Avangrid, Inc. (AGR) Earnings Call Transcript & Summary

Thank you. I declare the polls closed and ask the secretary to lay the ballot.

Chairman, you may proceed.

So I'm advised that the ballot has been counted. Can the secretary please report the preliminary results of the voting?

On behalf of the Inspector of Election, I wish to report the following. As to the first proposal, in excess of the majority of the votes of the shares of voting stock present in person or represented by proxy and entitled to vote at this meeting were cast in favor of the election of each of the 14 nominees the Board of Directors, and each such nominee is hereby duly elected. As to proposals 2 and 3 in excess of the majority of the votes of shares of voting stock present in person or represented by proxy and entitled to vote at this meeting were cast in favor of each such proposal and each such proposal is hereby approved. As to Proposal 4, the option for holding an advisory vote every year received the greatest number of votes cast that will be considered the preferred frequency of the shareholders.

Since there is no further business, we will now adjourn the meeting. This concludes the formal part of 2022 annual meeting.

As we say any time we make forward-looking statements. These statements reflect management's intentions, plans, beliefs, expectations or forecasts for the future. The company's actual results may differ materially from these statements. The factors that may affect the risks and uncertainties regarding our expectations are included in our most recent annual report on Form 10-K filed with the Securities and Exchange Commission. These statements, of course, are only as of this date, and we do not undertake any obligation to revise or update them.

Thank you, Scott. Now our CEO, Pedro Azagra will make some remarks on the achievement of 2021 and the execution of our plan. Pedro?

Thank you, Chairman. Overall, 2021 was a successful year for Avangrid as we advance on our path to become the leading sustainable energy company in the U.S. We invested a record of $3.3 billion to expand our clean energy infrastructure and better serve our customers. We reached several critical milestones, including expanding our network rate base by 9% to nearly $12 billion meeting and exceeding all our service quality metrics in main resulting in the normalization of Central Maine Power allowed ROE. Beginning construction on our landmark Vineyard Wind 1 project, which will become the first large-scale offshore wind project to deliver clean energy to U.S. families and businesses. In securing our largest offshore wind award to date for our 1.2-gigawatt Commonwealth wind project. Commonwealth will be developed jointly with our 804-megawatt Park City project for a total combined of 2 gigawatts, making this the largest contract in offshore development in New England. These operational achievements translated into a strong financial performance enabling us to raise our guidance and to end the year above consensus expectations. Our consolidated net income increased 22% year-over-year to $707 million and our adjusted net income increased by 25% year-over-year to $780 million. Both our networks and renewable businesses saw double-digit growth year-over-year in net income and adjusted net income. We also provided our shareholders with a dividend of $1.76 per share. Heading into 2022 and beyond, networks continue to be the foundation of our company, representing roughly 80% of our earnings. This year, we expect to invest approximately $1.9 billion in this business as we continue to prioritize operational excellence. Furthermore, we will advance on our rate cases, which propose record investments to update critical infrastructure, enhance reliability and resiliency and deliver on our state clean energy commitments while contributing to economic development and job creation. In addition, offshore wind is a major growth vector for Avangrid over this decade, Avangrid will build 3 projects in New England, Vineyard Wind 1, Park City Wind and Commonwealth wind with a total combined capacity of 2.8 gigawatts. With the South, our Kitty Hawk project has the potential to supply 2.5 gigawatts to Virginia and North Carolina. The development of our portfolio alone will significantly contribute to the U.S. government's goal to deploy 30 gigawatts of offshore wind by 2030. As we work to deliver these transformational investments, Avangrid will benefit from a growth of global expertise and proven track record of success, complementing our unique business mix. With last year achievements in hand and a clear vision for the future, our team remains focused on maintaining our strong momentum on driving execution, becoming the leading sustainable energy company in the U.S. and delivering strong and consistent results that generate sustainable value for you, our shareholders.

Thank you, Pedro. You have seen 2021 was a year of good progress for Avangrid. We demonstrate that by focusing on the execution of our strategic priorities, we can reach our operating and financial targets. We have strong believe that Avangrid is in the best position to take advantage of the opportunities ahead in the United States utility industry and to invest and create wealth and jobs in the country. I want to thank Betsy King, who is leaving the Board this year for her contribution to the Board and the Audit Committee over the last 3 years. Betsy has appreciated our dedication and guidance insurer, will continue in the same line in the Port of Hungry renewables. I will also welcome the new Board members, Camille Varlack and Fatima Banez I ensure you will add new perspective, experience and expertise to this Board. To conclude, we will now project a short documentary field that summarize the milestone of Avangrid over the last year and the company's contribution to our communities. Thank you, all of you for your presence today here. Thank you.