Alterra Power will have a good year ahead
Soon Alterra Power will release it's first quarter results.Alterra is an alternate power generator;it produces power from alternate sources of power including geothermal, solar and wind power.It started in Iceland with geothermal power and in 2016 it drilled a well to increase power generation here.It also has a number of solar and wind power projects under construction primarily in USA.; the total power capacity to be constructed will be 1600 MW.This includes their Flat Top wind project with a capacity of 200MW and may be almost completed by the end of the first quarter.
Boswell Springs
On April 20 Alterra gave a press release telling shareholders that they had just acquired The Boswell Springs wind farm project with a generating capacity of 320MW.This appears to be in addition to the other 1600 MW previously mentioned.As it will be completed in 2020 and will sell 100% of it's capacity in a 20 year power purchase agreement.It expects to qualify for tax credits that will be used to help it's financing.
A comparison Company
I find that another small utility that can be compared to Alterra is Atlantic Power.Both have investments in several countries and both are junior utilities.Atlantic has double the amount of assets but an equal amount of shareholder equity.Atlantic trades at about $3.50 a share while Alterra trades at about $4.50 per share.Atlantic has had finance problems in the past and eliminated it's dividend while Alterra offers a small dividend yielding 1.5%.Atlantic has considerable earnings at about $2.00 per share while Alterra 's is lower at about $.67 per share.Both are in line as Alterra will likely have more growth,especially in 2017.
2017 Summary
Both Alterra and Atlantic Power look like winners for 2017.For example, Atlantic Power just got a $36.1 million compensation award from the Ontario government.And it looks like it will have at least $2.10 of earnings per share for 2017.This means that it's price/earnings ratio will be about 2 and the lowest of all utilities on the TSX.But several financial websites are calling for ATP to be around $5 per share.As it pares down it's debt this will gradually come to be true.Alterra, on the other hand,intends to have about 1500MW of generating capacity up from about 750 MW of capacity. Adjusted earnings could jump from $39 million in 2016 to $50 million in 2017 and earnings per share hit $.80 to $85 per share.This blog finds that these are two junior utilities worth watching in 2017. Use Blogdaleupsome for business forecasts; use Blogdaleupsome for business forecasts
Boswell Springs
On April 20 Alterra gave a press release telling shareholders that they had just acquired The Boswell Springs wind farm project with a generating capacity of 320MW.This appears to be in addition to the other 1600 MW previously mentioned.As it will be completed in 2020 and will sell 100% of it's capacity in a 20 year power purchase agreement.It expects to qualify for tax credits that will be used to help it's financing.
A comparison Company
I find that another small utility that can be compared to Alterra is Atlantic Power.Both have investments in several countries and both are junior utilities.Atlantic has double the amount of assets but an equal amount of shareholder equity.Atlantic trades at about $3.50 a share while Alterra trades at about $4.50 per share.Atlantic has had finance problems in the past and eliminated it's dividend while Alterra offers a small dividend yielding 1.5%.Atlantic has considerable earnings at about $2.00 per share while Alterra 's is lower at about $.67 per share.Both are in line as Alterra will likely have more growth,especially in 2017.
2017 Summary
Both Alterra and Atlantic Power look like winners for 2017.For example, Atlantic Power just got a $36.1 million compensation award from the Ontario government.And it looks like it will have at least $2.10 of earnings per share for 2017.This means that it's price/earnings ratio will be about 2 and the lowest of all utilities on the TSX.But several financial websites are calling for ATP to be around $5 per share.As it pares down it's debt this will gradually come to be true.Alterra, on the other hand,intends to have about 1500MW of generating capacity up from about 750 MW of capacity. Adjusted earnings could jump from $39 million in 2016 to $50 million in 2017 and earnings per share hit $.80 to $85 per share.This blog finds that these are two junior utilities worth watching in 2017. Use Blogdaleupsome for business forecasts; use Blogdaleupsome for business forecasts
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