ATCO Reports Third Quarter 2022 Earnings

ATCO Ltd. (ATCO or the Company) today announced third quarter 2022 adjusted earnings of $87 million ($0.76 per share), $18 million ($0.16 per share) higher compared to $69 million ($0.60 per share) in the third quarter of 2021.

Third quarter earnings attributable to Class I and Class II Shares reported in accordance with International Financial Reporting Standards (IFRS earnings) were $71 million ($0.62 per share), $19 million ($0.16 per share) higher compared to $52 million ($0.46 per share) in the third quarter of 2021.

IFRS earnings include timing adjustments related to rate-regulated activities, unrealized gains or losses on mark-to-market forward and swap commodity contracts, one-time gains and losses, impairments, and items that are not in the normal course of business or a result of day-to-day operations. These items are not included in adjusted earnings. 

Recent Developments in the Third Quarter of 2022

ATCO Structures 

• Completed the stage one milestone of the Bechtel Pluto Train II project as detailed in our Company’s Management’s Discussion and Analysis for the year ended December 31, 2021. This included the handover of manufactured units for construction of a 2,500-person accommodation village.
• Awarded a rental contract for 40 space rentals units for a data center in the Northwestern United States. The contract commenced in August 2022 for an initial term of 14 months.
• Awarded a rental contract for 50 space rentals units to support the LNG export facility construction project in Plaquemines Parish, Louisiana. The contract term is 36 months and commenced in September 2022.
• In August 2022, ATCO Espaciomovil completed construction of a hospital that includes 168 beds in Escuintla, Guatemala, about 60-km southwest of Guatemala City.

ATCO Frontec

• On September 30, 2022, transition work was completed for the previously announced North Warning System contract awarded in February 2022, with the Operations and Maintenance contract year one beginning on October 1, 2022.
• On October 3, 2022, announced Nasittuq Corporation was awarded a $122 million contract to provide support services at the Canadian Forces Station (CFS) Alert on Ellesmere Island, by Public Services and Procurement Canada, on behalf of the Department of National Defence. Nasittuq is an Inuit majority-owned corporation and a partnership between ATCO Frontec and Nunasi Corporation and Pan Arctic Inuit Logistics Corporation. Nasittuq has been the incumbent provider since 2012 for this contract, and the new contract is set to commence June 1, 2023.
• Secured a three year contract for the provision of camp services to Pogo Gold Operations at Pogo Mine near Fairbanks, Alaska. The project is set to commence on November 1, 2022.

Canadian Utilities

• Subsequent to quarter-end, on October 5, 2022, Canadian Utilities announced it has entered into a definitive agreement with Suncor Energy Inc. to acquire a portfolio of assets that includes a 252-MW suite of operational wind facilities and a more than 1,500-MW development pipeline of wind and solar projects in Alberta and Ontario for a purchase price of approximately $730 million, subject to closing adjustments. This investment drives meaningful progress towards our previously announced goal of owning, developing or managing more than 1,000-MW of renewable energy by 2030 and is expected to be earnings and cash flow accretive in the first year of operations. The transaction is expected to close in the first quarter of 2023 and is subject to regulatory approvals and closing conditions.
• Announced a $9 million AUD recoverable grant had been awarded from the New South Wales Government to help fund pre-investment activities in the development of the 325-MW Central West Pumped Storage Hydro project in Australia. A final investment decision on project construction is expected in 2023.
• In August 2022, the Government of the Northwest Territories announced it is providing Northland Utilities, a 50/50 joint-venture partnership between ATCO Ltd. and Denendeh Investments, with up to $300,000 to support the installation of two public electric vehicle (EV) fast-charger stations in Yellowknife. This collaboration is the first step in the planned EV charging corridor between Yellowknife and the Alberta border.

Corporate

• On October 13, 2022, ATCO declared a fourth quarter dividend of 46.17 cents per share or $1.85 per share on an annualized basis per Class I Non-Voting and Class II Voting Share.

For the complete press release, click here.

About ATCO

With approximately 6,400 employees and assets of $23 billion, ATCO is a diversified global corporation with investments in the essential services of Structures & Logistics (workforce and residential housing, innovative modular facilities, construction, site support services, workforce lodging services, facility operations and maintenance, defence operations services, and disaster and emergency management services); Utilities (electricity and natural gas transmission and distribution, and international operations); Energy Infrastructure (energy storage, energy generation, industrial water solutions, and clean fuels); Retail Energy (electricity and natural gas retail sales, and whole-home solutions); Transportation (ports and transportation logistics); and Commercial Real Estate. More information can be found at www.ATCO.com.

Contact:

Colin Jackson – Senior Vice President, Finance, Treasury, Risk & Sustainability – Colin.Jackson@atco.com – (403) 808–2636

Source: ATCO Ltd.