US clean energy assets owner NextEra Energy Partners LP (NYSE:NEP) enjoyed growing earnings and revenues in 2022, enabling it to boost limited partner distributions per unit by approximately 15% year-over-year.
The Florida-based company, which was formed by NextEra Energy Inc (NYSE:NEE) to acquire, manage and own wind, solar and energy storage facilities as well as natural gas infrastructure in the US, on Wednesday posted adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of USD 1.65 billion (EUR 1.51bn), up 21.3% on the year, and cash available for distribution (CAFD) of USD 634 million, which rose by 8.6%.
The growth-oriented limited partnership’s net attributable income more than tripled, reaching USD 477 million.
The improved performance in the past year reflects the further diversification of the company’s portfolio of clean energy assets. The most significant deal was the acquisition of a 50% stake in a 2.5-GW portfolio of long-term contracted renewables and storage assets from NextEra Energy Resources.
"NextEra Energy Partners had a terrific year of execution in 2022, while delivering on its commitments to unitholders," said chairman and CEO John Ketchum.
| Amounts in USD million |
Q4 2022 |
Q4 2021 |
2022 |
2021 |
| Total operating revenues |
266 |
232 |
1,211 |
982 |
| Operating income (loss) |
(18) |
23 |
197 |
234 |
| Adj EBITDA |
360 |
322 |
1,650 |
1,360 |
| CAFD |
74 |
91 |
634 |
584 |
| Net attributable income (loss) |
35 |
(10) |
477 |
137 |
“We continue to believe NextEra Energy Partners is extremely well positioned with ample liquidity to finance future growth and to capture a meaningful share of the long-term opportunity set in renewables [..],” the CEO added.
Looking ahead, NextEra Energy Partners guided for 12% to 15% growth per year in limited partner distributions per unit through 2026, a year beyond its original forecast. The company’s run-rate projections for adjusted EBITDA for 2023 remain unchanged, at USD 2.22 billion-2.42 billion, and CAFD of USD 770 million-860 million. The annualized rate of the fourth-quarter 2023 distribution payable in February 2024 is seen to range between USD 3.64 and 3.74 per common unit.
(USD 1.0 = EUR 0.917)
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Author: Ken Teegardin. Licence: Creative Commons, Attribution-ShareAlike 2.0 Generic.
