Avangrid, Inc.

For full-year 2023, Avangrid reported EPS of $2.03 and adjusted EPS of $2.09, with adjusted earnings growth of 19% year over year excluding $181 million from the 2022 offshore wind gain and $37 million from IRA upfront tax benefits. Fourth-quarter 2023 EPS was $1.03 versus $0.38 in Q4 2022, and adjusted EPS was $0.97 versus $0.39. Q4 Networks results were $0.94, up $0.53 year over year, while Q4 Renewables was minus $0.02, down $0.23 year over year. Management guided 2024 EPS and adjusted EPS to $2.17 to $2.32 per share, said the midpoint implies 8% adjusted EPS growth versus 2023, and reiterated no assumed equity issuance in 2024. The company also said end-2023 liquidity was $3 billion, covering 15 months, and FFO to debt was around 14% on a pro forma basis. At the end of 2023, the board had declared a quarterly dividend of $0.44 per share payable April 1, 2024, and the full-year dividend paid was $1.76 per share.

Pedro Azagra framed 2023 as a transformational year that removed legacy uncertainty and set up the company for long-term organic growth. He emphasized strong execution in regulated utilities, selective onshore renewable growth, and disciplined decisions like ending the PNM merger and exiting Commonwealth Wind and Park City Wind to avoid larger losses. His tone was confident and upbeat, repeatedly stressing that Avangrid is focused on core earnings, infrastructure investment, repowering, and completing major projects like Vineyard Wind 1 and NECEC.

Justin Lagasse walked through the quarter’s bridge, citing Q4 2023 adjusted EPS of $0.97 and explaining the main drivers: $0.22 from New York rate changes, $0.19 from uncollectibles treatment, and $0.04 from NECEC AFUDC, partly offset by higher O&M and interest costs. On Renewables, he said lower wind generation and weaker merchant prices reduced earnings by $0.07, while thermal and asset management added $0.07 on wider spark spreads. He also highlighted financing progress, including a $1.2 billion Vineyard Wind tax equity transaction, up to $100 million of tax credit transfers, $1.3 billion of green bonds, $115 million of utility notes, and an $800 million green term loan; he said liquidity was $3 billion and the company sees no need for equity issuance in 2024.

Analysts focused on asset sales, M&A, Vineyard Wind ITCs, repowering economics, Connecticut regulation, NECEC construction, and the long-term outlook timing. Management said asset sales and partnerships remain possible but are not baked into 2024 guidance, and said Avangrid will focus on organic growth rather than M&A for now because of the large regulated and repowering investment pipeline. On Vineyard Wind, management said it is working to finalize the ITC amount, has secured 30% of the ITCs so far, and stressed that finishing the project matters more than an exact completion month. On Connecticut, Pedro called the rate case outcome disappointing and said the company is litigating while defending reliability and lawful returns; on NECEC, Catherine Stempien said construction is progressing well, with 25% of foundations and 20% of poles set.