Avangrid, Inc. (AGR) Bundle
A Brief History of Avangrid, Inc.
Avangrid, Inc. is an energy services holding company, primarily engaged in the regulated energy transmission and distribution business through its subsidiary Avangrid Networks, Inc., and in renewable energy generation through Avangrid Renewables Holding, Inc. As of September 30, 2024, Avangrid is 81.6% owned by Iberdrola, S.A., a Spanish multinational electric utility company.
Recent Financial Performance
For the three months ended September 30, 2024, Avangrid reported a net income attributable to the company of $205 million, compared to $59 million for the same period in 2023. The earnings per share (EPS) for the third quarter of 2024 were $0.53, up from $0.15 in 2023. For the nine months ended September 30, 2024, net income attributable to Avangrid increased to $725 million from $389 million in 2023, with an EPS of $1.87 compared to $1.00 from the prior year.
| Period | Net Income (Millions) | EPS (Basic) | EPS (Diluted) |
|---|---|---|---|
| Q3 2024 | $205 | $0.53 | $0.53 |
| Q3 2023 | $59 | $0.15 | $0.15 |
| 9M 2024 | $725 | $1.87 | $1.87 |
| 9M 2023 | $389 | $1.00 | $1.00 |
Dividends and Stock Performance
On September 26, 2024, Avangrid's board declared a quarterly dividend of $0.44 per share, payable on January 2, 2025. The company has consistently returned value to shareholders with dividends declared of $1.32 per share for the full year 2023.
Capital Expenditures and Investments
Avangrid's capital expenditures for the nine months ended September 30, 2024, amounted to $2,854 million, reflecting significant investments in infrastructure and renewable energy projects. The company continues to focus on expanding its renewable energy capacity, with total assets reported at $46,733 million as of September 30, 2024.
| Year | Capital Expenditures (Millions) | Total Assets (Millions) |
|---|---|---|
| 2024 | $2,854 | $46,733 |
| 2023 | $2,078 | $43,989 |
Debt and Financial Obligations
As of September 30, 2024, Avangrid had $1,928 million of commercial paper outstanding, with a weighted-average interest rate of 5.10%. The company’s interest expense for the nine months ended September 30, 2024, was $379 million, up from $301 million in the same period of 2023.
| Debt Type | Amount (Millions) | Weighted-Average Interest Rate |
|---|---|---|
| Commercial Paper | $1,928 | 5.10% |
Environmental and Regulatory Considerations
Avangrid is subject to various environmental regulations and has entered into agreements to manage its environmental liabilities. The company has recorded $20 million as a reserve related to the English Station environmental proceedings as of September 30, 2024.
Future Outlook
Avangrid's strategic focus remains on enhancing its renewable energy portfolio and maintaining its position as a leading energy provider in the U.S. The company is positioning itself to benefit from the growing demand for clean energy solutions while managing its regulatory obligations and financial performance effectively.
A Who Owns Avangrid, Inc. (AGR)
Ownership Structure
As of 2024, Avangrid, Inc. (AGR) is primarily owned by Iberdrola, S.A., which holds approximately 81.6% of the outstanding common stock of Avangrid. The remaining shares are held by various public and institutional investors, with about 14.7% publicly traded on the New York Stock Exchange (NYSE).
Recent Merger Agreement
On May 17, 2024, Avangrid entered into an Agreement and Plan of Merger with Iberdrola and Arizona Merger Sub, Inc. This merger will result in Avangrid becoming a wholly-owned subsidiary of Iberdrola.
Shareholder Breakdown
| Shareholder | Ownership Percentage |
|---|---|
| Iberdrola, S.A. | 81.6% |
| Public and Institutional Investors | 14.7% |
| Other Shareholders | 3.7% |
Stock Performance
As of September 30, 2024, Avangrid's stock had a total of 386,911,024 shares outstanding. The stock has shown fluctuations in its market performance, with recent valuations reflecting the ongoing strategic developments within the company.
Dividend Information
Avangrid declared a quarterly dividend of $0.44 per share on September 26, 2024, payable on January 2, 2025.
