Canadian Utilities (CU) Q3 2024 earnings summary

Executive summary

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

• IFRS earnings dropped to $12 million in Q3 2024 from $125 million in Q3 2023 due to non-recurring items.

• Strong cash flow from operations reached CAD 419 million, up 9% year-over-year, supporting capital programs and commitments.

• Sale of ATCO Energy Ltd. to parent company for $85 million resulted in a $14 million loss, excluded from adjusted earnings.

• Major capital investments advanced regulated utilities, hydrogen, and energy transition projects.

Financial highlights

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

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

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

• Capital investment rose to $420 million in Q3 2024 from $331 million in Q3 2023.

• Fourth quarter dividend declared at $0.4531/share ($1.81 annualized).

Outlook and guidance

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

• Construction of Yellowhead Mainline expected to begin in 2026, with operations in Q4 2027, pending regulatory approval.

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

• Positive outlook for Australian gas utility earnings following new AA6 arrangement and higher ROE.

• Decision on ATCO Australia's bid for the South Australia Hydrogen Jobs Plan project expected in Q4 2024.