Avangrid Inc (NYSE: AGR) stock rose 1.09% on Feb 19th, 2019 (Source: Google finance) after the company reported the U.S. GAAP net income of $119 million, for the fourth quarter ended December 31, 2018, compared to a net loss of $77 million for the same period in 2017. AGR’s two New England clean energy strategic projects are advancing and is on track. Vineyard Wind, the 800 MW offshore wind farm in a joint-venture with Copenhagen Infrastructure Partners, and the NECEC transmission project are both making progress on key approvals and permits and the company continue to expect to begin construction in late 2019.
AGR in the fourth quarter of FY 18 has reported the adjusted earnings per share of 56 cents, missing the analysts’ estimates for the adjusted earnings per share of 62 cents. The company had reported the adjusted revenue of $1.67 billion in the fourth quarter of FY 18.
Moreover, for the fourth quarter 2018, Avangrid Networks earned $103 million compared to $124 million for the same period in 2017. Earnings for the fourth quarter benefited primarily from the implementation of the multi-year rate plans and lower restructuring charges, which were more than offset by non-deferrable storm-related costs (minor storms and related impacts), increased depreciation expenses, the absence of performance incentives which expired in 2017 and higher tax sharing adjustments (partially offset in Corporate). For the fourth quarter 2018, Avangrid Renewables earned $7 million compared to $218 million for the same period in 2017. Earnings for the fourth quarter compared to the same period in 2017 benefited from increased wind generation from new capacity (although below expectations), and income from the sale of projects in development and the absence of an impairment of an equity method investment recorded in 2017, partially offset by expiring tax credits.
Meanwhile, AGR had completed the sales of the Gas Storage and Trading and businesses on May 1 and March 1 2018, respectively. For the fourth quarter 2018, Gas Storage and Trading had reported net income of $1 million, compared to a net loss of $472 million for the same period in 2017. For the full year 2018, Gas Storage and Trading incurred a net loss of $19 million, or $0.06 per share, compared to net loss of $508 million, or $1.64 per share, compared to the full year 2017
For FY 19, the company expects the earnings per share to be in the range of $2.25-$2.40.