Algonquin Power & Utilities (US:AQN)2025-08-08 11:28Revenue and Earnings - Revenue for the three months ended June 30, 2025, was $527.8 million, a 2.4% increase from $515.3 million in the same period of 2024[2] - Regulated natural gas distribution revenue increased by 15.5% to $109.0 million in Q2 2025, compared to $94.2 million in Q2 2024[2] - Operating income for the six months ended June 30, 2025, was $243.7 million, up 6.0% from $229.1 million in the same period of 2024[2] - Net earnings attributable to shareholders decreased to $24.1 million in Q2 2025 from $200.7 million in Q2 2024, reflecting a significant decline[2] - Basic and diluted net earnings per share from continuing operations dropped to $0.02 in Q2 2025, compared to $0.26 in Q2 2024[2] - Comprehensive income attributable to shareholders was $36.2 million for Q2 2025, compared to $240.1 million in Q2 2024[3] - Net earnings from continuing operations attributable to common shareholders for Q2 2025 were $14.8 million, compared to $177.4 million in Q2 2024, representing a decrease of approximately 91.66%[56] - Net earnings attributable to common shareholders for the six months ended June 30, 2025, were $112.8 million, compared to $123.3 million for the same period in 2024, a decrease of about 8.12%[56] Assets and Liabilities - Total assets as of June 30, 2025, were $13,693.4 million, down from $16,961.7 million as of December 31, 2024[4] - Long-term debt decreased to $6,020.6 million as of June 30, 2025, from $6,207.0 million at the end of 2024[5] - Cash and cash equivalents increased to $54.3 million as of June 30, 2025, compared to $34.8 million at the end of 2024[4] - As of June 30, 2025, total equity for Algonquin Power & Utilities Corp. was $5,126.2 million, a decrease from $5,149.6 million as of March 31, 2025[6] - The total deficit increased to $(2,915.1) million as of June 30, 2025, from $(2,886.2) million as of March 31, 2025[6] - The balance of common shares as of June 30, 2025, was $7,400.1 million, reflecting an increase from $7,398.6 million as of March 31, 2025[6] Cash Flow and Investments - Cash provided by operating activities for the six months ended June 30, 2025, was $326.4 million, a decrease from $366.9 million in the same period of 2024[14] - The cash balance at the end of the period on June 30, 2025, was $82.6 million, down from $147.5 million at the end of June 30, 2024[15] - Long-term investments increased to $215.0 million as of June 30, 2025, up from $67.8 million at the end of 2024, reflecting a significant growth in investment value[35] - Income from long-term investments for the three months ended June 30, 2025, was $6.7 million, compared to $193.7 million for the same period in 2024, indicating a decrease in investment gains[36] Regulatory and Operational Highlights - Regulatory assets totaled $1,355.7 million as of June 30, 2025, compared to $1,321.0 million as of December 31, 2024, with significant components including securitized costs of $275.1 million and deferred capitalized costs of $211.6 million[32] - AQN's regulatory liabilities amounted to $620.1 million as of June 30, 2025, down from $636.3 million as of December 31, 2024[32] - The Company completed the sale of its renewable energy business (excluding hydro) on January 8, 2025, which has been classified as discontinued operations[26] - The company is transitioning to a premium pure-play utility, incurring one-time costs related to this restructuring strategy[53] Expenses and Costs - Cash dividends on common shares for the six months ended June 30, 2025, totaled $100.5 million, compared to $150.7 million in the same period of 2024, indicating a reduction of approximately 33%[14] - The company reported cash paid for interest expense of $160.8 million for the six months ended June 30, 2025, compared to $206.4 million in the same period of 2024[15] - The company recorded a total interest expense of $67.8 million for the three months ended June 30, 2025, compared to $93.2 million for the same period in 2024, reflecting a decrease in interest costs[46] - Restructuring costs for Q2 2025 amounted to $6.8 million, slightly higher than $6.0 million in Q2 2024, with total restructuring costs for the six months reaching $12.4 million compared to $10.4 million last year[52][53] Foreign Exchange and Risk Management - The company reported a loss on foreign exchange of $14.0 million in Q2 2025, compared to a gain of $2.1 million in Q2 2024, indicating a significant negative shift in foreign exchange impact[60] - The Company employs risk management strategies to mitigate financial risks, using derivative financial instruments to manage exposures to fluctuations in exchange rates, interest rates, and commodity prices[83] Discontinued Operations - For the three months ended June 30, 2025, the company reported revenue from discontinued operations of $83.3 million, with an operating loss of $3.6 million[91] - The company recognized an income tax recovery of $10.6 million during the three months ended June 30, 2025, due to the sale of investment tax credits[91] - Cash flows from operating activities for discontinued operations were $0 million for the three months ended June 30, 2025, compared to $78.3 million in 2024[92]