Eversource Energy ES has provided updates regarding the divestiture of its 50% stake in three offshore wind projects: South Fork Wind, Revolution Wind and Sunrise Wind.
The company holds its share of these three projects in two separate joint venture partnerships with the Danish energy company Ørsted.
As of now, Eversoure is in advanced negotiations with a global private infrastructure investor to sell its ownership interest.
"We are pleased to advance the sale of our offshore wind interests and are appreciative of the support and collaboration we continue to receive from Ørsted on this very complex transaction," said Chairman, President, and CEO Joe Nolan.
The company has identified certain impacts that will require further adjustment to the carrying value of its offshore wind investments for the three projects.
The revised construction costs relating to the projects' installation have seemingly impacted the offshore wind ownership interest potential sales price.
Accordingly, each joint venture updated its project construction forecasts in the fourth quarter.
As a result of these developments, Eversource expects to record an after-tax other-than-temporary impairment charge in the range of $1.4 billion - $1.6 billion in Q4.
The impairment charge will not impact Eversource's future cash flows or its current cash balances.
The company will issue 2024 earnings guidance, long-term earnings growth rate, equity needs and five-year capital forecast in the earnings call in mid-February.
Price Action: ES shares closed higher by 1.29% at $62.87 on Monday.
Photo via Company
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
