Belco parent looks to future sale of renewable assets
Algonquin Power & Utilities Corp, the Canadian parent company of Belco, has reported third quarter adjusted net earnings of $79.3 million, an increase of eight per cent, year-over-year.
But the period ended with a net loss attributable to shareholders of $174.5 million (2022: loss of $195.2 million), bringing the nine months net loss to $157.6 million (2022: loss of $137.6 million).
The Oakville, Ontario company said: “In the third quarter of 2023, the Regulated Services Group recorded a year-over-year revenue increase of $12.1 million due to the implementation of new rates and recovery of investments at the company's CalPeco, Empire, Granite State and Bermuda Electric Systems (Belco) as well as the Park Water System.
“New rates were offset by unfavourable weather affecting wind production at Empire Electric's renewable assets.”
Algonquin’s adjusted earnings before interest, tax, depreciation and amortisation was $281.3 million, an increase of two per cent over the prior year quarter.
Third quarter revenue was $624.7 million, down six per cent from $664.4 million in the third quarter of 2022.
Chris Huskilson, interim chief executive officer of AQN, said: “We have launched the sale process for our portfolio of high-quality renewable assets and extensive development pipeline, and we remain focused on appropriate valuation.
"Having now served as interim CEO for three months and met with various stakeholders, I believe the company's two businesses have untapped potential and bright futures ahead.
“With regards to the quarter, we continued to see constructive growth from rate cases and new development projects year over year.
“However, we also saw those efforts partially offset by unfavourable weather and higher interest rates.
“On balance, our adjusted net earnings grew at a healthy pace for the quarter."