Operator: Thank you. We have our final question from Angie Storozynski from Seaport Research Partners. Angie, your line is now open.
Angie Storozynski: Thank you. I just wanted to go back to the earnings — segmental earnings. I mean, what happened with Networks earnings in the fourth quarter? Because it seems like the year-over-year delta is pretty harsh, especially for the fourth quarter earnings. You clearly made your consolidated EPS against market expectations mostly through the Renewables business, but Networks looks weak, and you’re suggesting that there’s basically flat earnings year-over-year roughly for that business in 2023, if I understand correctly because of the timing of rate cases. But again, I would argue that the 2022 earnings for Networks were relatively weak, no?
Patricia Cosgel: So, yes, let me just go through a couple of things there, Angie. For the fourth quarter, specifically for Networks, we did have the ongoing impact of rate increases in New York and Maine; that was about $16 million, and we had a small amount of capitalized labor and some benefit from taxes. But we also had ongoing cost of the business, which is including all across the business, higher vegetation management spend, other costs of the business. We had personnel costs that were higher that was primarily due to growth including some that were in our prior JP in New York. We had depreciation as we had new fixed assets put in place. And then if you look quarter-over-quarter, there’s also a negative in finance cost that’s really from NECEC because we have that — there was about $6 million there that was in the fourth quarter of 2021, but not in the fourth quarter of 2022.
So, that’s really for the quarter, what’s been timing-wise, what’s been driving the business, the cost.
Pedro Azagra: I think also, if I can make a comment, and please Catherine or Scott to comment as needed. I think I’m very proud that we have delivered almost — when I say almost, it’s almost 100% the budget we have for the year. I think that’s — I’m very happy. So that’s why we want to do the same thing in 2023. And perhaps Scott or Catherine, if you want to add anything to Patricia.
Catherine Stempien: I’ll just add, Angie, that this is traditionally the profile that we have in networks where towards — as we get towards the fourth quarter, some of those expenditures that Patricia was talking about typically flow through. So, what we really target for is the total year EPS.
Angie Storozynski: Okay. Well, but you never provided us with those segmental earnings targets, right? I mean I understand that you’re showing us on a quarterly basis, but as I look into even 2023, you’re not showing me what is the target for Networks, right? Would you consider providing us with segmental guidance?
Pedro Azagra: I think we used to do that. And I think we have decided to move more to the commitment as a company in order to do that. And that’s why we will explain in the data every quarter, but we prefer to stay with our commitment to the whole company.
Angie Storozynski: Okay. And just one last one. So, you mentioned that you considered asset sales to offset equity needs. It seems like we have had — or we have a number of pending processes of asset sales on the Renewables side. They seem to be getting delayed. There are some questions about how the higher cost of financing impacts the value of these assets. Have you looked at, again, potential monetization of either existing assets or projects or undeveloped projects and how the market precede these assets versus what you had expected a couple of years ago?
Pedro Azagra: I think the answer is yes. We are working on different processes. We have interest from buyers. I think if you see the recent transactions, both in Europe and the US, the market continues to be there. And I think interest rates, as you correctly say, may go up now, but people expect the interest rates to go down a year from now or three quarters from now. So, I think that the amount of money coming into the funds have not changed. You have a lot of money going into the funds. So, from that point of view, I think you can see the transaction we have closed at the level — at the group level already, three or four in the last six months. And I think if you review the RWA transaction, I think you review some of the other transactions in offshore going on, it seems to me that the appetite is there.
So, there is no change in dynamics right now in the many market for Renewables. All those other processes, I cannot comment. I think I were very pleased on our assets. We believe they are Tier 1. They are very unique. It’s not — not everybody has the third largest onshore operations in the US in onshore. I think nobody has so much commitment as we do to real projects in offshore. So, from that point of view, when you look at those assets, I think the appetite is there and the interest is there. I have not seen any change at all.
Operator: Thank you. And thank you all for your questions. I will now pass it over to Pedro Azagra for closing remarks.
