Fortis (FTS) Misses Q4 EPS by 1c

Fortis (NYSE: FTS) reported Q4 EPS of $0.69, $0.01 worse than the analyst estimate of $0.70.

Highlights

• Reported annual net earnings of $1,209 million, or $2.60 per common share in 2020
• Delivered adjusted net earnings2 of $1,195 million, or $2.57 per common share, up from $1,115 million, or $2.55 per common share in 2019
• Executed record capital expenditures of $4.2 billion yielding annual rate base growth of 8.2%3
• Received constructive final order on Tucson Electric Power's general rate application with new customer rates effective January 1, 2021
• Established a new corporate-wide emissions reduction target of 75% by 2035

"2020 proved to be a successful year on many fronts. Despite the challenges presented by the pandemic, our 9,000 dedicated employees continued to reliably provide essential energy service to our customers and executed our largest annual capital program while achieving our best safety performance on record," said David Hutchens, President and Chief Executive Officer, Fortis. "Our teams also worked with their regulators and communities to help customers who have been most impacted by the pandemic, demonstrating our core values and the benefits of our local business model."

"Sustainability remains front and center across our utilities," said David Hutchens. "With the strength of our low-risk growth outlook and the talent of our North American team, we are positioned well to deliver a cleaner energy future."

Outlook

The Corporation maintains its positive long-term outlook. Fortis continues to enhance shareholder value through the execution of its capital plan, the balance and strength of its diversified portfolio of utility businesses, and growth opportunities within and proximate to its service territories. While uncertainty exists due to the COVID-19 pandemic, the Corporation does not currently expect it to have a material financial impact in 2021.

The Corporation's five-year capital plan is expected to increase rate base from $30.5 billion in 2020 to $36.4 billion by 2023 and $40.3 billion by 2025, translating into three- and five-year compound annual growth rates3 of approximately 6.5% and 6.0%, respectively. Beyond the five-year capital plan, Fortis continues to pursue additional energy infrastructure opportunities, including: further expansion of liquefied natural gas infrastructure in British Columbia; the fully permitted, cross-border, Lake Erie Connector electric transmission project in Ontario; and the acceleration of cleaner energy infrastructure investments across our jurisdictions.

Fortis expects long-term growth in rate base will support earnings and dividend growth. The Corporation is targeting average annual dividend growth of approximately 6% through 2025. This dividend growth guidance is premised on the assumptions listed under "Forward-Looking Information" below, including no material impact from the COVID-19 pandemic, the expectation of reasonable outcomes for regulatory proceedings and the successful execution of the five-year capital plan.

For earnings history and earnings-related data on Fortis (FTS) click here.

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