Algonquin Power & Utilities Corp (AQN) Q3 2024 Earnings Call Highlights: Navigating Growth ...

GuruFocus.com2024-11-08

Revenue Growth (Continuing Operations): 1% year-over-year increase. Adjusted EBITDA Growth (Continuing Operations): 4% year-over-year increase. Adjusted Net Earnings (Continuing Operations): 5% year-...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlgonquin Power & Utilities Corp (AQN) Q3 2024 Earnings Call Highlights: Navigating Growth ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-08 15:19 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/algonquin-power-utilities-corp-aqn-071934246.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue Growth (Continuing Operations): 1% year-over-year increase.\nAdjusted EBITDA Growth (Continuing Operations): 4% year-over-year increase.\nAdjusted Net Earnings (Continuing Operations): 5% year-...</p>\n\n<a href=\"https://finance.yahoo.com/news/algonquin-power-utilities-corp-aqn-071934246.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"AQNB","symbol_name":"Algonquin Power & Utilities Corp.","start_time":0,"source_url":"https://finance.yahoo.com/news/algonquin-power-utilities-corp-aqn-071934246.html","article_id":"2481145976","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/hTFmZHPyaY86_OiUitC_Nw--~B/aD00MDA7dz00MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/7d3112aff0e3379395454ab9d98d040b"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481145976","pubTimestamp":1731050374,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Adjusted Net Earnings Per Share : 20% year-over-year decrease.Net Proceeds from Renewables Sale: Expected $1.7 billion to $1.8 billion after obligations.Rate Base Increase Request : $534 million with a $92.1 million revenue requirement increase.Rate Base Increase Request : $154 million with a $39.8 million revenue requirement increase.GuruFocus has detected 9 Warning Signs with AQN.For the complete transcript of the earnings call, please refer to the full earnings call transcript.Algonquin Power & Utilities Corp  is progressing towards becoming a pure-play regulated utility, simplifying its business structure.The issuance of 76.9 million common shares has diluted earnings per share, impacting shareholder value.Q: Can you provide more details on the rate case submissions, specifically the $700 million target recovery and the remaining $300 million?A: We are not providing a detailed breakdown of the remaining $300 million. We will continue to file rate cases, with Litchfield being the ne","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"AQNB":"Algonquin Power & Utilities Corp.","AQN":"Algonquin Power & Utilities Corp"},"translate_title":"阿尔冈昆电力与公用事业公司(AQN)2024年第三季度收益看涨期权亮点：引领增长……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AQN":1,"AQNB":1},"content_text":"Revenue Growth (Continuing Operations): 1% year-over-year increase.\nAdjusted EBITDA Growth (Continuing Operations): 4% year-over-year increase.\nAdjusted Net Earnings (Continuing Operations): 5% year-over-year decrease.\nAdjusted Net Earnings Per Share (Continuing Operations): 20% year-over-year decrease.\nDebt (Including Continued and Discontinued Operations): $8.7 billion as of Q3.\nNet Proceeds from Renewables Sale: Expected $1.7 billion to $1.8 billion after obligations.\nRate Base Increase Request (Empire Electric Missouri): $534 million with a $92.1 million revenue requirement increase.\nRate Base Increase Request (CalPeco California): $154 million with a $39.8 million revenue requirement increase.\nYear-to-Date Adjusted Net Earnings (Continuing Operations): $187 million.\nYear-to-Date Adjusted Earnings Per Share (Continuing Operations): $0.25.\n\n\nWarning! GuruFocus has detected 9 Warning Signs with AQN.\n\nRelease Date: November 07, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nAlgonquin Power & Utilities Corp (NYSE:AQN) is progressing towards becoming a pure-play regulated utility, simplifying its business structure.\nThe 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.\nAQN has successfully implemented a new SAP-based IT platform to enhance customer service and back-office processes.\nThe 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.\nAQN's third-quarter financial performance showed year-over-year growth in revenue and adjusted EBITDA, driven by new rates across its regulated businesses.\n\n Negative Points \n\nThe transition to a pure-play regulated utility has introduced short-term regulatory lag, impacting the timing of rate cases and financial results.\nHigher operating expenses, depreciation, and interest expenses have offset revenue growth, leading to a decrease in adjusted net earnings and earnings per share.\nThe issuance of 76.9 million common shares has diluted earnings per share, impacting shareholder value.\nThe company faces challenges in recovering and earning a return on capital already invested but not yet captured in authorized rates.\nThere is uncertainty regarding the sale of the hydro fleet, which contributes significantly to the business, and the decision will depend on creating shareholder value.\n\n Q & A Highlights \nQ: Can you provide more details on the rate case submissions, specifically the $700 million target recovery and the remaining $300 million? A: We are not providing a detailed breakdown of the remaining $300 million. We will continue to file rate cases, with Litchfield being the next focus. The target is a moving number as we continue to invest, and we expect this process to extend into 2027. - Darren Myers, CFO\nQ: What impact could the Empire rate case have on 2025, and how much of it could be retroactive? A: Historically, Empire's rate cases take about 12 months to resolve. The impact on 2025 will be minimal, with the full benefit expected in 2026. - Darren Myers, CFO\nQ: Can you update us on the deferrals of depreciation and the regulatory allowances? A: We have submitted applications in New Hampshire and Arizona but have not yet received responses. - Christopher Huskilson, CEO\nQ: Regarding the hydro assets, is the sale process underway, and what are the expressions of interest? A: We have received significant interest but have not started the sale process. We plan to market the hydro assets in the first half of next year, but a sale will only occur if it creates economic value. - Christopher Huskilson, CEO\nQ: If you sell the hydro assets, how might you use the proceeds? Could it lead to share buybacks or accelerated utility investments? A: Our priority is maintaining an investment-grade rating and self-funding. We aim to use proceeds to maintain flexibility and invest in the business, depending on regulatory lag and capital spend timing. - Darren Myers, CFO\nQ: Could the purchase price for the power business change again, and how does this affect the overall economics? A: The purchase price range increased due to bringing $200 million on balance sheet, with no economic effect. The range accounts for project completion costs, and we are comfortable with it. Timing of tax attributes also affects proceeds. - Darren Myers, CFO\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.30.2","shortVersion":"4.30.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481145976"}