Financial Highlights
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Adjusted Net Income (Millions) | $211 | $105 | $106 |
| Net Income (Millions) | $205 | $59 | $146 |
| Earnings Per Share (EPS) | $0.53 | $0.15 | $0.38 |
| Total Revenue (Millions) | $2,083 | $1,974 | $109 |
Recent Developments
Avangrid has been actively involved in various projects aimed at enhancing its renewable energy portfolio. The company has reported capital expenditures of $2,854 million for the nine months ended September 30, 2024.
Market Capitalization
The market capitalization of Avangrid is influenced by its stock price fluctuations and the overall energy market trends. As of September 30, 2024, the stock price and market dynamics are being closely monitored in light of the merger agreement with Iberdrola and ongoing operational adjustments.
Avangrid, Inc. (AGR) Mission Statement
Mission Statement Overview
Avangrid, Inc. is committed to transforming the energy landscape by delivering sustainable energy solutions. The company's mission focuses on reliability, sustainability, and innovation in providing energy and utility services to its customers.
Core Values
- Customer Commitment: Avangrid prioritizes customer satisfaction and aims to provide reliable services.
- Sustainability: The company is dedicated to promoting renewable energy sources and reducing environmental impact.
- Technological Innovation: Avangrid invests in advanced technologies to enhance service delivery and operational efficiency.
- Community Engagement: The company actively engages with the communities it serves, fostering positive relationships and supporting local initiatives.
Financial Performance and Metrics
As of September 30, 2024, Avangrid reported significant financial metrics that reflect its operational success:
| Metric | Value (Millions) |
|---|---|
| Operating Revenues | $6,423 |
| Operating Income | $862 |
| Net Income Attributable to Avangrid | $725 |
| Adjusted Net Income | $741 |
| Earnings Per Share (Basic) | $1.87 |
| Total Assets | $46,733 |
| Total Stockholders' Equity | $20,690 |
Recent Strategic Initiatives
Avangrid has undertaken several strategic initiatives aligned with its mission statement aimed at enhancing its renewable energy portfolio:
- Investment in the New England Clean Energy Connect project, with an estimated cost of $1.5 billion.
- Selection for a $425 million capacity contract for the Aroostook Renewable Project by the U.S. Department of Energy.
- Advancements in the New England Wind 1 offshore wind development project with a capacity of 791 MW.
Regulatory and Environmental Commitment
Avangrid operates under strict regulatory frameworks, ensuring compliance with environmental standards. The company is actively involved in legislative processes to promote sustainable energy policies.
Conclusion
Avangrid, Inc. continues to position itself as a leader in the energy sector with a clear mission to provide sustainable and reliable energy solutions while enhancing its financial performance.
How Avangrid, Inc. (AGR) Works
Overview of Avangrid, Inc.
Avangrid, Inc. (NYSE: AGR) operates as a diversified energy company involved in the generation and distribution of electricity and natural gas. The company is a subsidiary of Iberdrola, S.A., and serves approximately 3.2 million customers across the United States. Avangrid is primarily engaged in two segments: Networks and Renewables.
Financial Performance
As of the third quarter of 2024, Avangrid reported significant increases in its financial metrics compared to the same period in 2023. Key financial data includes:
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Operating Revenues | $2,083 million | $1,974 million | $6,423 million | $6,027 million |
| Net Income Attributable to Avangrid | $205 million | $59 million | $725 million | $389 million |
| Adjusted Net Income | $211 million | $105 million | $741 million | $434 million |
| Earnings Per Share (Basic) | $0.53 | $0.15 | $1.87 | $1.00 |
Segment Analysis
Avangrid's operations are divided into two primary segments: Networks and Renewables. Each segment has shown distinct performance metrics.
