By Joshua Jamerson
NextEra Energy Inc. announced two transactions that would, when combined with a previously announced deal, give the company complete ownership of the electricity-transmission business Oncor Electric Delivery Co.
NextEra said Monday that it reached an agreement for an affiliate to merge with Texas Transmission Holdings Corp. for about $2.4 billion, a deal that would include Texas Transmission's 20% interest in Oncor. NextEra also will buy a 0.22% interest in Oncor, which is owned by Oncor Management Investment LLC, for about $27 million.
In July, NextEra outbid rivals for Energy Future Holdings Corp.'s stake in Oncor, the biggest power provider in Texas, in a deal valued then at $18.4 billion. NextEra in September increased the deal's cash component.
NextEra also said Monday that profit fell 14% in the third quarter amid higher expenses and as earnings growth in its Florida power business was offset by declines in its clean energy business.
Over all, for the September quarter, NextEra Energy reported a profit of $753 million, or $1.62 a share, down from $879 million, or $1.93 a share, a year earlier. Excluding items, such as merger-related expenses and market-to-market effects, per-share earnings were $1.74. Revenue decreased 3% to $4.81 billion.
Analysts polled by FactSet expected per-share profit of $1.67 and revenue of $4.84 billion.
The company's Florida Power & Light Co. reported that its earnings rose 5.3% to $515 million. At the company's NextEra Energy Resources business, earnings declined 18% to $307 million.
Overall expenses rose 1.5% to $3.53 billion.
Shares, which have risen 22% in the past 12 months, were inactive premarket.
Write to Joshua Jamerson at firstname.lastname@example.org
(END) Dow Jones Newswires
October 31, 2016 09:21 ET (13:21 GMT)
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