ATCO today announced first quarter 2020 adjusted earnings of
Lower adjusted earnings in the first quarter of 2020 were mainly due to the sale of the Canadian fossil fuel-based electricity generation portfolio in the third quarter of 2019 and the sale of
Excluding the forgone earnings impact from these business sales in 2019, adjusted earnings in the first quarter of 2020 were
COVID-19 AND GLOBAL MACROECONOMIC CONDITIONS
The COVID-19 pandemic, oil price decline and slowing global economic activity have caused far-reaching concern and economic hardship for consumers, businesses and communities across the globe.
"ATCO activated our Pandemic Response Plan in
Please see management's discussion and analysis for the quarter ended
RECENT DEVELOPMENTS
ATCO Structures
- Began the manufacturing and installation work on a 12-dorm, 444-person expansion of the
BC Hydro Site C Two Rivers Lodge . The additional rooms are anticipated to be handed over byJune 1, 2020 and will contribute$25 million in installation and rental revenue during the 12-month contract term. - Added two permanent modular construction contracts. Began construction of a
$9 million , 44-unit apartment building inNew Westminster, BC as part of the Government of BC's program to provide affordable housing to low income individuals and families across the province. Awarded a$5 million contract to design, manufacture and install three permanent modular classrooms inMelbourne, Australia with theVictoria Department of Education .
Canadian Utilities
- Completed and placed in-service the Pembina-
Keephills transmission pipeline ahead of schedule and below the$230 million approved budget. The 59-km high-pressure natural gas pipeline supports coal-to-gas conversion of power producers in the Genesee and surrounding areas of Alberta with the capacity to deliver up to 550-TJ per day.
Corporate
- On
March 31, 2020 ATCO declared a second quarter dividend for 2020 of43.52 cents per share or$1.74 per Class I Non-Voting and Class II Voting Share on an annualized basis.
FINANCIAL SUMMARY AND RECONCILIATION OF ADJUSTED EARNINGS
A financial summary of the consolidated subsidiaries of ATCO and a reconciliation of adjusted earnings to earnings attributable to Class I and Class II Shares is provided below:
For the Three Months | |||
($ millions except share data) | 2020 | 2019 | |
Consolidated adjusted earnings (1) | 106 | 112 | |
Unrealized gains on mark-to-market forward and swap commodity contracts (2) | 3 | 3 | |
Rate-regulated activities (2) | (17) | (3) | |
IT Common Matters decision (2) | (2) | — | |
Other (3) | (3) | — | |
Earnings attributable to Class I and Class II Shares | 87 | 112 | |
Weighted average shares outstanding (millions of shares) | 114.4 | 114.3 |
(1) | Adjusted earnings are earnings attributable to Class I and Class II Shares after adjusting for the timing of revenues and expenses associated with rate-regulated activities and unrealized gains or losses on mark-to-market forward and swap commodity contracts. Adjusted earnings also exclude one-time gains and losses, significant impairments, and items that are not in the normal course of business or a result of day-to-day operations. Adjusted earnings present earnings on the same basis as was used prior to adopting International Financial Reporting Standards (IFRS) - that basis being the |
(2) | Refer to Note 3 of the Unaudited Interim Consolidated Financial Statements for the three months ended |
(3) | Each quarter, the Company adjusts the deferred tax asset which was recognized as a result of the |
This news release should be used as preparation for reading the full disclosure documents. ATCO's consolidated financial statements and management's discussion and analysis for the quarter ended
With approximately 6,500 employees and assets of
Investor & Analyst Inquiries:
Executive Vice President & Chief Financial Officer
T: 403-292-7502
Media Inquiries:
Senior Manager, Corporate Communications
T: 587-228-4571
Forward-Looking Information:
Certain statements contained in this news release may 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", and similar expressions.
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information.
The Company's actual results could differ materially from those anticipated in this forward-looking information as a result of regulatory decisions, competitive factors in the industries in which the Company operates, prevailing economic conditions (including as may be affected by the COVID-19 pandemic), and other factors, many of which are beyond the control of the Company.
The Company believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.
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.
SOURCE
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