UPDATE 1-Eversource Energy to record up to $1.6 bln in impairment charges in Q4
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Jan 8 (Reuters) - Utility firm Eversource Energy said on Monday it would record an after-tax impairment charge, other than temporary, of $1.4 billion to $1.6 billion in the fourth quarter related to some wind projects.
Shares of the company fell nearly 3% in trading after the bell.
Eversource said it would incur a charge of about $800 million to $900 million on all three of its wind projects- South Fork Wind, Revolution Wind and Sunrise Wind- owing to additional expenditures for construction and scheduling-related pressures.
A further charge of about $600 million to $700 million is expected for Sunrise Wind on the submission of a new bid after the New York State Public Service Commission rejected the company's appeal in October to raise the contract price on the prior contract to cover inflation, it added.
"Offshore wind projects continue to experience major supply chain disruption and inflationary challenges in the early stage of this growing industry in the U.S., and this impairment is an unfortunate reflection of the current market conditions we are facing," said CEO Joe Nolan.
Eversource Energy operates New England's largest energy delivery system. It serves approximately 4.4 million electric, natural gas and water customers in Connecticut, Massachusetts and New Hampshire.
The firm intends to divest its 50% ownership stake in the three wind projects it operates jointly with Danish energy firm Ørsted. (Reporting by Kabir Dweit; Editing by Shailesh Kuber and Shweta Agarwal)
