Atlantic Power reports 2014 results
On March5, Atlantic Power reported it's fourth quarter and year-end results.Annual adjusted EBITDA was $299 million which was ahead of results for 2013 of $269 million and at the top end of guidance.Project revenue was $569 million for the year which is ahead of revenues last year of $544 million.Fourth quarter results were positive also;Q4 revenues were $143 million versus $130 million for 2013 and Q4 adjusted EBITDA was $77 million in comparison to $59 million for 2013.
Overview
Atlantic Power is an utility based in Boston and it owns 2945 MW of generating capacity with another 300MW of capacity being built in Oklahoma in a wind farm project.It owns 28 generating stations.It has just recently began operations at it's new plant called Piedmont and has almost built another called Ridgeline.Although it has met guidance for 2014 at $285 to $300 million, it has lowered it's guidance for 2015 to $265 to $285 million.The reduction in adjusted EBITDA is due to new power contracts for two plants in Ontario and a gas turbine overhaul for one of it's older plants called Manchief.Although ATP had a good year it gave no mention in it's report about rasing it's dividend.ATP was paying $.40 per share and lowered it to $.12 per share;this has caused the stock price to tumble and some analysts believe there might be room to raise the dividend by up to another $.08 without affecting covenants on it's debt . ATP has a substantial amount of generating capacity and some pretty good assets but must make more aggressive moves if it is going to get it's stock price back closer to it's 2012 value of $15 a share.It has not lost a substantial amount of generating capacity since 2012(2 plants in 2013) but it will have to take more progressive moves to create more interest in it's share price.If ATP can raise it's dividend(without breaking covenants on it's debt) and shore up it's equity position on older plants (plus overhauling a plant like Manchief) it is not too difficult to see an equity issue in late 2015 or early 2016.This will help to send the stock back up towards $5 by the third quarter of 2015.
Overview
Atlantic Power is an utility based in Boston and it owns 2945 MW of generating capacity with another 300MW of capacity being built in Oklahoma in a wind farm project.It owns 28 generating stations.It has just recently began operations at it's new plant called Piedmont and has almost built another called Ridgeline.Although it has met guidance for 2014 at $285 to $300 million, it has lowered it's guidance for 2015 to $265 to $285 million.The reduction in adjusted EBITDA is due to new power contracts for two plants in Ontario and a gas turbine overhaul for one of it's older plants called Manchief.Although ATP had a good year it gave no mention in it's report about rasing it's dividend.ATP was paying $.40 per share and lowered it to $.12 per share;this has caused the stock price to tumble and some analysts believe there might be room to raise the dividend by up to another $.08 without affecting covenants on it's debt . ATP has a substantial amount of generating capacity and some pretty good assets but must make more aggressive moves if it is going to get it's stock price back closer to it's 2012 value of $15 a share.It has not lost a substantial amount of generating capacity since 2012(2 plants in 2013) but it will have to take more progressive moves to create more interest in it's share price.If ATP can raise it's dividend(without breaking covenants on it's debt) and shore up it's equity position on older plants (plus overhauling a plant like Manchief) it is not too difficult to see an equity issue in late 2015 or early 2016.This will help to send the stock back up towards $5 by the third quarter of 2015.
Comments
Post a Comment