Algonquin Power & Utilities (US:AQN)2022-08-12 18:02Financial Data and Key Metrics Changes - Q2 adjusted EBITDA was $289.3 million, an 18% increase year-over-year from $244.9 million [6][21] - Q2 adjusted net earnings per share was $0.16, compared to $0.15 in the prior year, representing a 7% increase [6][23] Business Line Data and Key Metrics Changes - The regulated services group reported operating profit of $185.9 million, up 15% from $161.1 million in the same quarter last year [21] - The renewable energy group reported operating profit of $117.9 million, a 22% increase from $97 million in the same quarter last year [22] Market Data and Key Metrics Changes - The acquisition of Liberty New York Water added approximately 45% of total customer connections and 15% of regulated business EBITDA [8] - The company is in discussions regarding the acquisition of Kentucky Power, with expectations to close in the second half of 2022 [10][28] Company Strategy and Development Direction - The company focuses on three strategic pillars: growth, operational excellence, and sustainability [7] - A five-year capital plan of $12.4 billion is in place, with a significant portion aimed at organic growth [7][24] - The company is actively pursuing renewable energy projects, including a 175-megawatt facility in Saskatchewan and various solar projects [11][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to close the Kentucky Power transaction despite regulatory challenges [10][36] - The company anticipates benefits from the Inflation Reduction Act of 2022, which could enhance investment opportunities in renewable energy [31][32] Other Important Information - The company achieved a Baa2 long-term issuer rating from Moody's, which is expected to broaden access to debt capital markets [25] - The company reported a 15% improvement in greenhouse gas emissions intensity compared to the previous year [18][19] Q&A Session Summary Question: Progress on the sale of Kentucky Power - Management is working closely with AEP to resolve inconsistencies in regulatory orders and remains confident in closing the transaction in the second half of 2022 [36] Question: Contribution from the RNG acquisition - The RNG project is seen as a learning opportunity, with expected contributions of approximately 500 MMBtu per day once fully operational [39] Question: Update on renewable asset sales - Strong interest from financial players in long-lived, well-contracted sustainable infrastructure has been observed, with management presentations ongoing [43]