Eversource Energy Nears Sale Of Offshore Wind Stakes Amid Significant Impairment Charge: Details
Portfolio Pulse from Shivani Kumaresan
Eversource Energy (NYSE:ES) is in advanced talks to sell its 50% stake in three offshore wind projects to a global private infrastructure investor. The company will record an impairment charge of $1.4-$1.6 billion in Q4 due to revised construction costs, which will not affect future cash flows or current cash balances. Eversource will provide 2024 earnings guidance and other financial forecasts in an upcoming earnings call.
January 09, 2024 | 11:44 am
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Eversource Energy is negotiating the sale of its offshore wind stakes and expects a Q4 impairment charge of $1.4-$1.6 billion, which will not affect its cash flows or balances.
The significant impairment charge indicates a substantial write-down in asset value, which typically leads to negative investor sentiment in the short term. However, the company's statement that this will not impact future cash flows or current cash balances may mitigate some negative reactions. The upcoming earnings call may provide further clarity and potentially influence the stock's direction.
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