This news release constitutes a "designated news release" for
the purposes of the Company's prospectus supplement dated
May 15, 2020 to its short form base
shelf prospectus dated April 3,
2020.
OAKVILLE, ON, Dec. 14, 2020 /CNW/ - Today Algonquin Power &
Utilities Corp., ("AQN" or the "Company") (TSX: AQN) (NYSE:
AQN) the parent company of Liberty, will be hosting its 11th
annual Analyst and Investor Day in a virtual format. During
the event, members of AQN's executive team will provide an update
on its corporate strategy, including the Company's strategic
pillars of growth, operational excellence and sustainability, and
will provide an overview of its financial position.
"2020 been a year of significant achievement for us despite its
challenges, including those caused by COVID-19. We have
successfully completed the acquisitions of ESSAL and BELCO,
reaching a milestone of serving more than one million customer
connections while continuing to execute on the Company's largest
construction program in its history with approximately 1,600MW of
renewable energy projects," said Arun
Banskota, President and Chief Executive Officer of AQN. "We
are pleased to announce our capital plan of $9.4 billion for the period from 2021 through
2025. We believe our organization is well positioned to capitalize
on the global growth of infrastructure investments and renewable
energy. Our multiple levers of growth, focus on operational
excellence and long term commitment to sustainability will be the
key foundation in delivering long term value to our
shareholders."
Business Highlights:
- As a business providing mission-critical energy and water
services, operational excellence centered on customers remains a
key focus in driving organic investments. AQN's five-year
$9.4 billion capital plan includes an
expected $6.3 billion of expenditures
in the Regulated Services Group, including organic investments in
safety and reliability, investments focused on enhancing quality of
service for customers and "greening the fleet" initiatives.
- A wholly-owned subsidiary of AQN has entered into an agreement
to acquire a 51% interest in a portfolio of four wind facilities
from RWE Renewables, a subsidiary of the RWE Group. The wind
facilities are expected to have an aggregate capacity of 861 MW,
located in the coastal region of south Texas and will benefit from an attractive
coastal wind resource. Two wind facilities, representing 421 MW of
the total portfolio, have already achieved commercial operations,
with the two remaining wind facilities expected to achieve
commercial operations in late 2020 and early 2021, respectively.
The transaction is expected to close in early 2021 and is subject
to customary regulatory approvals.
- The Company has added an expected 385 MW of new development
projects to its five-year capital plan, including the Company's
largest solar project, Carvers Creek, a 150 MW solar facility in
Virginia with offtake agreements
with Amazon and Starbucks. The remaining 235 MW is comprised of two
Ohio solar projects for which the
Company has recently signed purchase and sale agreements. Closing
of these two acquisitions is expected to occur prior to the end of
the first quarter of 2021.
- A planned investment in a greenfield development pipeline with
approximately 3.4 GW of opportunities, is incremental to the
Company's five-year capital plan.
- Demonstrating its ongoing commitment to sustainability, AQN
recently released its 2020 Sustainability Report and its first
Climate Change Assessment Report aligned with the Task Force on
Climate-Related Financial Disclosure recommendations.
Financial Highlights and Outlook:
- AQN has a five-year capital plan with identified investment
opportunities totaling $9.4 billion
from 2021 through 2025. Approximately 70% of the capital plan is
expected to be invested by the Regulated Services Group, while
approximately 30% is expected to be invested by the Renewable
Energy Group.
- AQN expects Adjusted Net Earnings per share of $0.71 to $0.76 for
the 2021 fiscal year, and forecasts an Adjusted Net Earnings per
share compound annual growth rate in the range of 8% to 10% for the
five-year period from 2021 through 2025. Please see "Non-GAAP
Financial Measures and Use of Non-GAAP Financial Measures"
below.
- The Company reiterates its 10% annual dividend growth
expectation for 2021, with a targeted 80-90% payout ratio based on
Adjusted Net Earnings per share beyond 2021.
All dollar amounts referenced herein are in U.S. dollars unless
otherwise noted.
Presentation materials will be available on the website at
www.algonquinpower.com.
Conference call details are as follows:
Date:
|
Monday, December 14,
2020
|
Time:
|
9:00 a.m. EST to
11:00am EST
|
Webcast
Access:
|
http://services.choruscall.ca/links/algonquinpower20201214.html
http://services.choruscall.ca/links/algonquinpower20201113.html
|
|
Presentation also
available at: www.algonquinpowerandutilities.com
|
Dial-in
Access:
|
Toll Free
Canada/US
|
1-800-319-4610
|
|
Toronto
local
|
416-915-3239
|
|
Please ask to join
the Algonquin Power & Utilities Corp. conference
call
|
About Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp, parent company of Liberty,
is a diversified international generation, transmission, and
distribution utility with approximately $11
billion of total assets. Through its two business groups,
the Regulated Services Group and the Renewable Energy Group, AQN is
committed to providing safe, secure, reliable, cost-effective, and
sustainable energy and water solutions through its portfolio of
electric generation, transmission, and distribution utility
investments to over one million customer connections, largely in
the United States and
Canada. AQN is a global leader in renewable energy through
its portfolio of long-term contracted wind, solar, and
hydroelectric generating facilities representing over 2 GW of
installed capacity and approximately 1.6 GW of incremental
renewable energy capacity under construction or recently
constructed.
