July 24, 2018

Avangrid 2Q profits fall 12%

PHOTO | Contributed
PHOTO | Contributed
Avangrid CEO Jason P. Torgerson.

Orange-based electric-gas utility parent Avangrid on Tuesday said its second-quarter profits fell by about 12 percent due in large part to storm-related interruptions at its two wind farms.

Avangrid, which owns United Illuminating and two natural gas utilities serving Connecticut, said its net income declined to $107 million, or 35 cents a diluted share, compared to $120 million, or 39 cents a diluted share, recorded in the year-ago period.

Avangrid said it also experienced certain losses due to the sale of its natural-gas storage unit.

In May, Avangrid Renewables Holdings sold its Texas-based Enstor Gas LLC unit, which owns and operates natural gas storage facilities in the Gulf Coast and Southwest regions of the country, to an affiliate of Boston private equity firm ArcLight Capital Partners LLC.

Despite the "minor" setback, Avangrid reaffirmed its 2018 earnings outlook to a range of $2.16 to $2.46 a diluted share.

"For the first half of the year, we experienced some setbacks in earnings due to a number of minor non-deferrable storms and storm-related costs in Networks, lower than our normal wind generation, and transmission-related interruptions at two of our wind farms," Avangrid CEO Jason P. Torgerson said, adding the utility will focus on executing capital investments during the year's final two quarters.

Avangrid also announced this month that it has expanded its natural gas service to the Tolland County town of Bolton, where prior to the start of the 7.4-mile main construction, its subsidiary Connecticut Natural Gas previously had no customers. The project began in 2016 and wrapped in June, making gas an option for 50 businesses and as many as 175 homes along the route, Avangrid said.

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