Canadian Utilities (CU) Q2 2024 earnings summary

Executive summary

• Adjusted earnings for Q2 2024 were $117 million ($0.43/share), up 17% year-over-year, driven by regulated rate base growth, higher ROE, and improved natural gas storage spreads.

• IFRS earnings attributable to equity owners for Q2 2024 were $62 million ($0.16/share), down $43 million year-over-year due to non-recurring items and restructuring costs.

• Strong operational execution and momentum in strategic growth plans, with all business segments contributing to earnings growth.

• Significant capital investment plans and a robust renewables development pipeline are underway, including the $2 billion Yellowhead Mainline project and Atlas Carbon Storage Hub.

• Cash flows from operating activities increased to $471 million in Q2 2024, supporting operations, capital program, and financial commitments.

Financial highlights

• Q2 2024 revenues were $860 million, down $19 million year-over-year, mainly due to lower commodity prices and flow-through revenues.

• Adjusted earnings Q2 2024: $117 million ($0.43/share) vs. $100 million ($0.37/share) in Q2 2023.

• Earnings attributable to equity owners Q2 2024: $62 million vs. $105 million in Q2 2023.

• Cash flows from operations Q2 2024: $471 million (Q2 2023: $363 million).

• Capital investment Q2 2024: $322–$323 million; H1 2024: $641 million.

Outlook and guidance

• On track to deliver 2024 capital investment guidance of $1.2 billion, with $565 million invested year-to-date.

• Three-year capital investment plan for ATCO Energy Systems: $4.3–$4.7 billion, with a 3.5%–4.3% expected rate base CAGR.

• Renewables pipeline targets 1.3 GW installed capacity and $2.4–$2.6 billion in development capital by 2030.

• Heartland Hydrogen Project aims for commercial operations by early 2029, with cumulative spend of $4.5–$5.0 billion.

• Dividend growth targeted in line with sustainable earnings growth from regulated and long-term contracted investments.