AQN is committed to delivering growth and the pursuit of
operational excellence in a sustainable manner through an expanding
global pipeline of renewable energy and electric transmission
development projects, organic growth within its rate-regulated
generation, distribution, and transmission businesses, and the
pursuit of accretive acquisitions.
AQN's common shares, Series A preferred shares, and Series D
preferred shares are listed on the Toronto Stock Exchange under the
symbols AQN, AQN.PR.A, and AQN.PR.D, respectively. AQN's common
shares, Series 2018-A subordinated notes and Series 2019-A
subordinated notes are listed on the New York Stock Exchange under
the symbols AQN, AQNA and AQNB, respectively.
Visit AQN at www.algonquinpowerandutilities.com and
follow us on Twitter @AQN_Utilities.
Caution Regarding Forward-Looking Information
Certain statements included in this news release constitute
''forward-looking information'' within the meaning of applicable
securities laws in each of the provinces of Canada and the respective policies,
regulations and rules under such laws and ''forward-looking
statements'' within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995 (collectively, ''forward-looking
statements"). The words "will", "expects", "intends", "plans",
"would", "forecasts" and similar expressions are often intended to
identify forward-looking statements, although not all
forward-looking statements contain these identifying words.
Specific forward-looking statements in this news release include,
but are not limited to statements regarding: the expected
performance and growth of AQN, including expectations regarding
future Adjusted Net Earnings per share and dividends; capital
expenditure plans; investment opportunities; expected timing for
closing the Company's acquisitions; expected commercial operations
dates; and new development projects and greenfield opportunities.
These statements are based on factors or assumptions that were
applied in drawing a conclusion or making a forecast or projection,
including the factors and assumptions set out under the heading
"Forward-Looking Statements and Forward-Looking Information" in
AQN's Management Discussion and Analysis for the three and nine
months ended September 30, 2020 (the
"Interim MD&A"). In addition, the Company's expected Adjusted
Net Earnings per share range of $0.71
to $0.76 for the 2021 fiscal year
assumes (a) at the bottom of the range, a pessimistic COVID-19
scenario, closing of the Company's previously-announced acquisition
of New York American Water in the fourth quarter of 2021 and a
conservative renewable resource estimate, and (b) at the top of the
range, very minimal COVID-19 impacts, closing of the Company's
acquisition of New York American Water in the second quarter of
2021, a renewable resource estimate consistent with long-term
averages and normalized weather. Since forward-looking statements
relate to future events and conditions, by their very nature they
rely upon assumptions and involve inherent risks and uncertainties.
AQN cautions that although it is believed that the assumptions are
reasonable in the circumstances, actual results may differ
materially from the expectations set out in the forward-looking
statements. Material risk factors include those set out in the
Interim MD&A, AQN's Management Discussion and Analysis for the
three and twelve months ended December 31,
2019 (the "Annual MD&A"), and AQN's Annual Information
Form for the year ended December 31,
2019, each filed with securities regulatory authorities in
Canada and the United States. Given these risks, undue
reliance should not be placed on these forward-looking statements,
which apply only as of their dates. Other than as specifically
required by law, AQN undertakes no obligation to update any
forward-looking statements to reflect new information, subsequent
or otherwise.
Non-GAAP Financial Measures and Use of Non-GAAP Financial
Measures
The term "Adjusted Net Earnings" is not a recognized measure
under U.S. GAAP. There is no standardized measure of "Adjusted Net
Earnings" and, consequently, AQN's method of calculating this
measure may differ from methods used by other companies and
therefore may not be comparable to similar measures presented by
other companies. A calculation and analysis of "Adjusted Net
Earnings", including a reconciliation to net earnings, is set out
below and can also be found in the Interim MD&A and the Annual
MD&A.
