Atlantic Power has good second quarter and raises guidance
On August 10 Atlantic Power released it's second quarter results.A part of the report has already been discussed on Blogdaleup.Wordpress.But the overview is discussed here on Blogger.The 3 month project adjusted EBITDA was $85 million compared to $46 million a year ago but this quarter includes a $25 million settlement from OEFC.Still earnings were greater than in 2016.Also 6 months earnings performance at $150 million was greater than in 2016 at $109 million.This also included Enhanced Dispatch Contracts from the Ontario government for monthly payments but do not require power.That covered Kapuskasing,North Bay and Nipigon plants.
Operational Details
In the second quarter ATP paid off $30 million of term loans and project debt and expects to repay $150 million for the full year.And as discovered in my Wordpress blog (https://blogdaleup.wordpress.com/author/blogdaleup) Atlantic Power took a $57 million write-off against net income.This took net income from a $35 million gain to a $22 million loss.However ATP has made good progress on it's debt profile; the debt to adjusted EBITDA ratio was 5.6 at the start of the year and 5.4 in March and now has dropped to 4.4.And it has obtained an interest rate reduction of 75 basis points in this quarter.Furthermore under it's normal course issuer bid it repurchased $100,000 of convertible debentures and another 172,000 preferred shares.
Summary for 2017
Atlantic Power got a $25 million settlement from OEFC and Enhanced Dispatch contracts that raised annual adjusted EBITDA.Their previous guidance was $225 to $240 million;their new guidance is for $250 to $265 million.This will produce e.p.s. of about $2.40 per share and give ATP a price/earnings ratio of less than 2.Other blogs have predicted a price of $5 a share for 2017 and this blog concurs.Atlantic Power is a screaming buy at it's present price. use Blogdaleup for analysis of utilities'; use Blogdaleup for analysis of Cdn. utilities
Operational Details
In the second quarter ATP paid off $30 million of term loans and project debt and expects to repay $150 million for the full year.And as discovered in my Wordpress blog (https://blogdaleup.wordpress.com/author/blogdaleup) Atlantic Power took a $57 million write-off against net income.This took net income from a $35 million gain to a $22 million loss.However ATP has made good progress on it's debt profile; the debt to adjusted EBITDA ratio was 5.6 at the start of the year and 5.4 in March and now has dropped to 4.4.And it has obtained an interest rate reduction of 75 basis points in this quarter.Furthermore under it's normal course issuer bid it repurchased $100,000 of convertible debentures and another 172,000 preferred shares.
Summary for 2017
Atlantic Power got a $25 million settlement from OEFC and Enhanced Dispatch contracts that raised annual adjusted EBITDA.Their previous guidance was $225 to $240 million;their new guidance is for $250 to $265 million.This will produce e.p.s. of about $2.40 per share and give ATP a price/earnings ratio of less than 2.Other blogs have predicted a price of $5 a share for 2017 and this blog concurs.Atlantic Power is a screaming buy at it's present price. use Blogdaleup for analysis of utilities'; use Blogdaleup for analysis of Cdn. utilities
Comments
Post a Comment