Daily Brief Utilities: Nextera Energy, Shin Hsiung Gas and more

• NextEra Energy, Inc. recently reported its third quarter financial results for 2025, focusing on strong operational accomplishments and future prospects across its business segments.
• The company’s adjusted earnings per share increased by 9.7% year-over-year, with significant contributions from both Florida Power & Light Company (FPL) and NextEra Energy Resources.
• FPL reported a robust quarter, with its earnings per share growing $0.08 year-over-year, primarily due to an 8% increase in regulatory capital employed.

• Dominant Regional Utility with Favorable Regulatory Tailwinds: Shin Hsiung Gas operates as a regulated natural gas utility in Kaohsiung, Taiwan, benefiting from a stable, concession-based business model. The company is poised to capitalize on Taiwan’s national energy policy, which aims to increase the share of natural gas in power generation to 50% by 2025, driving secular demand growth.
• Diversifying Revenue Streams and Strong Growth Profile: While core gas sales provide a stable foundation, the company is expanding into solar electricity sales and equipment installation, demonstrating a forward-looking strategy. This is reflected in its strong growth metrics, with a 5-year net income CAGR of 7.37% and a remarkable 3-year dividend CAGR of 64.36%.
• Moderate Valuation with Key Risks: The company trades at a P/E ratio of 24.6x. While its growth is robust, it faces risks tied to commodity price volatility, regulatory oversight on pricing, and high dependency on imported Liquefied Natural Gas (LNG) for its supply. Taiwan’s energy security is a key national concern, which could impact long-term supply stability.

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