Noting “disruption often presents opportunity at NextEra Energy,” CEO John Ketchum said Jan. 25 the company relied on 25 years of experience with renewable energy to navigate “clear headwinds for renewables” over the past two years.

Ketchum told financial analysts during NextEra’s quarterly earnings call that its competitive, clean energy business, NextEra Resources, had its best year yet by adding about 9 GW of new renewable and storage origination to a backlog that now exceeds 20 GW. About 5.6 GW of renewables and storage were commissioned during the year, NextEra said.

“We successfully managed through the disruption,” Ketchum said. “We believe that the disruption over the last two years has made NextEra Energy an even stronger company. Our business model is more resilient. Our development platform is even more advanced, and our supply chain is more diversified than it has ever been.”

Ketchum noted inflation and inflation rates have declined from their peaks, solar suppliers have been provided with more certainty around rules for imports and new solar supply chains have led to lower panel costs that have declined by about 25% from their peak over the past 24 months.

“Ultimately, all these tailwinds are great for customers, and we believe that should drive greater renewables demand in 2024 and beyond,” he said.

NextEra reported year-end earnings of $7.31 billion ($3.60/share), up from $4.15 billion ($2.10/share) the year before. Fourth-quarter earnings were $1.21 billion ($0.59/share), compared to $1.52 billion ($0.76/share) for the same quarter in 2022.

Ketchum expressed frustration with NextEra’s stock performance this year. The company’s share price closed at $57.98 Jan. 25, down $4.94 from a Jan. 8 peak of $62.92.

“We recognize and are disappointed by the underperformance in the share price, and as we start 2024, we remain steadfast in our continued focus on execution and creating long term value,” Ketchum said. “Bottom line, we believe NextEra Energy is well positioned headed in the 2024.”

Xcel: Coal Closures to Continue

Xcel Energy also reported year-end and fourth-quarter earnings Jan. 25. Annual earnings were $1.77 billion ($3.21/share), compared with $1.74 billion ($3.17/share) for the same period a year ago.

For the quarter, earnings were $409 million ($0.74/share), compared with $379 million ($0.69/share) during the same quarter in 2022. Xcel reaffirmed its 2024 EPS guidance of $3.50-$3.60.

CEO Bob Franzel told financial analysts that the retirement in December of the first of three coal-fired units at the Sherburne County Generating Station (Sherco) sets the stage to retire all of its coal plants by 2030. Sherco’s other two units are targeted for closure in 2026 and 2030. (See Xcel Says Coal Retirements on Track Despite South Dakota PUC’s Plea for Extensions.)

“This is a milestone as we work to exit coal by 2030 and another sign that we’re leading the nation’s clean energy transition,” Franzel told financial analysts.

Xcel plans to replace the units with 2.1 GW of wind and 2.5 GW of solar with what it says will be the largest solar facility in the Midwest.

The company’s share price closed at $58.89, up 67 cents on the day. Xcel opened the year at $63.47.