ATCO Reports Second Quarter 2024 Earnings

ATCO Ltd. (ATCO or the Company) announced second quarter 2024 adjusted earnings of $96 million ($0.86 per share), $9 million ($0.09 per share) higher compared to $87 million ($0.77 per share) in the second quarter of 2023.

Second quarter earnings attributable to Class I and Class II Shares reported in accordance with International Financial Reporting Standards (IFRS earnings) were $52 million ($0.46 per share), $27 million ($0.24 per share) lower compared to $79 million ($0.70 per share) in the second quarter of 2023.

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

ATCO Structures

• Awarded an $87 million contract for a 700-person rapid deployment construction camp in support of mining projects in the Pilbara region of Western Australia. Manufacturing and site works are expected to commence in the third quarter of 2024 with final site completion anticipated in the fourth quarter of 2025.
• Awarded a $78 million contract for a 410-person construction camp in Hughenden, Queensland, and a 230-person construction camp in Richmond, Queensland. Both camps are in support of the CopperString 2032 high-voltage transmission line project in North Queensland, Australia. Manufacturing and site works are expected to commence in the third quarter of 2024 with final site completion anticipated for the second quarter of 2025.
• Awarded a $34 million contract for a temporary 86-person camp and a permanent 252-person camp to tie into and expand an existing facility in Western Australia. Manufacturing is expected to commence in the third quarter of 2024 with site works anticipated to be concluded in early 2025.
• Awarded numerous contracts throughout the US including: a $5 million contract for 18 units configured as a 2-storey office complex in Silverdale, Washington, a $3 million contract to supply 54 space rental units in Plaquemines Parish, Louisiana, a $3 million contract to design, supply, transport and install a transportation building comprising of 14 complexed units for Highline Public Schools in Burien, Washington, and a $2 million rental contract for 30 space rentals units for a data centre in Wyoming.

Canadian Utilities

• On May 8, 2024, Canadian Utilities announced its largest ever energy infrastructure project, the Yellowhead Mainline, with a projected investment of over $2 billion. The project is expected to build approximately 200 kilometres of high-pressure natural gas pipeline and related control and compression facilities that will run from Peers, Alberta, to the northeast Edmonton area and have the capability to deliver about 1,000 terajoules (or 1 billion cubic feet) per day of incremental natural gas. Subject to regulatory and company approvals, construction is expected to commence in 2026 and the pipeline is expected to be on-stream in the fourth quarter of 2027.
• On June 26, 2024, ATCO EnPower, in partnership with Shell Canada Limited, announced that a Final Investment Decision has been made to proceed with the first phase of the Atlas Carbon Storage Hub. The first phase of the project is expected to be operational in late 2028, anchored by CO2 volumes from Shell’s Polaris carbon capture project. Atlas represents the first step in ATCO EnPower’s work to create a full value chain for hydrogen development – from production and carbon abatement to transport and export. The facility will be located east of Edmonton and able to store emissions from the Alberta Industrial Heartland region.
• Incurred $322 million in capital expenditures in the second quarter of 2024, of which 95 per cent was invested in our regulated utilities in ATCO Energy Systems and ATCO Australia, and 5 per cent mainly in ATCO EnPower.

Corporate

• On July 11, 2024, ATCO declared a third quarter dividend of 48.98 cents per share or
  $1.96 per share on an annualized basis per Class I non-voting and Class II voting share.

For full second quarter results click here.

About ATCO

As a global enterprise ATCO Ltd. and its subsidiary and affiliate companies have approximately 20,000 employees and assets of $25 billion. ATCO is committed to future prosperity by working to meet the world’s essential energy, housing, security and transportation challenges. ATCO Structures designs, builds and delivers products to service the essential need for housing and shelter around the globe. ATCO Frontec provides operational support services to government, defence and commercial clients. ATCO Energy Systems delivers essential energy for an evolving world through its electricity and natural gas transmission and distribution, and international operations. ATCO EnPower creates sustainable energy solutions in the areas of renewables, energy storage, industrial water and clean fuels. ATCO Australia develops, builds, owns and operates energy and infrastructure assets. ATCOenergy and Rümi provide retail electricity and natural gas services, home maintenance services and professional home advice that bring exceptional comfort, peace of mind and freedom to homeowners and customers. ATCO also has investments in ports and transportation logistics, the processing and marketing of fly ash, retail food services and commercial real estate. More information can be found at www.ATCO.com.

Contact:

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

Source: ATCO Ltd.