Networks Segment
The Networks segment primarily involves the distribution of electricity and gas. As of September 30, 2024, the Networks segment generated:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $1,671 million | $1,587 million | $5,276 million | $4,935 million |
| Operating Income | $254 million | $134 million | $764 million | $531 million |
Renewables Segment
The Renewables segment focuses on the generation of electricity from renewable sources. Performance metrics are as follows:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $413 million | $387 million | $1,147 million | $1,092 million |
| Operating Income | $121 million | ($45 million) | $258 million | $170 million |
Capital Expenditures
Avangrid has made significant capital investments to enhance its infrastructure. For the nine months ended September 30, 2024, capital expenditures totaled:
| Year | Capital Expenditures |
|---|---|
| 2024 | $2,854 million |
| 2023 | $2,078 million |
Debt and Liquidity Position
As of September 30, 2024, Avangrid's debt profile includes:
| Debt Type | Amount (in millions) |
|---|---|
| Commercial Paper | $1,928 |
| Non-current Debt | $8,839 |
| Total Liabilities | $26,043 |
Dividends
On September 26, 2024, Avangrid declared a quarterly dividend of:
| Dividend Per Share | Amount |
|---|---|
| Quarterly Dividend | $0.44 |
Regulatory Environment
Avangrid operates under strict regulatory oversight, impacting its operations and investment strategies. Key regulatory updates include:
- New York rate increases effective October 12, 2023, contributing to revenue growth.
- Compliance with environmental regulations affecting renewable energy projects.
- Ongoing participation in legislative discussions impacting the energy sector.
How Avangrid, Inc. (AGR) Makes Money
Revenue Streams
Avangrid, Inc. generates revenue through two primary segments: Networks and Renewables. The breakdown of operating revenues for the nine months ended September 30, 2024, is as follows:
| Segment | Operating Revenue (Millions) |
|---|---|
| Networks | $5,279 |
| Renewables | $1,147 |
| Total | $6,423 |
Networks Segment
The Networks segment includes regulated operations in electricity and natural gas. For the three months ended September 30, 2024, operating revenues increased to $1,671 million from $1,587 million in the same period of 2023, primarily due to:
- Rate Increases: $138 million increase in electricity and gas revenues due to rate increases effective October 12, 2023.
- Deferrals Impact: A $32 million unfavorable impact from deferrals related to regulatory mechanisms.
For the nine months ended September 30, 2024, the Networks segment's operating income was $862 million, compared to $480 million in the same period of 2023.
Renewables Segment
The Renewables segment includes nonregulated operations such as wind, solar, and thermal energy. For the three months ended September 30, 2024, operating revenues increased to $413 million from $387 million in the same period of 2023. The increase was attributed to:
- Merchant Prices: An increase of $26 million in merchant prices.
- Favorable Market Changes: $21 million favorable changes on energy derivative transactions.
- Production Decrease: A $21 million decrease in production in the current period.
For the nine months ended September 30, 2024, operating income from the Renewables segment was $121 million compared to a loss of $46 million in the same period of 2023.
Operating Expenses
Total operating expenses for the nine months ended September 30, 2024, were $5,561 million, compared to $5,547 million in the same period of 2023. The breakdown is as follows:
| Expense Type | Amount (Millions) |
|---|---|
| Purchased Power, Natural Gas, and Fuel Used | $1,610 |
| Operations and Maintenance | $2,477 |
| Depreciation and Amortization | $935 |
| Taxes Other Than Income Taxes | $539 |
Net Income and Adjusted Net Income
Net income attributable to Avangrid, Inc. for the nine months ended September 30, 2024, was $725 million, compared to $389 million in the same period of 2023. Adjusted net income for the same period was $741 million, up from $434 million year-over-year.
Capital Expenditures
Avangrid’s capital expenditures for the nine months ended September 30, 2024, totaled $2,854 million, reflecting investments primarily in the Networks and Renewables segments.
Financial Summary
For the three months ended September 30, 2024, Avangrid reported:
| Financial Metric | Amount (Millions) |
|---|---|
| Net Income | $205 |
| Operating Income | $254 |
| Adjusted EBITDA | $585 |
| EPS (Basic) | $0.53 |
Conclusion on Business Model
Avangrid's business model focuses on regulated utility operations and renewable energy generation, leveraging rate increases, market conditions, and operational efficiency to drive revenue growth and profitability.
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Article updated on 8 Nov 2024
Resources:
- Avangrid, Inc. (AGR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Avangrid, Inc. (AGR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Avangrid, Inc. (AGR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.