"Adjusted Net Earnings" is a non-GAAP measure used by many
investors to compare net earnings from operations without the
effects of certain volatile primarily non-cash items that generally
have no current economic impact or items such as acquisition
expenses or litigation expenses that are viewed as not directly
related to a company's operating performance. AQN uses "Adjusted
Net Earnings" to assess its performance without the effects of (as
applicable): gains or losses on foreign exchange, foreign exchange
forward contracts, interest rate swaps, acquisition costs, one-time
costs of arranging tax equity financing, litigation expenses and
write down of intangibles and property, plant and equipment,
earnings or loss from discontinued operations, unrealized
mark-to-market revaluation impacts (other than those realized in
connection with the sales of development assets), changes in value
of investments carried at fair value, and other typically
non-recurring items as these are not reflective of the performance
of the underlying business of AQN. The non-cash accounting charge
related to the revaluation of U.S. deferred income tax assets and
liabilities as a result of implementation of the effects of the Tax
Cuts and Jobs Act is adjusted as it is also considered a
non-recurring item not reflective of the performance of the
underlying business of AQN. AQN believes that analysis and
presentation of net earnings or loss on this basis will enhance an
investor's understanding of the operating performance of its
businesses. "Adjusted Net Earnings" is not intended to be
representative of net earnings or loss determined in accordance
with U.S. GAAP, and can be impacted positively or negatively by
these items.
Reconciliation of Adjusted Net Earnings to Net
Earnings
The following table is derived from and should be read in
conjunction with the consolidated statement of operations.
This supplementary disclosure is intended to more fully explain
disclosures related to Adjusted Net Earnings and provides
additional information related to the operating performance of
AQN. Investors are cautioned that this measure should not be
construed as an alternative to consolidated net earnings in
accordance with U.S. GAAP.
The following table shows the reconciliation of net earnings to
Adjusted Net Earnings exclusive of these items:
|
Twelve Months
Ended
December
31
|
(all dollar
amounts in $ millions except per share information)
|
2019
|
|
2018
|
Net earnings
attributable to shareholders
|
$
|
530.9
|
|
|
$
|
185.0
|
|
Add
(deduct):
|
|
|
|
Loss (gain) on
derivative financial instruments1
|
(0.3)
|
|
|
0.6
|
|
Realized (loss) gain
on energy derivative contracts
|
(0.2)
|
|
|
0.1
|
|
Other
Losses
|
15.1
|
|
|
0.8
|
|
Loss (gain) on
foreign exchange
|
3.1
|
|
|
(0.1)
|
|
Acquisition-related
costs
|
11.6
|
|
|
0.7
|
|
Change in value of
investments carried at fair value3
|
(278.1)
|
|
|
138.0
|
|
Costs related to tax
equity financing
|
—
|
|
|
1.3
|
|
Other non-recurring
adjustments
|
2.2
|
|
|
—
|
|
U.S. Tax Reform and
related deferred tax adjustments2
|
—
|
|
|
(18.4)
|
|
Adjustment for taxes
related to above
|
37.0
|
|
|
4.2
|
|
Adjusted Net
Earnings
|
$
|
321.3
|
|
|
$
|
312.2
|
|
Adjusted Net
Earnings per share
|
$
|
0.63
|
|
|
$
|
0.66
|
|
|
1. Excludes the
gain related to the discontinuation of hedge accounting on an
energy hedge put in place early in the development of the Sugar
Creek Wind Project (See Note 24(b)(iv) in the Company's annual
audited consolidated financial statements).
2. Represents
the non-cash accounting adjustment related to the revaluation of
U.S. deferred income tax assets and liabilities as a result of
implementation of the effects of U.S. Tax Reform.
3. See Note
8 in the Company's annual audited consolidated financial
statements.
|
|
|
|
Nine Months
Ended
September 30
|
(all dollar
amounts in $ millions except per share information)
|
2020
|
|
2019
|
Net earnings
attributable to shareholders
|
$
|
278.3
|
|
|
$
|
358.8
|
|
Add
(deduct):
|
|
|
|
Loss (gain) on
derivative financial instruments
|
(1.7)
|
|
|
0.2
|
|
Realized loss on energy
derivative contracts
|
(1.0)
|
|
|
(0.2)
|
|
Other net
losses2
|
44.8
|
|
|
14.2
|
|
Loss (gain) on foreign
exchange
|
(5.6)
|
|
|
0.1
|
|
Change in value of
investments carried at fair value1
|
(95.7)
|
|
|
(180.0)
|
|
Other non-recurring
adjustments
|
1.0
|
|
|
—
|
|
Adjustment for taxes
related to above3
|
18.8
|
|
|
24.6
|
|
Adjusted Net
Earnings
|
$
|
238.9
|
|
|
$
|
217.7
|
|
Adjusted Net
Earnings per share
|
$
|
0.43
|
|
|
$
|
0.43
|
|
|
|
|
|
|
|
|
|
1. See Note 6
in the Company's unaudited interim consolidated financial
statements.
2. See Note 16
in the Company's unaudited interim consolidated financial
statements.
3. Includes a
one-time tax expense of $9.3 million to reverse the benefit of
deductions taken in the prior year. See Note 15 in the
Company's unaudited interim consolidated financial
statements.
|
View original
content:http://www.prnewswire.com/news-releases/algonquin-power--utilities-corp-to-provide-update-on-strategic-initiatives-at-investor-day-301191969.html
SOURCE Algonquin Power & Utilities Corp.