Algonquin Power starts to build
Algonquin Power reported it's second quarter on August 13,2015.Algonquin has $4.5 billion of assets in North America that consist of diversified generation,transmission and distribution facilities.It's operational statistics were up slightly from the same quarter in 2014.Revenue was at $196 million compared to $188 million.The increase was due to the start of commercial operations at St.Damase,Quebec plus the Morse wind facility,the Bakersfield,California II Solar Facilities and good rate settlements.Adjusted EBITDA was $81 million compared to $66 million in 2014.The increase over the first quarter makes it on track to hit $375 to $385 million for the year.
Operational statistics for the first half were ahead also.Revenues for 6 months was $578 million compared to $530 million for 2014.While 6 month EBITDA was $195 million compared to $165 million in 2014.EBITDA per share was almost the same for both quarters.
Highlights of the second quarter
Several significant events took place in this quarter.On April 22 it completed construction of the 23 MW Morse wind project.This is their 8th wind generating facility and it already has a 20 year power purchase agreement.On April 14 it completed the 20MW Bakersfield II Solar Project .This is their second solar project and has a 20 year power purchase agreement.Now they are working on their Bakeresfield I solar generating facility.Also there was a $12 million revenue increase from a rate settlement for Energy North.Lastly there was a dividend increase of 10% from $.35 to $.385 per share.
The last significant event in the quarter was entering into a note purchase agreement for the issuance of $160 million in new senior unsecured 30 year notes .This was a private placement of 4.13% notes that will be partly used to finance their Park Water System which won't begin commercial operation until 2016.
When will Algonquin Power hit $12 per share?
This is a transitional quarter for Algonquin;it is waiting for the commercial operation of it's two big projects.Thta is,the Park Water system and the O'dell wind farm.The three additions in this quarter add only 60MW of power to Algonquin's grid.Nevertheless they are not regulated projects; they have 20 year power purchase agreements.This is Algonquin's main risk;they run the risk of getting eight or nine bad rate decisions over a one or two year period.
Algonquin has almost 80% of it's assets in U.S.A now and this will increase when the Park Water system comes onstream.But it also has a high percentage of it's revenues subject to American regulators.This blog advises Algonquin to sell at least one (and maybe two) of it's profitable American regulated assets.This will reduce overall business risk and help it to make a capital gain.
The addition to revenues and EBITDA in this quarter are only 7 to 15%.It has only added three small projects to it's grid.The big projects are to come.But with these additions and a 10% dividend increase Algonquin should be able to push closer to $10 per share and ready to move up further when the big projects come onstream.That's when Algonquin should be getting closer to $12 per share.
Operational statistics for the first half were ahead also.Revenues for 6 months was $578 million compared to $530 million for 2014.While 6 month EBITDA was $195 million compared to $165 million in 2014.EBITDA per share was almost the same for both quarters.
Highlights of the second quarter
Several significant events took place in this quarter.On April 22 it completed construction of the 23 MW Morse wind project.This is their 8th wind generating facility and it already has a 20 year power purchase agreement.On April 14 it completed the 20MW Bakersfield II Solar Project .This is their second solar project and has a 20 year power purchase agreement.Now they are working on their Bakeresfield I solar generating facility.Also there was a $12 million revenue increase from a rate settlement for Energy North.Lastly there was a dividend increase of 10% from $.35 to $.385 per share.
The last significant event in the quarter was entering into a note purchase agreement for the issuance of $160 million in new senior unsecured 30 year notes .This was a private placement of 4.13% notes that will be partly used to finance their Park Water System which won't begin commercial operation until 2016.
When will Algonquin Power hit $12 per share?
This is a transitional quarter for Algonquin;it is waiting for the commercial operation of it's two big projects.Thta is,the Park Water system and the O'dell wind farm.The three additions in this quarter add only 60MW of power to Algonquin's grid.Nevertheless they are not regulated projects; they have 20 year power purchase agreements.This is Algonquin's main risk;they run the risk of getting eight or nine bad rate decisions over a one or two year period.
Algonquin has almost 80% of it's assets in U.S.A now and this will increase when the Park Water system comes onstream.But it also has a high percentage of it's revenues subject to American regulators.This blog advises Algonquin to sell at least one (and maybe two) of it's profitable American regulated assets.This will reduce overall business risk and help it to make a capital gain.
The addition to revenues and EBITDA in this quarter are only 7 to 15%.It has only added three small projects to it's grid.The big projects are to come.But with these additions and a 10% dividend increase Algonquin should be able to push closer to $10 per share and ready to move up further when the big projects come onstream.That's when Algonquin should be getting closer to $12 per share.
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