0.79 |
|||||||||||||
|
Full year ended: |
|||||||||||||||||
|
(in millions, except EPS) |
December 31, 2020 |
December 31, 2019 |
Increase/ (Decrease) |
2020 EPS1 |
|||||||||||||
|
Electric Distribution |
$544.0 |
$513.3 |
$30.7 |
$1.60 |
|||||||||||||
|
Electric Transmission |
502.5 |
460.9 |
41.6 |
1.48 |
|||||||||||||
|
Natural Gas Distribution |
135.6 |
1 |
96.2 |
39.4 |
0.40 |
||||||||||||
|
Water Distribution |
41.2 |
34.9 |
6.3 |
0.12 |
|||||||||||||
|
Eversource Parent and Other Companies |
14.0 |
1 |
8.2 |
5.8 |
0.04 |
||||||||||||
|
NPT impairment charge |
0.0 |
(204.4 |
) |
204.4 |
0.00 |
||||||||||||
|
Columbia Gas of MA asset acquisition costs |
(32.1 |
) |
0.0 |
(32.1 |
) |
(0.09 |
) |
||||||||||
|
Reported Earnings |
$1,205.2 |
$909.1 |
$296.1 |
$3.55 |
|||||||||||||
Eversource Energy has approximately 343 million common shares outstanding and operates New England’s largest energy delivery system. It serves approximately 4.3 million electric, natural gas and water customers in Connecticut, Massachusetts and New Hampshire.
