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• Adjusted Annual Earnings Per Share: $2.94, in line with 2023's $2.96.

• Quarterly Adjusted Earnings Per Share: Increased by 33% in Q4 2024.

• Adjusted Earnings Contributions from Regulated Utilities: Increased more than 24% quarter-over-quarter and 6% year-over-year.

• Fourth Quarter Adjusted Earnings: $246 million, up from $175 million in Q4 2023.

• Annual Adjusted Earnings: Increased 5% to $849 million from $809 million in 2023.

• Operating Cash Flow Before Changes in Working Capital: Increased 7% to $2 billion.

• Capital Investment in 2024: More than $3.2 billion, the largest annual capital investment ever.

• Rate Base Growth: Roughly 7% year-over-year.

• New Base Rates for Tampa Electric: $185 million for 2025 based on a 10.5% allowed ROE.

• Peoples Gas Capital Investment: Nearly $800 million expected over the next two years.

• Solar Capacity at Tampa Electric: More than 1,300 megawatts, 19% of generating capacity.

• Customer Growth at Peoples Gas: More than 4% in 2024.

• Nova Scotia Power Reliability: Best reliability year in 30 years, with power on more than 99.9% of the time in 2024.

• Foreign Exchange Impact: Strengthening US dollar contributed a $0.05 increase in adjusted EPS compared to 2023.

• Warning! GuruFocus has detected 10 Warning Signs with EMRAF.

Release Date: February 21, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Emera Inc (EMRAF) reported a strong fourth quarter with a 33% increase in quarterly adjusted earnings per share, driven by higher contributions from regulated utilities and lower corporate costs.

• The company achieved significant milestones in its strategic plan, including the sale of its equity interest in the Labrador Island Link and the announcement of the sale of New Mexico Gas, which is expected to close later this year.

• Emera Inc (EMRAF) successfully deployed more than $3.2 billion in capital investment in 2024, marking its largest annual capital investment ever, resulting in roughly 7% rate base growth year-over-year.

• Tampa Electric's solar capacity increased to more than 1,300 megawatts, contributing to 10% of its energy coming from solar in 2024, which has saved customers over USD320 million in avoided fuel costs.

• The company expects adjusted earnings per share growth over the three-year guidance period to be somewhat front-loaded, with expectations to exceed the 5% to 7% growth range in 2025 due to favorable tailwinds, including foreign exchange benefits.

Negative Points

• Earnings contributions were impacted by the sale of the equity interest in the Labrador Island Link, resulting in lost earnings.

• The implementation of new tax legislation led to nonrecurring tax recoveries, which, while positive, are not expected to contribute to ongoing operations.

• Operating cash flow was affected by strong cost deferrals at Tampa Electric and fuel deferrals at both Tampa Electric and Nova Scotia Power.

• The company faces challenges in balancing investments required for reliability, decarbonization, and keeping rates affordable for customers, often referred to as the 'energy trilemma'.

• Block Energy operations were discontinued, resulting in wind-up costs and a provision to affect the wind down of the business, which had been a drag on EPS over the last couple of years.