OAKVILLE, Ont. — Algonquin Power and Utilities Corp. slashed its dividend by 40 per cent and said it will look to sell an additional $1 billion in assets as part of a plan to strengthen its financial position.

The company says it will now pay a quarterly dividend of 10.85 cents per share, down from 18.08 cents per share.

Algonquin CEO Arun Banskota says the company has reached an inflection point and, as markets continue to evolve, it must address the challenges facing the business.

The company says proceeds from its asset sales are expected to be used to pay down debt and continue to fund growth.

In its outlook, the company says it expects adjusted net earnings per share, excluding gains or losses on asset sales, of 55 cents to 61 cents for its 2023 financial year.

Algonquin shares plunged in November after it reported a third-quarter loss and cut its financial guidance for 2022 due to higher interest rates and inflation, delays in the construction and completion of some of its renewable energy projects, and anticipated delays in certain rate decisions.

This report by The Canadian Press was first published Jan. 12, 2023.

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