Eversource Energy Announces Q4 2023 Impairment; Expects To Record An After-Tax Other-Than-Temporary Impairment In The Range Of ~$1.4B-$1.6B
Portfolio Pulse from Benzinga Newsdesk
Eversource Energy (NYSE:ES) expects to record an after-tax impairment of $1.4B-$1.6B for Q4 2023 due to increased costs and uncertainties in its offshore wind investments. The company is in advanced negotiations to sell its 50% interest in three offshore wind projects to a global private infrastructure investor. The sale is subject to regulatory approvals and the execution of partnership agreements with Ørsted. Eversource will continue to make required cash contributions to the JV projects until the sale is completed. The impairment charge will not affect Eversource's future cash flows or current cash balances.
January 08, 2024 | 9:24 pm
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Eversource Energy anticipates a significant impairment charge due to challenges in its offshore wind investments, but the sale of its interests and the impairment charge will not impact its future cash flows or current cash balances.
The announcement of a large impairment charge is typically viewed negatively by investors as it reflects challenges in a company's investments and may lead to a decrease in net asset value. However, the company's reassurance that this will not affect future cash flows or cash balances may mitigate some negative sentiment. The short-term impact is likely negative due to the substantial size of the impairment.
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