Capital Power meets it's guidance-again
On February 15 Capital Power released it's fourth quarter and annual results. It's fourth quarter was below guidance but still it's annual results met it's expected guidance for it's chief performance statistics.Namely,funds from operations and adjusted EBITDA were within annual guidance.
Performance statistics in the fourth quarter were below trend.Net income and net income per share went from $35 to $28 million and from $.29 per share to $.21 per share.Net cash flows fell even further from $114 million to $69 million for a 55% drop.While the important funds from operations fell from $125 to $75 million.These figures were balanced by the rest of the year.It looks like the stove is coming out but it is going in.
Yearly Operations
The performance indicators were mixed. Net income in 2016 was $111 million and $.91 per share compared to $90 million and $.70 per share in 2015.Although net cash flows were were $375 in 2016 compared to $419 million and the all important funds from operations went from $400 million to $384 million in 2016.The chief performance statistic is adjusted EBITDA as it is the best estimate of earnings. And it went from $461 million in 2015 to $520 million in 2016.
Capital Power gave guidance for 2016 of $380 to $430 million for funds from operations so it came in at the low end of guidance.While guidance for adjusted EBITDA was $500 to $530 million and it came at the upper end of guidance.
Diversifying Energy Sources
Capital Power is still affected by low spot prices for power in Alberta although spot prices are
moving up with the price of oil.But CPX is taking countermeasures to offset the still low price of oil and natural gas.It has just commissioned the 270 MW K2 wind farm near Goderich,Ontario.In addition, it has just completed their 178 MW Bloom Wind project in Kansas which has been operational since the third quarter.Lastly it has acquired two natural gas -fired power facilities in Ontario with output of 284MW.One is near Toronto and the other in Windsor.It also acquired two 5MW waste heat-generated facilities in British Columbia.
2017 Outlook
Power prices are gradually returning to old levels in Alberta.And Capital Power has added a few new,out of province energy sources for 2017.No guidance was given yet for 2017 but this blog expects adjusted EBITDA of $530 to $580 million and earnings per share of $5.25 to $5.75 per share.
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Performance statistics in the fourth quarter were below trend.Net income and net income per share went from $35 to $28 million and from $.29 per share to $.21 per share.Net cash flows fell even further from $114 million to $69 million for a 55% drop.While the important funds from operations fell from $125 to $75 million.These figures were balanced by the rest of the year.It looks like the stove is coming out but it is going in.
Yearly Operations
The performance indicators were mixed. Net income in 2016 was $111 million and $.91 per share compared to $90 million and $.70 per share in 2015.Although net cash flows were were $375 in 2016 compared to $419 million and the all important funds from operations went from $400 million to $384 million in 2016.The chief performance statistic is adjusted EBITDA as it is the best estimate of earnings. And it went from $461 million in 2015 to $520 million in 2016.
Capital Power gave guidance for 2016 of $380 to $430 million for funds from operations so it came in at the low end of guidance.While guidance for adjusted EBITDA was $500 to $530 million and it came at the upper end of guidance.
Diversifying Energy Sources
Capital Power is still affected by low spot prices for power in Alberta although spot prices are
2017 Outlook
Power prices are gradually returning to old levels in Alberta.And Capital Power has added a few new,out of province energy sources for 2017.No guidance was given yet for 2017 but this blog expects adjusted EBITDA of $530 to $580 million and earnings per share of $5.25 to $5.75 per share.
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