In This Article:
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Adjusted EBITDA (Q4 2024): $330 million, modestly higher than Q4 2023.
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Adjusted EBITDA (Year-end 2024): $1.333 billion, down $122 million year-over-year.
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Adjusted Funds from Operations (AFFO) (Q4 2024): $182 million, up $20 million from Q4 2023.
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Adjusted Funds from Operations (AFFO) (Year-end 2024): $817 million, a slight decrease of $2 million year-over-year.
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U.S. Portfolio Adjusted EBITDA (2024): Increased from $369 million in 2023 to $656 million in 2024.
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2025 Adjusted EBITDA Guidance: $1,340 million to $1,440 million.
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2025 AFFO Target: $850 million to $950 million.
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2025 Sustaining CapEx Projection: $195 million to $225 million.
Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Capital Power Corp (CPXWF) achieved record annual generation of 38 terawatt hours in 2024, demonstrating strong operational performance.
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The company completed the Genesee repowering project, transitioning to 100% natural gas, which increased capacity by 512 megawatts and reduced greenhouse gas emissions by 3.4 million tons annually.
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Capital Power Corp (CPXWF) strategically sold two renewable assets for $333 million in pretax cash proceeds, optimizing its portfolio and enhancing financial stability.
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The company's U.S. portfolio contributed significantly to financial performance, with adjusted EBITDA from U.S. assets increasing from $369 million in 2023 to $656 million in 2024.
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Capital Power Corp (CPXWF) maintained a stable financial outlook with a highly hedged portfolio and long-term contracts, providing resilience against market volatility.
Negative Points
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Lower generation and power prices in Alberta negatively impacted adjusted EBITDA, leading to a year-over-year decrease of $122 million.
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The company faces challenges in navigating complex regulatory environments and stakeholder collaborations for data center projects, particularly in the U.S.
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Capital Power Corp (CPXWF) experienced higher sustaining capital expenditures due to larger outage scopes and recent acquisitions.
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The Alberta market is currently experiencing oversupply, which has led to lower power prices and could impact future profitability.
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The company has not yet finalized any major data center projects, indicating potential delays or challenges in securing agreements.
Q & A Highlights
Q: Can you comment on the opportunities for data centers in the U.S. and how they compare to Alberta? A: Avik Dey, President and CEO, explained that while the U.S. offers opportunities, each project requires collaboration with multiple stakeholders, making the process more complex and time-consuming compared to Alberta. Alberta currently has a speed-to-market advantage due to existing generation capacity and transmission distribution overcapacity.