Algonquin Power & Utilities (US:AQN)2024-11-07 11:51Revenue and Income - Revenue from regulated electricity distribution for Q3 2024 was $361,397, an increase of 2.1% compared to $354,296 in Q3 2023[2] - Regulated natural gas distribution revenue decreased by 10.1% to $65,722 in Q3 2024 from $73,051 in Q3 2023[2] - Operating income for Q3 2024 was $111,077, down 11.3% from $125,283 in Q3 2023[2] - Total net revenue for the three months ended September 30, 2024, was $560,326, compared to $550,915 for the same period in 2023[54] - Net revenue for the nine months ended September 30, 2024, was $1,306,776, compared to $1,274,720 for the same period in 2023, indicating an increase of about 2.5%[58] - Total revenue for the nine months ended September 30, 2024, was $1,694,752, a decrease from $1,776,510 in the same period of 2023, representing a decline of approximately 4.6%[57] Net Loss and Earnings - Net loss attributable to common shareholders for Q3 2024 was $1,308,392, compared to a loss of $176,666 in Q3 2023[2] - Basic and diluted net loss per share from continuing operations was $(1.71) in Q3 2024, compared to $(0.26) in Q3 2023[2] - Comprehensive loss for Q3 2024 was $(1,304,893), compared to $(205,287) in Q3 2023[5] - The net loss for the three months ended September 30, 2024, was $1,305,699, compared to a net loss of $174,549 for the same period in 2023, reflecting a significant increase in losses[8] - The diluted net loss per share for the three months ended September 30, 2024, was $(1.70), compared to $(0.26) for the same period in 2023[47] - The company reported a total net loss attributable to common shareholders of $(1,308,392) for the three months ended September 30, 2024[47] Assets and Liabilities - Total assets as of September 30, 2024, were $17,788,645, a decrease from $18,373,961 as of December 31, 2023[6] - As of September 30, 2024, total liabilities amounted to $17,788,645, a decrease from $18,373,961 on December 31, 2023, reflecting a reduction of approximately 3.2%[7] - The total equity attributable to shareholders decreased to $4,843,256 from $5,039,565, indicating a decline of approximately 3.9%[7] - The total equity as of September 30, 2024, was $6,352,682, down from $6,624,408 at the end of 2023, a decrease of approximately 4.1%[11] - Total assets held for sale as of September 30, 2024, amounted to $3,472,131, a decrease from $4,160,922 as of December 31, 2023[76] Cash and Liquidity - Cash and cash equivalents increased to $64,341 as of September 30, 2024, from $25,051 at the end of 2023[6] - As of September 30, 2024, total liquidity and capital reserves amounted to $1,890,842, an increase from $920,199 as of December 31, 2023[33] - The company had $1,891,301 in liquidity available under its credit facilities as of September 30, 2024, compared to $934,596 at the end of 2023[33] Debt and Interest Expenses - The company's long-term debt increased to $7,211,946 as of September 30, 2024, compared to $6,878,299 at the end of 2023, representing an increase of about 4.8%[7] - Long-term debt interest expenses for the three months ended September 30, 2024, were $77,239, compared to $54,422 for the same period in 2023, reflecting a year-over-year increase of 42%[34] - The company issued $500,000 of senior notes with a 5.577% interest rate due January 31, 2029, and $350,000 of senior notes with a 5.869% interest rate due January 31, 2034[33] Regulatory and Operational Updates - AQN's regulated utility operating companies are subject to cost-of-service regulation, with several regulatory proceedings currently underway[22] - BELCO's revenue allowance application for 2024 and 2025 requested a $59,100 increase, with a final order authorizing a $33,600 increase based on a weighted average cost of capital of 7.79%[23] - Empire Electric received a revenue increase of $5,300 based on a 44% equity ratio, effective January 1, 2024[23] - New York Water was authorized a $38,600 revenue increase over a three-year rate plan, effective September 1, 2024[23] - Midstates Gas in Illinois received a total increase of $3,200 or 22.32% in base rate revenues, with new rates anticipated to be effective within 30 days from the order date[23] Discontinued Operations - AQN's renewable energy business (excluding hydro) has been classified as discontinued operations following an agreement to sell it to LS Power[18] - The discontinued operations reported a loss from discontinued operations of $(1,363,993) for the period ended September 30, 2024, compared to a loss of $(13,008) for the same period in 2023[77] - The impairment recorded for the discontinued operations was approximately $1,297,954, reflecting the write-down of property, plant, and equipment to estimated fair value[77] Shareholder Information - Common shares outstanding increased to 7,390,369 as of September 30, 2024, up from 6,229,994 at the end of 2023, reflecting an increase of approximately 18.7%[7] - Dividends declared for common shares in the nine months ended September 30, 2024, totaled $209,573, down from $226,382 in 2023, a decrease of 7.4%[43] - The dividend rate on Series D Preferred Shares was reset to 6.853% effective March 31, 2024, with no shares converted to Series E Shares due to fewer than 1,000,000 shares tendered[41] Capital Expenditures - Capital expenditures for the Regulated Services Group were $155,698 for the three months ended September 30, 2024, compared to $211,693 for the same period in 2023[51] - Capital expenditures for the nine months ended September 30, 2024, totaled $506,746, compared to $587,291 in the same period in 2023, a decrease of about 13.7%[58] Other Financial Metrics - The company recognized total interest expenses of $274,132 for the nine months ended September 30, 2024, compared to $232,653 for the same period in 2023, marking an increase of 18%[34] - The company accrued estimated losses of $172,300 related to the Mountain View Fire, with expected recoveries through insurance of $116,000[29] - The company recognized carrying charges on regulatory balances of $5,719 and $18,448 for the three and nine months ended September 30, 2024, respectively, compared to $11,514 and $29,415 in the same periods of 2023[25]