Capital Power has an effective year
On February 18,2016 Capital Power reported it's quarterly and annual results.2015 was a strange year for Alberta and for Capital Power.Alberta power prices were quite low at the start of the year but recovered somewhat.But Capital hedged effectively and had a very high plant availability(99%).Also electrical output was higher than it has been for 2 years.The second quarter was difficult but Capital Power (CPX) had a quite good year overall;this was helped by the strong fourth quarter.In addition, CPX added 505 MW of new power generating ability.
The Fourth Quarter
Revenues,at $341 million were down from the same quarter in 2014 at $432 million.While adjusted EBITDA was $121 million versus $141 million for Q4 in 2014.Funds from operations (FFO) were $125 million versus $102 million in 2014.Besides these excellent financial results CPX commenced operations with it's 15MW Beaufort Solar facility in North Carolina.It is also continuing on with it's investment in Genesee 4 and 5 operations in Alberta. It already has a 20 year power purchase agreement.It will be ready to order turbines in the March to June 2016 period.The K2 wind facility has been fully operational since June,2015.
The Full Year
Revenues, at $1253 million were greater than for 2014 at $1225 million.Adjusted EBITDA was $461 million compared to $423 million in 2014.This blog finds this figure a little high as my calculation was only for $411 million.The all important funds from operations were $400 million versus $362 million for the year 2014.This was quite effective as the second quarter results were a little weak.However Capital Power continues to show good management.Besides these robust financial results Capital Power bought back 6 million shares and intends to buy back another 2.5 million shares.
What's up Doc?
How do the prospects for 2016 look for Capital Power?Well Capital Power has continued to build throughout it's somewhat irregular year.It has added more than 500MW of new power generating facilities.Most of it's facilities have been modernized or have new technological generating equipment except for Genesee 1 and 2.Capital Power reiterates it's intention to raise it's dividend by 7% every year until 2018.This blog sees that revenues in the fourth quarter were a little weak compared to 2014 but higher than the second and third quarter.So look for a Q1 2016 with revenues and EBITDA only slightly higher than Q4 but revenues and funds from operations increasing throughout the year as the impact of the new Shepard centre and Genesee 4 and 5 kick in.Sometime during the year CPX will raise it's dividend to $1.57 per share and with a 7% yield the price will be $22 a share.A more stable environment and a slightly more conservative yield of 6% will make the price at $26 a share.So this blog sees a healthy future for Capital Power.
The Fourth Quarter
Revenues,at $341 million were down from the same quarter in 2014 at $432 million.While adjusted EBITDA was $121 million versus $141 million for Q4 in 2014.Funds from operations (FFO) were $125 million versus $102 million in 2014.Besides these excellent financial results CPX commenced operations with it's 15MW Beaufort Solar facility in North Carolina.It is also continuing on with it's investment in Genesee 4 and 5 operations in Alberta. It already has a 20 year power purchase agreement.It will be ready to order turbines in the March to June 2016 period.The K2 wind facility has been fully operational since June,2015.
The Full Year
Revenues, at $1253 million were greater than for 2014 at $1225 million.Adjusted EBITDA was $461 million compared to $423 million in 2014.This blog finds this figure a little high as my calculation was only for $411 million.The all important funds from operations were $400 million versus $362 million for the year 2014.This was quite effective as the second quarter results were a little weak.However Capital Power continues to show good management.Besides these robust financial results Capital Power bought back 6 million shares and intends to buy back another 2.5 million shares.
What's up Doc?
How do the prospects for 2016 look for Capital Power?Well Capital Power has continued to build throughout it's somewhat irregular year.It has added more than 500MW of new power generating facilities.Most of it's facilities have been modernized or have new technological generating equipment except for Genesee 1 and 2.Capital Power reiterates it's intention to raise it's dividend by 7% every year until 2018.This blog sees that revenues in the fourth quarter were a little weak compared to 2014 but higher than the second and third quarter.So look for a Q1 2016 with revenues and EBITDA only slightly higher than Q4 but revenues and funds from operations increasing throughout the year as the impact of the new Shepard centre and Genesee 4 and 5 kick in.Sometime during the year CPX will raise it's dividend to $1.57 per share and with a 7% yield the price will be $22 a share.A more stable environment and a slightly more conservative yield of 6% will make the price at $26 a share.So this blog sees a healthy future for Capital Power.
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