Investors, indulge in Momentum Investing not only to diversify their portfolio but also to take advantage of the price action.
NextEra Energy, Inc., (NYSE: NEE)
NextEra Energy, Inc., is a prominent player in the energy sector, operating primarily through its subsidiaries: NextEra Energy Resources (NEER) and Florida Power & Light Company (FPL)
NextEra Energy (NEE) reported an impressive EPS growth from $1.81 in 2021 to $3.60 in 2023. This notable increase signifies a compound annual growth rate (CAGR) of approximately 50%, reflecting the company's robust performance and effective strategic initiatives during this period.
In the first quarter of 2024, NextEra Energy, Inc. released its financial results, displaying significant developments:
Florida Power & Light Company (FPL) introduced 1,640 megawatts of new solar capacity, while NextEra Energy Resources augmented its portfolio by approximately 2,765 megawatts of new renewables and storage. This marks NEER's second-best origination quarter and its finest for solar and storage origination.
FPL reported a first-quarter 2024 net income of $1.172 billion, or $0.57 per share, compared to $1.070 billion, or $0.53 per share, for the prior-year quarter. FPL's growth primarily stemmed from ongoing investment in the business, with capital expenditures of approximately $2.3 billion for the quarter. Regulatory capital employed saw an increase of about 11.5% over the same quarter last year. FPL also experienced its most substantial quarter of customer growth in over 15 years.
The United States continues to experience exponential growth in power demand, with a notable 81% year-over-year increase in the five-year load growth. FPL's recent addition of 1,640 megawatts (MW) of solar capacity solidifies its position as the largest utility-owned solar portfolio in the US, surpassing 6,400 MW in total. This expansion, along with anticipated fuel savings, is expected to lower customer bills significantly, with residential bills for 1,000 kilowatt-hours projected to be 37% below the national average. Furthermore, FPL's ambitious Ten-Year Site Plan, targeting 21 gigawatts (GW) of solar and over 4 GW of storage, underscores its commitment to Renewable energy growth.
NextEra Energy (NEE) has maintained its reputation as a consistent dividend performer, regularly increasing its dividend yield year after year. As a result, NEE remains an appealing choice for investors seeking both income and long-term stability.
Agnico Eagle Mines Limited (NYSE: AEM)
Agnico Eagle Mines Limited, a Canadian-based Gold Mining Company, operates mines in Canada, Australia, Finland, and Mexico, extracting precious metals.
From 2019 to 2023, the company has consistently grown its revenues and Net Profit after Tax (NPAT), reflecting a strong upward trajectory in financial performance. Cash generated from operations has also shown steady improvement over these years.
One of the key indicators of financial health, Earnings Per Share (EPS), has seen a significant increase, rising from 1.99 cents per share in 2019 to 3.95 cents per share in 2023. This growth underscores the company's ability to generate more earnings per outstanding share, which is typically favourable to investors.
Additionally, there has been a notable enhancement in net margins, which increased from 18.9% in 2019 to 29.2% in 2023. This improvement indicates that the company is effectively managing its costs relative to its revenue, leading to higher profitability.
Agnico is undertaking a significant Preliminary Economic Assessment to expand its operating base and production capabilities. The company aims to enhance its production capacity by integrating open pit operations, targeting an increase to 1 million tonnes per annum of production rates from the current approximate rate of 750,000 ounces per annum. This expansion is anticipated to significantly boost revenue generation and sales capability for Agnico. Additionally, projections indicate an 8% cost reduction with the introduction of underground mining alongside the current open pit operations, promising favorable financial outcomes.
Source : Company Reports
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