Algonquin Power & Utilities Q3: Earnings Miss, Bad Weather Impact & More

Algonquin Power & Utilities Corp AQN reported a Q3 2023 revenue decline of 6% Y/Y to $624.7 million, missing the consensus of $648.9 million.

In Q3, the Regulated Services Group recorded a revenue increase of $12.1 million Y/Y, led by the implementation of new rates and recovery of investments at its CalPeco, Empire, Granite State, Bermuda Electric Systems, and the Park Water System. 

The Renewable Energy Group business growth was impacted by more challenging weather conditions at the wind and solar assets in Q3.

Adjusted EBITDA rose 2% Y/Y to $281.3 million. Adjusted Net Earnings rose 8% Y/Y to $79.3 million in the quarter.

Adjusted Funds from Operations fell 17% Y/Y to $167.4 million. Adjusted EPS of $0.11 missed the consensus of $0.12. 

Operating cash flow rose to $132.6 million in Q3 from $102.9 million a year ago.

Dividend: AQN declared a Q4 2023 dividend per share of $0.1085, payable on January 15, 2024, to the shareholders of record as of December 29, 2023. 

On August 10, the company announced the appointment of energy industry veteran Christopher Huskilson as the interim CEO. He replaced Arun Banskota, who has stepped down as President and CEO and as a member of the Board of the company.

Chris Huskilson said, "We have launched the sale process for our portfolio of high-quality renewable assets and extensive development pipeline, and we remain focused on appropriate valuation. With regards to the quarter, we continued to see constructive growth from rate cases and new development projects year over year. However, we also saw those efforts partially offset by unfavourable weather and higher interest rates."

Also Read: Algonquin Power & Utilities Gears Up For Q3 Print; Here's A Look At Recent Price Target Changes By The Most Accurate Analysts

Price Action: AQN shares are trading higher by 0.18% at $5.60 premarket on the last check Friday.