Q4 2024 Fortis Inc Earnings Call Transcript
Key Points
- Fortis Inc (FTS) reported a strong financial year with a 6% growth in adjusted EPS and a record $5.2 billion in capital investments.
- The company increased its dividend for the 51st consecutive year, highlighting its commitment to returning value to shareholders.
- Fortis Inc (FTS) was ranked number one in corporate governance among 215 companies in the S&P TSX Composite Index by the Globe and Mail.
- The company achieved a 34% reduction in scope 1 emissions compared to 2019 levels, demonstrating progress in its climate impact reduction efforts.
- Fortis Inc (FTS) delivered a one-year total shareholder return of approximately 14%, outperforming benchmark indices over a 20-year period with an average annual return of 10%.
- The company faces potential regulatory challenges and uncertainties, particularly in Arizona, where new rate cases and formulaic rates are being explored.
- Higher operating and maintenance costs at Tucson Electric Power (TEP) impacted earnings, reflecting increased labor costs and planned generation maintenance.
- Unrealized losses on foreign exchange derivatives and total return swaps affected financial results, indicating exposure to currency fluctuations.
- The strengthening of the US dollar poses potential risks to Fortis Inc (FTS)'s capital plan, with a $0.05 change in the exchange rate impacting annual EPS by about $0.05.
- Fortis Inc (FTS) continues to engage with S&P regarding its A- issuer rating, which currently has a negative outlook due to concerns about physical and climate risks.
Thank you for standing by. This is Betsy, the conference operator. Welcome to the Fortis Inc. fourth quarter, an annual 2024 earnings conference call and webcast. As a reminder, all participants are in a listen-only mode, and the conference is being recorded. (Operator Instructions) .
I would now like to turn the conference over to Stephanie Amaimo, Vice President, Investor Relations. Please go ahead, Ms. Amaimo.
Thanks, Betsy, and good morning, everyone. Welcome to Fortis' fourth quarter and annual 2024 results conference call. I'm joined by David Hutchens, President and CEO; Jocelyn Perry, Executive VP and CFO; other members of the senior management team as well as CEOs from certain subsidiaries.
Before we begin today's call, I want to remind you that the discussion will include forward-looking information, which is subject to the cautionary statement contained in the supporting slide show. Actual results can differ materially from the forecast projections included in the
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