CANADIAN UTILITIES REPORTS FIRST QUARTER 2025 EARNINGS
First quarter 2025 earnings attributable to equity owners of the Company reported in accordance with International Financial Reporting Standards (IFRS earnings) were
RECENT DEVELOPMENTS
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Canadian Utilities invested$401 million of capital expenditures in the first quarter of 2025, of which 91 per cent was invested in our regulated utilities in ATCO Energy Systems andATCO Australia , with the remaining 9 per cent largely invested in ATCO EnPower. - ATCO Energy Systems continues to work on many utility infrastructure opportunities, including two previously announced projects: the
Yellowhead Pipeline Project (Yellowhead) inNatural Gas Transmission and theCentral East Transfer-Out Project (CETO) in Electricity Transmission.- Yellowhead is on-track for construction to commence in 2026, subject to
Alberta Utilities Commission and Company approvals. As part of the regulatory application process that establishes the need for the project, the oral argument and reply portion of the needs application took place inMarch 2025 . A decision is expected in the second or third quarter of 2025. As well, we continue to progress discussions on Indigenous ownership in the pipeline. - Electricity Transmission began construction of CETO in the third quarter of 2024, completed the winter season construction in the first quarter of 2025, and will begin fall season construction in the third quarter of 2025. CETO will support renewable energy integration in
Alberta and transport electricity in the counties ofRed Deer ,Lacombe andStettler , supplying more than 1,500 megawatts of electricity toAlberta's grid.
- Yellowhead is on-track for construction to commence in 2026, subject to
- ATCO EnPower continues to see favourable market conditions for natural gas storage operations which supports its long-term revenue growth strategy. The
$98 million of revenues in the first quarter 2025, an increase of$7 million compared to the same period in 2024, underlines the strength in our natural gas and natural gas liquids storage assets.
Corporate
- On
April 10, 2025 ,Canadian Utilities declared a second quarter dividend of45.77 cents per share or$1.83 per Class A and Class B share on an annualized basis.
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(1) Adjusted earnings is a total of segments measure. See Other Financial and Non-GAAP Measures Advisory included in this News Release. |
This news release should be read in concert with the full disclosure documents.
TELECONFERENCE AND WEBCAST
Opening remarks will be followed by a question and answer period with investment analysts. Participants are asked to please dial-in 10 minutes prior to the start and request to join the
Management invites interested parties to listen via live webcast at: https://www.canadianutilities.com/en-ca/investors/events-presentations.html.
A replay of the teleconference will be available approximately two hours after the conclusion of the call until
Investor & Analyst Inquiries:
Senior Vice President, Financial Operations
Colin.Jackson@atco.com
(403) 808 2636
Media Inquiries:
Director, Corporate Communications
Kurt.Kadatz@atco.com
(587) 228 4571
Subscription Inquiries:
To receive
Other Financial and Non-GAAP Measures Advisory
Adjusted Earnings
Consolidated adjusted earnings is a "total of segments measure", as defined in National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure ("NI 52-112"). The most directly comparable measure to adjusted earnings reported in accordance with IFRS is "earnings attributable to equity owners of the Company". IFRS earnings include timing adjustments related to rate-regulated activities, dividends on equity preferred shares, unrealized gains or losses on mark-to-market forward and swap commodity contracts, one-time gains and losses, impairments, and items that are not in the normal course of business or a result of day-to-day operations. These items are not included in adjusted earnings. A reconciliation of adjusted earnings to earnings attributable to equity owners of the Company is provided below.
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Three Months Ended |
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($ millions except share data) |
2025 |
2024 |
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Adjusted Earnings |
232 |
225 |
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Restructuring (1) |
(14) |
— |
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Transition of managed IT services (2) |
(7) |
— |
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Unrealized gains on mark-to-market forward and swap commodity contracts (3) |
2 |
11 |
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Rate-regulated activities (4) |
5 |
(7) |
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IT Common Matters decision (5) |
(1) |
(6) |
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Dividends on equity preferred shares of |
19 |
19 |
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Earnings attributable to equity owners of the Company |
236 |
242 |
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Weighted average shares outstanding (millions of shares) |
271.6 |
271.0 |
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(1) |
In the first quarter of 2025, the Company recorded restructuring costs of |
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(2) |
In the first quarter of 2025, the Company recognized IT transition costs of |
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(3) |
The Company's electricity generation business enters into, and, until the date of sale of |
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(4) |
The Company records significant timing adjustments as a result of the differences between rate-regulated accounting and IFRS with respect to additional revenues billed in the current year, revenues to be billed in future years, regulatory decisions received, and settlement of regulatory decisions and other items. |
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(5) |
Consistent with the treatment of the gain on sale in 2014 from the IT services business by the Company, financial impacts associated with the IT Common Matters decision are excluded from adjusted earnings. |
Forward-Looking Information Advisory
Certain statements contained in this news release constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", "goals", "targets", "strategy", "future", and similar expressions. In particular, forward-looking information in this news release includes, but is not limited to, references to: the anticipated timing for commencement of construction on the Yellowhead project and for a decision on the needs application for the project; the anticipated capacity and benefits of the CETO project and expectations regarding construction of the project; and the payment of dividends.
Although the Company believes that the expectations reflected in the forward-looking information are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct. Forward-looking information should not be unduly relied upon. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties, and other factors, which may cause actual results, levels of activity, and achievements to differ materially from those anticipated in such forward-looking information. The forward-looking information reflects the Company's beliefs and assumptions with respect to, among other things, the applicability and stability of legal and regulatory requirements in the jurisdictions in which we invest and/or operate; the payment of fees owing pursuant to applicable contracts; certain regulatory applications being made and approved in 2025; the development and performance of technology and technological innovations; continuing collaboration with certain business partners, and regulatory and environmental groups; the performance of assets and equipment; the ability to meet current project schedules, and other assumptions inherent in management's expectations in respect of the forward-looking information identified herein.
The Company's actual results could differ materially from those anticipated in this forward-looking information as a result of, among other things, risks inherent in the performance of assets; capital efficiencies and cost savings; applicable laws and regulations and the interpretation and manner of enforcement of such laws and regulations; changes to government policies; regulatory decisions; competitive factors in the industries in which the Company operates; evolving market or economic conditions; credit risk; interest rate fluctuations; the availability and cost of labour, materials, services, and infrastructure; future demand for resources; the development and execution of projects; prices of electricity, natural gas, natural gas liquids, and renewable energy; the development and performance of technology and new energy efficient products, services, and programs including but not limited to the use of zero-emission and renewable fuels, carbon capture, and storage, electrification of equipment powered by zero-emission energy sources and utilization and availability of carbon offsets; potential cancellation, termination, default, non-compliance, or breach of contract by contract counterparties; the risk that payments owed may not be collected or received in a timely manner, or at all; risks associated with potential litigation proceedings; potential damage to our brand and/or reputation that may result from a failure to perform, or from factors outside of our control, or negative publicity related to significant projects, investments, operations or activities; the risk of operational disruptions, outages, or force majeure events; the occurrence of unexpected events such as fires, extreme weather conditions, explosions, blow-outs, equipment failures, transportation incidents, and other accidents or similar events; global pandemics; the imposition of or changes to customs duties, tariffs or other trade restrictions; geopolitical tensions and wars; and other risk factors, many of which are beyond the control of the Company. Due to the interdependencies and correlation of these factors, the impact of any one material assumption or risk on a forward-looking statement cannot be determined with certainty. Readers are cautioned that the foregoing lists are not exhaustive. For additional information about the principal risks that the Company faces, see "
Any forward-looking information contained in this news release represents the Company's expectations as of the date hereof, and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.
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