ATCO today announced adjusted earnings in 2019 of
The earnings increase in 2019 was driven by our non-regulated businesses mainly due to incremental earnings from ATCO Structures' LNG Canada
ATCO had fourth quarter 2019 adjusted earnings of
On
RECENT DEVELOPMENTS IN THE FOURTH QUARTER OF 2019
ATCO Structures
- Progressed both manufacturing and site construction work for the
LNG Canada Cedar Valley Lodge . The facility is being built to house workers involved in the construction of LNG Canada's natural gas liquefaction and export facility inKitimat, BC . - Officially opened the Homes for
Heroes ATCO Village . Homes for Heroes is a community of 15 modular tiny homes inCalgary, Alberta to go along with a robust support system to transition homeless veterans of the Canadian Armed Forces. - Completed the manufacturing supply of Marriott branded units for the
Marriott Fairfield Inn located nearOakland, California under a$7 million contract. A second$7 million manufacturing supply contract for a Marriott branded hotel inNapa Valley, California is in production and expected to be completed in the first quarter of 2020. - Established a new space rentals branch in
Aurora, Colorado to supplement the established workforce housing business and growth in permanent modular construction inthe United States . - Began work on a
$47 million contract to relocate and install an 800-room camp inWestern Australia with completion planned forMarch 2020 . - Won a contract and worked on the design, manufacture and installation of a 400-room, two story accommodation village in Karratha,
Western Australia . The total contract value is$22 million with final handover expected inMay 2020 .
ATCO Frontec
- Secured a
$2 million one-year contract extension to provideNATO Support and Procurement Agency (NSPA) communication and information systems support to theNATO headquarters atCamp Butmir nearSarajevo, Bosnia . - Won a rebid to provide NSPA around-the-clock fire protection services to
NATO troops, known as Kosovo Force, at the Novo Selo Camp near Pristina,Kosovo . The five-year contract is valued at$3 million .
Neltume Ports
- Entered into a 50/50 joint venture (JV) partnership with Terminal Zarate in
January 2020 to build and operate a roll-on roll-off (RoRo) terminal inMobile, Alabama . Neltume Ports' portion of the investment will be approximatelyUS$9 million and will be funded with existing cash reserves.
Canadian Utilities
- Completed the sale of Canadian Utilities' interest in
Alberta PowerLine (APL). APL was a partnership between Canadian Utilities (80 per cent) and Quanta Services, Inc. (20 per cent). Canadian Utilities sold half of its interest to seven Indigenous communities who will own a 40 per cent interest of APL. The remaining 60 per cent of APL will be owned by an investment consortium. Canadian Utilities received aggregate proceeds of$222 million for its interest in APL and will remain as the operator of APL over its 35-year contract with theAlberta Electric System Operator . - Finalized the sale of the Canadian fossil fuel-based electricity generation portfolio. Canadian Utilities received
$821 million of aggregate proceeds on the sale. - Commenced construction on the Pembina-
Keephills natural gas transmission pipeline. The 59-km high-pressure natural gas pipeline supports coal-to-gas conversion of power producers in theGenesee and surrounding areas of Alberta with the capacity to deliver up to 550-TJ per day. The estimated cost to construct this project is approximately$230 million and is expected to be complete in mid-2020. - Secured long-term contracts for a fifth salt cavern hydrocarbon storage facility at the ATCO Heartland Energy Centre. Construction began in the fourth quarter of 2019, with full operation targeted for late 2021.
- Entered into a partnership with a Chilean developer to build and operate an 18-MW solar project, located in southern
Chile . The total investment in this project is expected to be approximately$24 million .
FINANCIAL SUMMARY AND RECONCILIATION OF ADJUSTED EARNINGS
A financial summary of the consolidated subsidiaries of ATCO and a reconciliation of adjusted earnings to earnings attributable to Class I and Class II Shares is provided below:
For the Three Months Ended | For the Year Ended | |||||||
($ millions except share data) | 2019 | 2018 | 2019 | 2018 | ||||
Consolidated adjusted earnings (1) | 101 | 108 | 365 | 355 | ||||
(Loss) gain on sale of operations (2) | (7) | — | 65 | — | ||||
Restructuring and other costs (2) | — | — | — | (39) | ||||
Proceeds from termination of PPA (2) | — | — | — | 19 | ||||
Sale of | — | 46 | — | 46 | ||||
Unrealized gains on mark-to-market forward and swap commodity contracts (2) |
2 |
1 |
3 |
16 | ||||
Rate-regulated activities (2) (3) | (4) | (20) | 98 | (69) | ||||
IT Common Matters decision (2) | (3) | — | (12) | — | ||||
Other (4) | (6) | — | (6) | — | ||||
Earnings attributable to Class I and Class II Shares | 83 | 135 | 513 | 328 | ||||
Weighted average shares outstanding (millions of shares) | 114.4 | 114.4 | 114.4 | 114.4 |
(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) | In the third and fourth quarters of 2019, Canadian Utilities closed a series of transactions on the sale of its Canadian fossil fuel-based electricity generation business and its ownership interest in |
(3) | In the second quarter of 2019, the Government of Alberta enacted a phased decrease in the provincial corporate income tax rate from 12 per cent to 8 per cent. This decrease is being phased in increments from |
(4) | For the year ended |
TELECONFERENCE AND WEBCAST
ATCO will hold a live teleconference and webcast to discuss our year-end 2019 financial results.
Management invites interested parties to listen via live webcast at:
https://www.atco.com/en-ca/about-us/investors/events-presentations.html
A replay of the teleconference will be available approximately two hours after the conclusion of the call until
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 year ended
With approximately 6,500 employees and assets of
Investor Inquiries:
Executive Vice President &
Chief Financial Officer
403-292-7502
Media Inquiries:
Spencer Forgo
Manager,
Public Affairs
403-333-3239
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, 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.
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