CANADIAN UTILITIES REPORTS 2023 EARNINGS

CALGARY, AB, Feb. 29, 2024 /CNW/ – Canadian Utilities Limited (TSX:CU)

Canadian Utilities Limited (Canadian Utilities or the Company) today announced adjusted earnings in 2023 of $596 million ($2.21 per share), which were $59 million ($0.22 per share) lower compared to $655 million ($2.43 per share) in 2022. Fourth quarter adjusted earnings in 2023 of $192 million ($0.71 per share), were $12 million ($0.05 per share) higher compared to $180 million ($0.66 per share) in the fourth quarter of 2022.

2023 earnings attributable to equity owners of the Company reported in accordance with International Financial Reporting Standards (IFRS earnings) were $707 million ($2.33 per Class A and Class B share), which were $75 million ($0.26 per Class A and Class B share) higher compared to $632 million ($2.07 per Class A and Class B share) in 2022. Fourth quarter earnings attributable to equity owners of the Company reported in accordance with International Financial Reporting Standards (IFRS earnings) were $185 million ($0.61 per Class A and Class B share), $40 million ($0.15 per Class A and Class B share) higher compared to $145 million ($0.46 per Class A and Class B share) in the fourth quarter of 2022.

IFRS earnings include timing adjustments related to rate-regulated activities, unrealized gains or losses on mark-to-market forward and swap commodity contracts, one-time gains and losses, impairments, and items that are not in the normal course of business or a result of day-to-day operations. These items, as well as dividends on equity preferred shares of the Company, are not included in adjusted earnings.

RECENT DEVELOPMENTS

Received the Alberta Utilities Commission (AUC) decisions with respect to the parameters of the third generation of performance-based regulation and the future Generic Cost of Capital parameters, on October 4, 2023 and October 9, 2023, respectively.  We began operating under these new frameworks in 2024.
The Alberta Court of Appeal issued a favourable decision in the second quarter of 2023 in connection with the Fort McMurray (Wood Buffalo) wildfire. This decision resulted in the AUC issuing its decision in December 2023 permitting ATCO Electric to include the net book value of its electric distribution assets destroyed in the Wood Buffalo fire within rate base.
In October 2023, the South Australian Government announced an Early Contractor Involvement agreement with ATCO Australia and our joint venture partner, BOC Linde, for the South Australian Hydrogen Jobs Plan project, a 250-MW Hydrogen production facility, a 200-MW Hydrogen-fuelled electricity generation facility and a Hydrogen storage facility. Activities under this agreement include developing a contract offer price, and negotiation of engineering, procurement, construction and operations and maintenance contracts for delivery and operations of the project.
Incurred $394 million in capital expenditures in the fourth quarter of 2023, of which 91 per cent was invested in ATCO Energy Systems and 9 per cent mainly in ATCO EnPower.

Corporate 

On January 19, 2024, the Company announced the retirement of Executive Vice President and Chief Financial Officer, Brian P. Shkrobot, effective March 1, 2024. Concurrently, it was announced that with the support of the Canadian Utilities’ Board of Directors, Katie Patrick, Executive Vice President, Chief Financial & Investment Officer, ATCO, will broaden her portfolio to include Chief Financial Officer for Canadian Utilities effective March 1, 2024.
On January 11, 2024, Canadian Utilities declared a first quarter dividend of 45.31 cents per share or $1.81 per Class A and Class B shares on an annualized basis.

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:

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