Fortis Inc

Latest Results (17.12.2024):

Net Earnings

Fortis Inc. reported net earnings attributable to common equity shareholders of $420 million for the third quarter of 2024, or $0.85 per common share. This represents an increase of $26 million, or $0.04 per common share, compared to the third quarter of 2023. The growth was primarily driven by rate base growth across utilities and strong earnings in Arizona, particularly due to new customer rates at Tucson Electric Power effective September 1, 2023.

Year-to-Date Earnings

On a year-to-date basis, Fortis Inc.'s net earnings were $1.2 billion, or $2.45 per common share, marking an increase of $85 million, or $0.13 per common share, compared to the same period in 2023. The increase was attributed to rate base growth, higher earnings in Arizona, and unrealized gains on derivative contracts, among other factors.

Capital Expenditures

Fortis Inc. expects capital expenditures for 2024 to be approximately $5.2 billion, up from the previously anticipated $4.8 billion. This increase is driven by the timing of expenditures related to the Eagle Mountain Pipeline project at FortisBC Energy and a higher forecast U.S.-to-Canadian dollar exchange rate. The annual capital program is on track with $3.6 billion invested through September 2024.

Regulatory Updates

In October 2024, the Federal Energy Regulatory Commission issued an order revising the base return on equity for ITC's MISO utilities from 10.02% to 9.98%. This order also directed the payment of certain refunds, with interest, by December 1, 2025. The application of this order will result in a regulatory liability of approximately $35 million to be recognized by ITC in the fourth quarter of 2024.

Outlook

Fortis Inc. continues to enhance shareholder value through its $26 billion five-year capital plan, which is expected to increase the midyear rate base from $38.8 billion in 2024 to $53.0 billion by 2029. This translates into a five-year compound annual growth rate of 6.5%. The corporation remains committed to its long-term growth strategy, focusing on annual dividend growth of 4-6% through 2029.