In This Article:
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Adjusted Earnings: $102 million in Q3 2024, up from $87 million in Q3 2023.
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Adjusted Earnings Per Share: $0.38.
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ATCO Energy Systems Adjusted Earnings: $94 million, a 9.3% increase from Q3 2023.
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ATCO EnPower Adjusted Earnings: $14 million, up $5 million from Q3 2023.
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Energy Storage Adjusted Earnings: $13 million, an increase of $6 million year-over-year.
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ATCO Australia Adjusted Earnings: $15 million, a decrease of $3 million from Q3 2023.
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Cash Flow from Operations: $490 million, up 9% from the prior year.
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Capital Investment: $366 million in Q3, with a year-to-date total of $931 million.
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Adjusted EBITDA for ATCO EnPower: $39 million, up 18% from $33 million in Q3 2023.
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Electricity Generation Adjusted Earnings: $1 million, down $1 million from Q3 2023.
Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Canadian Utilities Ltd (CDUAF) reported strong quarterly earnings with adjusted earnings of $102 million, up from $87 million in the same period last year.
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ATCO Energy Systems saw a 9.3% increase in adjusted earnings, reflecting rate base growth and a higher allowed ROE.
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ATCO EnPower's adjusted earnings increased by $5 million year-over-year, driven by strong demand for natural gas and liquid storage.
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The company successfully sold its 100% investment in ATCO Energy for $85 million, aligning with its strategic focus.
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Cash flow from operations increased by 9% to $490 million, supporting operations and capital programs without the need for additional equity financing.
Negative Points
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ATCO Australia's adjusted earnings decreased by $3 million due to inflation indexing impacts on the rate base.
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The allowable ROE for ATCO Energy Systems will decrease from 9.28% in 2024 to 8.97% in 2025, potentially impacting future earnings.
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Electricity generation earnings were lower due to reduced merchant pricing in Alberta, despite increased generation capacity.
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The pace of renewables construction is impacted by uncertainty in Alberta's restructured energy market.
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The company faces challenges in deploying capital for energy transition projects due to regulatory and policy uncertainties.
Q & A Highlights
Q: With the increasing global power demand, is Canadian Utilities considering revisiting natural gas-fired assets in Alberta or other regions? A: Robert Myles, Chief Operating Officer of ATCO EnPower, confirmed that they are indeed considering all forms of generation, including gas-fired generation, alongside their ongoing pursuits in solar, wind, and hydro.