In This Article:
-
Revenue Growth (Continuing Operations): 1% year-over-year increase.
-
Adjusted EBITDA Growth (Continuing Operations): 4% year-over-year increase.
-
Adjusted Net Earnings (Continuing Operations): 5% year-over-year decrease.
-
Adjusted Net Earnings Per Share (Continuing Operations): 20% year-over-year decrease.
-
Debt (Including Continued and Discontinued Operations): $8.7 billion as of Q3.
-
Net Proceeds from Renewables Sale: Expected $1.7 billion to $1.8 billion after obligations.
-
Rate Base Increase Request (Empire Electric Missouri): $534 million with a $92.1 million revenue requirement increase.
-
Rate Base Increase Request (CalPeco California): $154 million with a $39.8 million revenue requirement increase.
-
Year-to-Date Adjusted Net Earnings (Continuing Operations): $187 million.
-
Year-to-Date Adjusted Earnings Per Share (Continuing Operations): $0.25.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Algonquin Power & Utilities Corp (NYSE:AQN) is progressing towards becoming a pure-play regulated utility, simplifying its business structure.
-
The company has announced the sale of its renewables business for up to $2.5 billion, which is expected to close by early 2025, providing significant capital.
-
AQN has successfully implemented a new SAP-based IT platform to enhance customer service and back-office processes.
-
The company has filed several rate cases, including Empire Electric in Missouri and CalPeco in California, which could increase the rate base by over $700 million.
-
AQN's third-quarter financial performance showed year-over-year growth in revenue and adjusted EBITDA, driven by new rates across its regulated businesses.
Negative Points
-
The transition to a pure-play regulated utility has introduced short-term regulatory lag, impacting the timing of rate cases and financial results.
-
Higher operating expenses, depreciation, and interest expenses have offset revenue growth, leading to a decrease in adjusted net earnings and earnings per share.
-
The issuance of 76.9 million common shares has diluted earnings per share, impacting shareholder value.
-
The company faces challenges in recovering and earning a return on capital already invested but not yet captured in authorized rates.
-
There is uncertainty regarding the sale of the hydro fleet, which contributes significantly to the business, and the decision will depend on creating shareholder value.
Q & A Highlights
Q: Can you provide more details on the rate case submissions, specifically the $700 million target recovery and the remaining $300 million? A: We are not providing a detailed breakdown of the remaining $300 million. We will continue to file rate cases, with Litchfield being the next focus. The target is a moving number as we continue to invest, and we expect this process to extend into 2027. - Darren Myers, CFO