Algonquin Power & Utilities (US:AQN)2025-05-09 10:47Financial Performance - Revenue for Q1 2025 increased to $692.4 million, up 7.5% from $646.2 million in Q1 2024[2] - Operating income rose to $178.9 million, compared to $143.6 million in the same period last year, reflecting a 24.6% increase[2] - Net earnings attributable to shareholders improved to $96.8 million, a significant recovery from a loss of $89.1 million in Q1 2024[2] - Basic and diluted net earnings per share from continuing operations was $0.12, compared to a loss of $0.09 in Q1 2024[2] - The company reported a comprehensive income of $17.5 million, a recovery from a comprehensive loss of $123.1 million in Q1 2024[3] - For the three months ended March 31, 2025, Algonquin Power & Utilities Corp. reported net earnings of $78.9 million, a significant improvement compared to a net loss of $120.3 million in the same period of 2024[9]. - Net earnings from continuing operations attributable to common shareholders for Q1 2025 were $92.8 million, compared to a loss of $59.2 million in Q1 2024[52]. - The diluted net earnings per share for Q1 2025 was $0.12, compared to a loss of $0.13 per share in Q1 2024[52]. Assets and Liabilities - Total assets decreased to $13.66 billion from $16.96 billion at the end of 2024, primarily due to the derecognition of assets held for sale[4][5] - The company's total equity decreased to $5,149.6 million as of March 31, 2025, down from $6,624.4 million at the end of 2023, primarily due to the derecognition on the sale of the renewable energy business[6][7]. - Long-term debt decreased to $6.03 billion from $6.21 billion, indicating improved debt management[5] - The company had total liquidity and capital reserves of $1,911.9 million as of March 31, 2025, compared to $1,510.8 million at the end of 2024[43] - As of March 31, 2025, the company's long-term debt totaled $6,026.6 million, a decrease from $6,207.0 million as of December 31, 2024[41] - The total liabilities associated with assets held for sale amounted to $1,727.3 million[85]. Cash Flow and Liquidity - Cash and cash equivalents increased to $72.2 million, up from $34.8 million at the end of 2024, enhancing liquidity[4] - Cash provided by operating activities for Q1 2025 was $73.9 million, compared to $130.8 million in Q1 2024, reflecting a decrease in net change in non-cash operating items[9]. - The total cash, cash equivalents, and restricted cash at the end of Q1 2025 was $90.5 million, a decrease from $108.0 million at the end of Q1 2024[10]. - The company accrued $62.7 million in interest expense as of March 31, 2025, down from $77.0 million at the end of 2024[43]. - The company had a total of $1,908.4 million in liquidity available under its credit facilities as of March 31, 2025, an increase from $1,539.3 million at the end of 2024[43]. Regulatory and Revenue Increases - AQN's regulatory proceedings include a general rate case for BELCO, which resulted in a revenue allowance of $224.1 million for 2022 and $226.2 million for 2023, with a 7.16% rate of return approved[29] - The Missouri Water utility filed for an increase in revenues of $8.1 million, with a settlement approved for an annual revenue increase of approximately $6.2 million effective March 1, 2025[29] - Arkansas Water sought a revenue increase of $2.3 million, with a settlement resulting in an annual revenue increase of $1.5 million effective March 1, 2025[29] - New Brunswick Gas filed for a revenue increase of C$1.6 million, with an annual increase of C$1.2 million authorized by the New Brunswick Energy & Utilities Board[29] - Regulated Services Group revenue for Q1 2025 was $667.5 million, up from $624.9 million in Q1 2024, indicating a year-over-year increase of about 6.8%[57]. Discontinued Operations - Algonquin Power & Utilities Corp. has disposed of its Renewable Energy Group as of January 8, 2025, and its net earnings are now reported as discontinued operations[11]. - The company reported an operating loss from discontinued operations of $1.3 million for the three months ended March 31, 2025, compared to a loss of $11.1 million in the same period of 2024[86]. - AQN's renewable energy business (excluding hydro) has been classified as "discontinued operations" following the agreement to sell it on August 9, 2024[21]. Capital Expenditures and Investments - The company incurred $222.6 million in additions to property, plant, and equipment in Q1 2025, compared to $212.5 million in Q1 2024[9]. - Capital expenditures for Q1 2025 amounted to $100.7 million, compared to $763.8 million in Q1 2024[57]. - The Company recognized $5.6 million of carrying charges on regulatory balances during the three months ended March 31, 2025[31]. - Long-term investments carried at fair value decreased to $1.9 million as of March 31, 2025, from $2.1 million at the end of 2024[34]. Other Financial Metrics - Interest expense decreased to $71.4 million from $89.6 million, contributing to improved net earnings[2] - The effective income tax expense for the three months ended March 31, 2025, was $19.8 million, compared to $1.6 million in 2024[49]. - The company recognized a decrease in depreciation and amortization expenses to $95.3 million in Q1 2025 from $129.5 million in Q1 2024[9]. - The company recorded changes in non-cash operating items totaling $(96.9) million for the three months ended March 31, 2025, compared to $(54.5) million for the same period in 2024[64].