ATCO Reports Second Quarter 2023 Earnings

ATCO Ltd. (ATCO or the Company) announced second quarter 2023 adjusted earnings of $87 million ($0.77 per share), $5 million ($0.04 per share) lower compared to $92 million ($0.81 per share) in the second quarter of 2022.

Second quarter earnings attributable to Class I and Class II Shares reported in accordance with International Financial Reporting Standards (IFRS earnings) were $79 million ($0.70 per share), $11 million ($0.09 per share) lower compared to $90 million ($0.79 per share) in the second quarter of 2022.

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

• Executed a contract for the sale and installation of a 42-unit modular hospital complex in Quebec. The complex was previously on a long-term rental contract, which concluded earlier in the year. Dismantling of the complex has commenced, and installation in the new location is scheduled to be completed in the fourth quarter of 2023.
• Reached substantial completion of the Bechtel Pluto Train II project. This included handover of all remaining accommodations and facilities for the stage four milestone and associated siteworks. The final handover was completed approximately four months ahead of the original project schedule.

ATCO Frontec

• Commenced work on two fire relief camps made available for displaced people. One of the fire relief camps is the Valemount Lodge in BC, which ATCO had previously operated for the Trans Mountain Expansion Project. The second fire relief camp is a 350-bed camp for Dene Tha’ First Nation.

Canadian Utilities

• Announced the executive appointment of Wayne Stensby as Chief Operating Officer of ATCO Energy Systems, the newly branded gas and electrical utility services business, which also oversees our interests in LUMA Energy.
• Announced the executive appointment of Bob Myles as Chief Operating Officer of ATCO EnPower, the newly branded non-regulated energy business, including renewables, clean fuels, and energy storage.
• Invested $332 million in capital expenditures in the second quarter of 2023, of which 86 per cent was invested in ATCO Energy Systems and 14 per cent mainly in ATCO EnPower. ⁽¹⁾
• The Barlow solar project achieved full commercial operations. Our other Calgary solar development project, Deerfoot, is expected to commence energization in the third quarter of 2023, with full commercial operations expected in the fourth quarter of 2023.
• Since acquiring the renewable energy portfolio in January 2023, the 232-MW of operating Forty Mile and Adelaide wind assets have contributed revenues of $46 million for the six months ended June 30, 2023. Uprating work continues for the Forty Mile wind assets with expected completion in the fourth quarter of 2023. This uprating is expected to increase Forty Mile Wind generation capacity from 202-MW to 225-MW.
• Despite significant wildfire activity within Alberta in the first half of 2023, Canadian Utilities’ businesses have been successful in limiting customer outages and avoiding any safety incidents related to these events. Wildfire activity in the province of Alberta has slowed significantly from its peak earlier in the second quarter and our teams continue to stay focused on restoration efforts. We do not expect to see any negative impact to earnings as a result of these events.
• Significant opportunities for growth continue to be expected in connection with the energy transition, including existing and new opportunities within both ATCO Energy Systems and ATCO EnPower. To support this potential growth, Canadian Utilities intends to explore various financing alternatives including the possibility of creating ATCO EnPower as a separate entity.

Corporate

• On July 13, 2023, ATCO declared a third quarter dividend of 47.56 cents per share or $1.90 per share on an annualized basis per Class I Non-Voting and Class II Voting Share.

(1)	ATCO Energy Systems and ATCO EnPower are referred to as Regulated Utilities and Energy Infrastructure, respectively, in the Company’s Management’s Discussion and Analysis for the six months ended June 30, 2023.

To view the full second quarter results, click here.

About ATCO

ATCO Ltd. and its subsidiary and affiliate companies have approximately 19,000 employees and assets of $25 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 & Sustainability – Colin.Jackson@atco.com – (403) 808-2636

Source: ATCO Ltd.