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Up to $1.6 billion in impairment charges are expected to be recorded by Eversource Energy in Q4

In trading following the bell, the company's shares dropped by about 3%.
Reuters
 

Utility company Eversource Energy announced on Monday that it will record an after-tax impairment charge, other than temporary, for some wind projects in the fourth quarter, estimated to be between $1.4 billion and $1.6 billion.



Following the bell, trading in the company's shares saw an almost 3% decline.

Due to increased construction costs and challenges linked to schedule, Eversource said that it will be charged between $800 million and $900 million for all three of its wind projects: South Fork Wind, Revolution Wind, and Sunrise Wind.


"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 Joe Nolan, the company's CEO.

Operating the largest energy distribution system in New England is Eversource Energy. About 4.4 million people in Connecticut, Massachusetts, and New Hampshire are served by it for water, natural gas, and electric.


In each of the three wind projects it co-owns with Danish energy company Orsted, the company plans to sell its 50% ownership position.



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