Atlantic Power shows Mixed Results for Q4 and Yearend for 2017
Like the wheel- barrow above, Atlantic Power had a mixed bag of results in it's annual report.Operating income was up for Q4 to $31 million from $20 million and for yearend it was $169 million versus $112 million for 2016.Project adjusted EBITDA was $62 million for Q4 compared to $42 million for 2016.While project adjusted EBITDA for 2017 was $289 million versus $202 million for 2016.This annual figure was against annual guidance of $260 to $275 million.In addition, they repaid $166 million of debt in 2017.Lastly their credit rating moved up from B1 to Ba3.
But there was some bad news also.It was forced to decommission it's San Diego plants.While it's Nipigon plant has obtained an enhanced dispatch agreement from November2018 until 2022.In total, ATP has 7 projects with power plant agreements (PPA) that are scheduled to expire between the end of 2017 and September 2018.
2018 Guidance
2018 will be a year with mixed results.Yet it has paid off considerable amount of debt and improved it's credit rating marginally.It also repurchased 93,000 shares at an average price of $2.36 per share.But guidance for project adjusted EBITDA dropped from $289 million in 2017 to $170 to $185 million for 2018.ATP will have to renegotiate better contracts for up to 8 or 9 of it's existing plants.Still it's earnings per share will be around $1.40 to $1.50 per share.With it's present price of $2.75 it is one of the cheapest stocks on the TSX,certainly the cheapest utility stock.
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