Eversource Energy (NYSE: ES) announced the completion of its sale of a 50% stake in the South Fork Wind (132 MW) and Revolution Wind (704 MW) projects to Global Infrastructure Partners (GIP), with adjusted gross proceeds of $745 million. The sale price was reduced by approximately $375 million from the initially expected $1.12 billion due to lower capital spending and a delay in Revolution Wind’s commercial operations date.
Eversource CEO Joe Nolan emphasized the significance of the transaction, marking the company’s transition to a pure-play regulated utility focused on delivering superior service while continuing to support renewable energy development through its transmission expertise. “We are proud of the role we’ve played in advancing offshore wind projects and remain committed to enabling the clean energy transition,” Nolan said.
With this sale and the previous divestment of its interest in the Sunrise Wind project to Ørsted, Eversource expects to record an aggregate net loss of approximately $520 million in the third quarter of 2024. This figure includes a $370 million gain from the Sunrise Wind sale, as well as increased construction costs and other charges related to Revolution Wind. Eversource expects to recognize a $360 million liability in Q3 2024, with the majority to be settled by 2026.
John Moreira, Eversource’s Executive Vice President and CFO, highlighted the transaction’s role in strengthening the company’s balance sheet and improving credit metrics. Eversource’s equity issuance plan of up to $1.3 billion over the next several years remains unchanged. The company will continue to collaborate with Ørsted and GIP on onshore construction efforts for the projects to bring clean energy to New England.
