Q3 2024 Algonquin Power & Utilities Corp Earnings Call Transcript
Key Points
- Algonquin Power & Utilities Corp (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.
- 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.
Hello, and welcome to the Algonquin Power & Utilities Corp. third quarter 2024 earnings conference call. (Operator Instructions)
I will now turn the conference over to Mr. Brian Chin, Vice President of Investor Relations. Please go ahead.
Thank you, operator, and good morning, everyone. Thank you for joining us for our third quarter 2024 earnings conference call. Joining me on the call today will be Chris Huskilson, Chief Executive Officer; Darren Myers, Chief Financial Officer; and Sarah MacDonald, Chief Transformation Officer. To accompany today's earnings call, we have a supplemental webcast presentation available on our website, algonquinpower.com. Our financial statements and management discussion and analysis are also available on the website as well as on SEDAR+ and EDGAR.
We would like to remind you that our discussion during the call will include certain forward-looking information and non-GAAP measures. Actual results could differ materially
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