Lower adjusted earnings in the second quarter of 2020 were mainly due to the sale of the Canadian fossil fuel-based electricity generation business and 80 per cent ownership interest in
Excluding the forgone earnings impact from the sale of these businesses in 2019 and the prior period earnings impacts from the regulatory decisions received in the second quarter of 2019,
COVID-19 AND GLOBAL MACROECONOMIC CONDITIONS
The COVID-19 pandemic, continued low oil prices and slowing global economic activity have caused far-reaching concern and economic hardship for consumers, businesses and communities across the globe. In this time of uncertainty, our people are working hard to ensure that we continue to support our customers and the communities that depend on our essential services.
Please see management's discussion and analysis for the quarter ended
RECENT DEVELOPMENTS
- Announced on
June 22, 2020 ,LUMA Energy, LLC , a newly-formed company owned 50 per cent byCanadian Utilities and 50 per cent by Quanta Services, had been selected by thePuerto Rico Public-Private Partnerships Authority to transform, modernize and operatePuerto Rico's 30,000 km electricity transmission and distribution system over a term of 15 years after a one year transition period, which commenced in the second quarter of 2020. - Awarded funding from Emission Reductions Alberta's Natural Gas Challenge to advance a first-of-its-kind hydrogen blending project in
Fort Saskatchewan, Alberta . - Declared a third quarter dividend for 2020 on
July 8, 2020 of43.54 cents per share or$1.74 per Class A non-voting and Class B common share on an annualized basis. - Dominion Bond Rating Service affirmed its 'A (high)' long-term corporate credit rating and stable outlook on
Canadian Utilities subsidiaryCU Inc. onJuly 20, 2020 .
FINANCIAL SUMMARY AND RECONCILIATION OF ADJUSTED EARNINGS
A financial summary and reconciliation of adjusted earnings to earnings attributable to equity owners of the Company is provided below:
For the Three Months | For the Six Months | ||||||
($ millions except share data) | 2020 | 2019 | 2020 | 2019 | |||
Adjusted earnings (1) | 94 | 126 | 273 | 326 | |||
Transaction Costs | — | (8) | — | (8) | |||
Impairment and other costs (2) | (30) | — | (30) | — | |||
Unrealized gains (losses) on mark-to-market forward | 3 | (5) | 9 | 1 | |||
Rate-regulated activities (2) | (9) | 184 | (40) | 177 | |||
IT Common Matters decision (2) | (3) | (14) | (7) | (14) | |||
Dividends on equity preferred shares of | 16 | 16 | 33 | 33 | |||
Other (2) | 1 | — | (6) | 1 | |||
Earnings attributable to equity owners of the Company | 72 | 299 | 232 | 516 | |||
Weighted average shares outstanding (millions of shares) | 272.8 | 272.6 | 272.7 | 272.6 |
(1) | Adjusted earnings are defined as earnings attributable to equity owners of the Company after adjusting for the timing of revenues and expenses associated with rate-regulated activities, dividends on equity preferred shares of the Company, 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) | Impairment and other costs mainly relate to certain assets that no longer represent strategic value to the Company. Each quarter, the Company adjusts the deferred tax asset which was recognized as a result of the |
TELECONFERENCE AND WEBCAST
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
This news release should be used as preparation for reading the full disclosure documents.
With approximately 4,600 employees and assets of
Investor & Analyst Inquiries:
Director, Investor Relations & External Disclosure
T: 403-292-7879 C: 403-828-2908
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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