Algonquin Power learns new ways
On November 5, Algonquin Power reported it's third quarter results and it's results were quite good.Revenue for the quarter was $190 million compared to $151 million for 2014.And for the nine months revenue was $767 million compared to $682 million for 2014.The increase was due to the start of commercial operations at Ste. Damase wind facility,Morse wind facility,Bakersfield I solar facility and successful rate settlements.
Financially speaking
Revenue was up about 15% and adjusted EBITDA was $70 million compared to $41 million in the same quarter in 2014.For 9 months adjusted EBITDA was $266 million compared to $206 million.While net earnings were $81 million or $.29 per share.Net earnings is a derived figure with accounting inclusions and doesn't reflect performance as well as EBITDA. So earnings per share for 9 months was $1.11 per share.And Algonquin is on track to hit e.p.s. of $1.45 per share for the year.This makes it's p/e ratio less than 8 and is very reasonable for a safe utility stock.
The fourth Quarter
Algonquin had some new sources of revenue coming onstream in the third quarter; mainlytwo new wind facilities and a solar installation.Both revenues and EBITDA reflected the additional sources.There will likely be greater revenues coming from these facilities in the fourth quarter.Algonquin will also have two new facilities coming into commercial operation -Cornwall and Bakersfield II.So the increase in trend seen in Q3 should continue into the fourth quarter.Their big project called Park water System will not come onstream until the first quarter of 2016 and not have an impact until Q2 of 2016.
Algonquin set a high goal for it's guidance this year of $355 to $375 million.With an increase in revenues from it's two new wind facilities and Bakersfield solar Algonquin may indeed hit it's guidance of $375 million for 2015.No revenue is expected from it's new joint development project in Michigan until the second half of 2016.But Algonquin will have major new sources of revenue in 2016.They just raise their dividend in Q2 and it seems to be well covered now and even safer in 2016.
seeBlogdaleupsome for solid analysis of utilities;use Blogdaleupsome for financial and corporate analysis
Financially speaking
Revenue was up about 15% and adjusted EBITDA was $70 million compared to $41 million in the same quarter in 2014.For 9 months adjusted EBITDA was $266 million compared to $206 million.While net earnings were $81 million or $.29 per share.Net earnings is a derived figure with accounting inclusions and doesn't reflect performance as well as EBITDA. So earnings per share for 9 months was $1.11 per share.And Algonquin is on track to hit e.p.s. of $1.45 per share for the year.This makes it's p/e ratio less than 8 and is very reasonable for a safe utility stock.
The fourth Quarter
Algonquin had some new sources of revenue coming onstream in the third quarter; mainlytwo new wind facilities and a solar installation.Both revenues and EBITDA reflected the additional sources.There will likely be greater revenues coming from these facilities in the fourth quarter.Algonquin will also have two new facilities coming into commercial operation -Cornwall and Bakersfield II.So the increase in trend seen in Q3 should continue into the fourth quarter.Their big project called Park water System will not come onstream until the first quarter of 2016 and not have an impact until Q2 of 2016.
Algonquin set a high goal for it's guidance this year of $355 to $375 million.With an increase in revenues from it's two new wind facilities and Bakersfield solar Algonquin may indeed hit it's guidance of $375 million for 2015.No revenue is expected from it's new joint development project in Michigan until the second half of 2016.But Algonquin will have major new sources of revenue in 2016.They just raise their dividend in Q2 and it seems to be well covered now and even safer in 2016.
seeBlogdaleupsome for solid analysis of utilities;use Blogdaleupsome for financial and corporate analysis
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