Shares of the top 5 US utilities have risen since the beginning of the year.
Since the beginning of 2021, the shares of the five most prominent companies in the US utility sector by capitalization have grown to 16.58%. We will tell you what is happening with the enterprises, as well as what are their financial results.
S&P 500 utility company with the largest capitalization of $ 151.4 billion in NextEra Energy Inc. It is a Fortune 200, S&P 100 listed, a 2021 Utility & Gas Leader, Awarded by S&P Global Platts for Environmental, Social, and Governance Leadership.
NextEra Energy is a zero-emission electricity producer at seven commercial nuclear power units in the United States, with several subsidiaries Florida Power & Light, NextEra Energy Resources, NextEra Energy Partners, and NextEra Energy Services. In addition, one of its subsidiaries – NextEra Energy Resources – works in the field of generating alternative energy (wind and solar).
At the end of the second quarter of 2021, NextEra Energy received a GAAP net income of $ 256 million, or $ 0.13 per share. At the end of the same period in 2020, this figure was a significant amount – almost $ 1.28 billion, or $ 0.65 per share. In turn, adjusted earnings for the reporting period this year were nearly $ 1.4 billion, or $ 0.71 per share, versus $ 1.29 billion, or $ 0.65 per share, in 2020.
The company’s shares day of publication of reports on July 23 rose at the close of trading by 1.42%, to $ 77.2.
Also, during the reporting period, namely on May 20, the company announced a dividend payment of $ 0.385 share, which was too on June 15 to all shareholders registered on June 2 of this year.
On June 7, 2021, NextEra Energy announced that its subsidiary Florida Power & Light had installed more than 12 million solar panels in Florida, surpassing 40% of its 30-by-30 plan to install 30 million solar panels by 2030. The stock gained 0.18% that day, to $ 72.47 per unit.
The company’s forecasts, in 2021, the adjusted earnings per share will be in the corridor from $ 2.4 to $ 2.54, 2022 and 2023, it will increase by another 6-8% from the indicators of the current year.
Beginning of the year, growth in the value of securities amounted to 3.62% from $ 74.22, and for the year – 10.81%, $ 69.41 to $ 76.91, time close of trading stock exchange July 26.
In April 2021, Finam analysts recommended buying NextEra Energy shares with a target price of $ 109.3 for 12 months. One of the reasons the experts justified they decided that renewable energy has become a fast-growing segment in 2020, despite the crisis and a general decline in consumption. In addition, they believe that capital investment will lead to business expansion, higher profits and dividends, and an increase in market share.
With a capitalization of nearly $ 80.4 billion, the second company is the North Carolina-headquartered Duke Energy Corporation, which produces electricity and natural gas. The company operates in three main sectors – Power & Infrastructure, Gas & Infrastructure, and Commercial Renewable Energy.
According to Power-technology.com, according to the company’s financial statements, Duke Energy earned $ 992 million in net income for the first quarter of 2021, up from $ 938 million in the same quarter of 2020. Growth in annual terms – almost 5.8%. Net earnings per share were at $ 1.25 versus $ 1.24 last year. Adjusted profit increased to $ 1.26 from $ 1.14 a year earlier.
The company’s revenue in the reporting period was approximately $ 6.15 billion, compared with $ 5.94 billion a year earlier. The sector “Electricity and Infrastructure” had the most significant impact on the company’s positive results.
Duke Energy President and Chief Executive Officer Lynn Goode noted that the company has had a perfect start this year and is meeting its commitments to customers, communities, and investors. As a result, the adjusted projected earnings per share range remained from $ 5 to $ 5.3.
The WSJ announced that the American investment management company Elliott Management had acquired a stake in Duke Energy Corp. and wants to make changes to the board of directors, and may also require the company to sell certain assets or make operational improvements.
The company’s shares from the beginning of the year close of trading on July 26 on the NYSE rose by 16.58% to $ 104.58, increased in price by 28.65% ver the year.
