Algonquin Power & Utilities posts better-than-expected Q4 results
AQN
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OAKVILLE, ON – Algonquin Power & Utilities Corp. (NYSE: NYSE:AQN) reported an increase in adjusted earnings for the fourth quarter, surpassing analyst expectations. The company announced a Q4 adjusted EPS of $0.16, which was $0.02 higher than the analyst estimate of $0.14. However, revenue for the quarter decreased by 11% to $666.9 million, compared to $748 million in the same quarter last year, yet it still managed to exceed the consensus estimate of $661.73 million.
The company’s regulated services group experienced growth, with a 10.5% year-over-year increase in Divisional Operating Profit, primarily due to new rate implementations. This growth was attributed to the recovery of investments and the implementation of new rates at several of the company’s systems, including CalPeco, Empire, Granite State, Bermuda Electric, Park Water, and Pine Bluff Water Systems.
Despite the overall revenue decline, the renewables business added 453 MW of wind and solar generation capacity.
Chris Huskilson, Interim Chief Executive Officer of AQN, commented on the results, “Despite headwinds in 2023, we made progress. Our Regulated Services Group posted double-digit Divisional Operating Profit growth primarily from new rate implementations, reflecting recovery of and returns on investments we made in our systems.”
The company did not provide specific stock movement data following the earnings release, nor did it provide the drivers of any market reaction. However, the stronger-than-expected adjusted EPS and the growth in the regulated services group suggest a positive performance for the quarter.
Looking ahead, AQN did not issue adjusted net earnings per common share guidance for 2024 due to the uncertainty surrounding the planned sale of its renewable energy business. The company expects 2024 to be a transition year as it repositions towards a more efficient operating profile and a renewed strategy for the future.
