Canadian Utilities (CU) Q3 2024 earnings summary

Executive summary

• Adjusted earnings for Q3 2024 were $102 million ($0.38/share), up $15 million or 17% year-over-year, driven by growth in ATCO Energy Systems, EnPower, and Australia.

• IFRS earnings attributable to equity owners were $12 million, down $113 million year-over-year, reflecting non-recurring items including a $14 million loss on the sale of ATCOenergy.

• Strong cash flows from operating activities reached $419 million, up $9 million year-over-year, supporting capital programs and commitments.

• Sale of ATCO Energy/ATCOenergy to parent company for $85 million, removing it from reporting segments as of August 1, 2024.

• Major capital investments advanced regulated utilities and hydrogen projects, with regulatory approvals and new partnerships supporting long-term growth.

Financial highlights

• Q3 2024 adjusted earnings: $102 million ($0.38/share), up from $87 million ($0.32/share) in Q3 2023.

• Q3 2024 IFRS earnings: $12 million ($-0.03/share), down from $125 million ($0.39/share) in Q3 2023.

• Q3 2024 capital investment: $420 million, up $89 million year-over-year; 94% focused on regulated utilities.

• Cash flow from operations: $419 million in Q3 2024, up from $410 million in Q3 2023.

• Dividends per share for Q3 2024: $0.4531; annualized $1.81.

Outlook and guidance

• No additional equity financing anticipated in the near term; development pipeline expected to be self-funded.

• Construction of Yellowhead Mainline project expected to begin in 2026, with in-service targeted for Q4 2027, pending regulatory approval.

• Heartland Hydrogen Hub FEED to commence by end of 2024, with ongoing collaboration with governments and First Nations.

• ATCO Australia received regulatory approval for a five-year plan, including a higher ROE of 8.23% for 2025–2029.

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