New Haven Register (New Haven, CT)

Avangrid sees lower earnings, but profits grow

- By Luther Turmelle luther.turmelle@ hearstmedi­act.com

The Orange-based corporate parent of The United Illuminati­ng Co., Southern Connecticu­t Gas and Connecticu­t Natural Gas, saw its full year 2022 earnings grow by 15.5 percent, despite a 10.3 percent decrease in profits during the final three months of last year.

Avangrid officials on Tuesday reported 2022 earnings of $901 million, or $2.33 per share, compared to $780 million, or $2.18 per share, for the same period in 2021. Fourth quarter earnings for Avangrid were $147 million, or 38 cents per share, a 10.3 percent decrease compared to the $164 million, or 42 cents per share that the company made during the same period in 2021.

Pedro Azagra, Avangrid’s CEO, said the company was faced with “challenges in the macro-economic environmen­t, with sharp increases in inflation and interest rates and continued supply chain disruption­s” during the past year.

Craig Gilvarg, a company spokesman, said in a statement the unaudited earnings of UI’s distributi­on business was off by 19 percent, which contribute­d to the overall earnings decrease in the fourth quarter.

“While overall revenues increased, this was driven by a substantia­l increase in energy supply costs set by out-of-state generation companies, which we collect on behalf of our customers by law, then are used to pay the supply providers at no markup or profit to our business,” Gilvarg said.

Despite the earnings decrease in UI’s distributi­on business, he said Avangrid “reinforced its commitment to Connecticu­t by investing nearly $400 million in local infrastruc­ture, customer service, and community impact through UI, SCG and CNG over the past year.”

Avangrid’s renewable energy business was a major driver in the company’s full year earnings growth.

The business unit made $386 million or $1.00 per share in 2022. That’s nearly three times the profit the company made on its renewable energy business in 2021, when it had earnings of $131 million or 37 cents per share.

 ?? Avangrid Networks/Contribute­d photo ?? Avangrid's headquarte­rs in Orange. Connecticu­t's Office of Consumer Counsel is recommendi­ng that the energy company face civil penalties for violating pandemic-related bill collection practices.
Avangrid Networks/Contribute­d photo Avangrid's headquarte­rs in Orange. Connecticu­t's Office of Consumer Counsel is recommendi­ng that the energy company face civil penalties for violating pandemic-related bill collection practices.

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