Core Viewpoint - Algonquin Power & Utilities Corp. (AQN) has shown a mixed performance in Q4-2023, with earnings per share exceeding estimates but overall earnings declining compared to 2022. The company's future performance heavily relies on the successful sale of its renewable assets, which could significantly impact its stock price [1][5][16]. Financial Performance - AQN's Q4-2023 earnings per share were $0.16, surpassing the $0.14 estimate, while adjusted EBITDA beat expectations by 10% [5][6]. - Total revenue for Q4-2023 was $666.9 million, down 11% from $748.0 million in Q4-2022. For the full year, total revenue was $2,698.0 million, a decrease of 2% from $2,765.0 million in 2022 [6]. - The company reported a 13% decline in full-year earnings compared to 2022, despite long-term debt increasing by 13% [5][6]. Outlook and Strategic Moves - AQN has not provided guidance for 2024, focusing instead on the sale of its renewable business, which is expected to be announced in mid-2024 [9][10][12]. - The company is actively pursuing the sale of its renewable assets, with indications of high interest from potential buyers [9][16]. - AQN's management is also working closely with Atlantica Sustainable (AY) to maximize the value of their combined assets, which may influence the sale process [12][14]. Rate Cases and Regulatory Environment - AQN has several pending rate cases in favorable jurisdictions, with authorized revenue increases of $44.1 million reflecting an average authorized Return on Equity (ROE) of approximately 9.6% [17][18]. Renewable Energy Projects - Despite plans to sell its renewable assets, AQN continues to progress on existing renewable projects, indicating ongoing investment in this segment [18][19].
Algonquin: Atlantica Sustainable Sale Looks Probable Soon