| The firms maintain that the Company’s balance sheet and access to capital markets are strong. The liquidity remains among the strongest in the sector with available cash and credit facilities totaling $3.5 billion. The annual dividend of $1.89 per share yields approximately 3.6%. Most of the firms expect FPL to maintain a dividend growth rate of 5%-6% over the next 2-3 years. This is a financially strong company, and future cash flow levels should easily cover the annual dividend increases through 2012.
Capital Expenditure Budget
On January 13, 2010, FPL announced that it will immediately suspend activities on projects representing approximately $10 billion of investment over the next five years in Florida’s energy infrastructure. According to FPL, the projects would have created an estimated 20,000 direct and indirect jobs over the next five years. FPL said it will immediately suspend activities on:
• Development of two new nuclear reactors at Turkey Point beyond what is required to receive a license from the Nuclear Regulatory Commission;
• Modernization of the Riviera Beach and Cape Canaveral plants;
• The proposed Florida EnergySecure natural gas pipeline; and,
• Numerous discretionary infrastructure projects targeting improvements in efficiency and reliability within FPL’s power generation, transmission and distribution units.
FPL will also assess the cost structure of its ongoing operations and review other capital investments for appropriate reductions. The Company expects to make further decisions on all of these matters no later than the end of 2Q10.
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