Note that the company will publish its reports for the II quarter on August 5, 2021.
The third-largest company in terms of capitalization is the gas and electricity holding Southern Company. Its market capitalization was $ 67.7 billion as of July 23.
The company posted a net income of $ 1.14 billion, or $ 1.07 per share, for the first quarter of 2021, compared to $ 868 million, or $ 0.82 per share, in the same period last year. The increase in net profit, according to the company, was due to the rise in the number of customers, higher sales of residential real estate, and cold weather.
The chairman of the company, Thomas A. Fanning, the economy in the territories served company is beginning to recover from the COVID-19 pandemic.
Shares at the close trading day of publication of reports on April 29, 2021, rose n the NYSE by 1.27% to $ 65.16.
On July 12, 2021, it became known that Southern Company has become one of the best IT jobs this year, ranking 24th out of 100 in the IDG Insider Pro and Computerworld ratings
A week after the rating news, on July 19, 2021, the company announced a quarterly dividend of $ 0.66 per common share due September 7 to shareholders registered on August 16. After the news, the company’s shares fell 0.51% to $ 62.79.
In general, the company’s shares from the beginning of the year to July 26, inclusive, rose 7.36% on the NYSE to $ 63.73. Over the year, securities rose by 17.45%.
Dominion Resources Inc. ranked fourth in terms of market capitalization among US utilities. Its capitalization was $ 60.75 billion as of July 23, 2021. The company supplies electricity or natural gas to over 7 million customers in 16 American states.
On May 4, the company announced its financial results for the first quarter of 2021. Dominion Resources earned $ 1 billion, or $ 1.23 per share, in the reporting period this year, compared with a loss of $ 270 million and $ 0.34 per share in the same period in 2020.
Operating income in the first quarter of 2021 was $ 893 million, or $ 1.09 per share, up 13.3% year-on-year. For January-March 2020, it was $ 788 million, or $ 0.92 per share. Company’s expectations, operating income in the second quarter of 2021 will be in the corridor from $ 0.7 to $ 0.8 per share, end of the entire year – from $ 3.7 to $ 4.
On the day of publication of reports, the company’s shares close of trading on the NYSE fell 1.19%, from $ 80.37 to $ 79.41.
In general, the company’s shares beginning of the year has risen in price by 1.62%, to $ 75.09, close of trading on July 26 on the NYSE. Over the year, securities fell 6.39% from $ 80.22 at the close on July 27, 2020.
In fifth place by the capitalization of the top companies in the US utility sector is the energy company Exelon Corp. with nearly $ 45.5 billion. The company serves about 10 million customers in Delaware, DC, Illinois, Maryland, New Jersey, and Pennsylvania through its subsidiaries Atlantic City Electric, BGE, ComEd, Delmarva Power, PECO, and Pepco conducts business in 48 states. At the end of 2020, the company’s revenue amounted to $ 33 billion.
According to the latest available data, the company performed worse in the first quarter of 2021 than last year. So, it ended the quarter with a GAAP net loss of $ 793 million against a profit of $ 45 million in 2020. Loss per share this year was $ 0.3 versus $ 0.6 profit. Adjusted (non-GAAP) operating loss for Q1 2021 was $ 0.06 versus earnings of $ 0.87 per share last year.
In its first-quarter reporting, the company has confirmed a range of adjusted (non-GAAP) operating income for 2021 of $ 2.60– $ 3.00 per share.
As a result of trading on May 5, the day of publication of reports, the company’s shares NASDAQ reacted with a fall of 2.79% to $ 43.53. general, beginning year, the company’s shares have risen in price by 12.73%, from $ 41.17 (as of January 4) to $ 46.41 at the close trading on July 26. Over the year, the growth in the value of securities amounted to 23.5% from $ 37.58 on July 27, 2020.
Overall, according to analyst Harrison Schwartz, published on Seeking Alpha, the move to clean energy “could create bullish and bearish factors that utilities must carefully navigate in a changing world”.
