Boston, MA 05/01/2014 (wallstreetpr) – NextEra Energy, Inc. (NYSE:NEE) to a record level as the U.S. largest wind turbine operator said that it intends to form a distinct yield vehicle for its renewable power plants.
Indicates Formation Of Yieldco
After posting robust earnings, for the first quarter, NextEra Energy, Inc. (NYSE:NEE) revealed that it has filed a proposal with the U.S. Securities and Exchange Commission (SEC) for initial public offering of the yieldco. The company’s CEO, Jim Robo, briefed that the number of shares to be sold and their price has not yet been fixed. NextEra is one among several of developers based out in North America and Europe that either have already formed a yieldco or are considering to create one. A yield company meant for operation of power plants. Through creation of this entity, a business gets advantage of lower capital costs and increased liquidity, resulting in long-term cash flows for the investors. Robo added that the creation of yieldco would not have any adverse impact on NextEra’s credit.
The company’s Chief Financial Officer, Moray Dewhurst has last mentioned in November, 2013 that the company is looking at the option of forming a yieldco so as to own nearly 2,000 megawatts of plants with long-term power contracts. Since the majority of the solar projects or wind plants are eligible for tax breaks, therefore, creating a yieldco would fetch higher returns than in the form of a corporation.
Solid First Quarter
NextEra Energy, Inc. (NYSE:NEE)’s first quarter net income came in at $430 million; that is $0.98 per share as against $272 million or $0.64 per share in the same quarter previous year. At the same time, the adjusted earnings stood at $1.26 per share, higher than $1.12 per share in the first quarter of the previous year. The jump of nearly 58% in its earnings is credited to the significant revenues generated by its Florida utility holding.
