ATCO has demonstrated reliability through its ability to generate strong earnings growth, even in challenging market conditions. In addition, the company has maintained financial strength through a strong balance sheet, which positions it well to realize on future growth opportunities. These three pillars of reliability, financial strength, and growth provide the foundation for delivering continuing value for share owners over both the near and long term.
Reliability with Opportunity for Premium Returns
ATCO’s diversified business platform has delivered notable returns and earnings growth over many years. This high degree of reliability has enabled ATCO to consistently increase dividends every year since 1993.
In 2010, approximately 65 per cent of adjusted earnings were generated from lower risk regulated utilities and operations that are supported by long term contracts. The remaining 35 per cent of adjusted earnings were generated from non-contracted power, energy services and other operations, of which 15 per cent has direct exposure to commodity price fluctuations.
Financial Strength
ATCO has a strong balance sheet, which together with its diversified low risk business platform is reflected in its 'A' credit ratings. ATCO is committed to preserving its high investment grade ratings and will maintain an appropriate capital structure and an ample amount of liquidity to support the major expansion program currently underway.
Growth
Over the next three years, ATCO has in excess of $5 billion of growth projects in its regulated companies. This major growth program will increase the size of the company by approximately 50 per cent and will deliver significant long-term value for share owners.
Approximately $1.6 billion of these growth projects is associated with the Eastern Alberta Transmission Line Project. On October 21, 2011, the regulatory process for this project was suspended pending a government review of Critical Transmission Infrastructure projects in the province. It is not currently known what, if any, changes will be made to the government’s approach or how ATCO’s project could be affected.
On July 29, 2011, ATCO completed the approximate AUD $1.0 billion acquisition of Western Australia Gas Networks (subsequently renamed to ATCO Gas Australia), a natural gas distribution utility that serves the City of Perth and surrounding areas. The acquisition complements the company's existing portfolio of energy infrastructure assets in Australia and provides a platform for future growth in one of the fastest growing economies in the world.
About ATCO
ATCO is a diversified group of companies principally controlled by Sentgraf, a Southern Family holding company. With more than 8,800 employees and approximately $12 billion in assets, ATCO Group delivers service excellence and innovative business solutions worldwide with leading companies engaged in structures & logistics (manufacturing, logistics and noise abatement), utilities (pipelines, natural gas and electricity transmission and distribution), energy (power generation, natural gas gathering, processing, storage and liquids extraction) and technologies (business systems solutions).