ATCO Reports First Quarter 2021 Earnings
CALGARY, AB, April 29, 2021 /CNW/ - ATCO Ltd. (TSX: ACO.X) (TSX: ACO.Y)
ATCO today announced first quarter 2021 adjusted earnings of $119 million, or $1.04 per share, $13 million or $0.11 per share higher compared to $106 million, or $0.93 per share, in the first quarter of 2020.
Higher adjusted earnings were mainly due to workforce housing sales and rental activity and higher space rental activity in ATCO Structures, as well as additional ATCO Frontec client work requests due to COVID-19 proactive and preventative safety measures. Higher earnings in Canadian Utilities were mainly due to Utilities' cost efficiencies and growth in the asset base, as well as earnings from ongoing transition work related to the long-term contract to operate Puerto Rico's electricity transmission and distribution system. Higher earnings were also due to demand for natural gas storage services and recovered business development costs in Energy Infrastructure.
Earnings attributable to Class I and Class II Shares were $83 million in 2021, $4 million lower compared to 2020. Earnings attributable to Class I and Class II Shares 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, significant 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.
- Awarded a $44 million contract for the supply of a 450-person camp for Pretium Exploration Inc.'s Brucejack operations in Northwest British Columbia. Detailed engineering work has commenced with manufacturing and site work expected to begin in the second quarter of 2021. Installation work is expected to be complete by the end of 2021.
- Completed installation of a 450-person camp that had been previously awarded on a $12 million rental contract for 31 months. The project will support the rebuild and expansion of the China Lake Military Base in Southern California. The military base was damaged by two major earthquakes in July 2019.
- Filed an application with the Alberta Utilities Commission to postpone ATCO's electricity and natural gas distribution utility rate increases for 2021 and collect the deferred amounts beginning in 2023. This application aligns with our long-standing practice of supporting the communities we have the privilege to serve. The current economic situation in Alberta, including hardships faced by customers due to the COVID-19 pandemic, is the rationale for the rate freeze.
- Declared a second quarter dividend of 44.83 cents per share or $1.79 per Class I Non-Voting and Class II Voting Share on an annualized basis.
This news release should be read in concert with the full disclosure documents. ATCO's consolidated financial statements and management's discussion and analysis for the quarter ended March 31, 2021 will be available on the ATCO website (www.ATCO.com), via SEDAR (www.sedar.com) or can be requested from the Company.
With approximately 6,200 employees and assets of $22 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 electricity operations); Energy Infrastructure (electricity generation, energy storage and industrial water solutions); Retail Energy (electricity and natural gas retail sales); Transportation (ports and transportation logistics); and Commercial Real Estate. More information can be found at www.ATCO.com.
Investor & Analyst Inquiries:
Director, Investor Relations & External Disclosure
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Certain statements contained in this news release may constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", and similar expressions.
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information.
The Company's actual results could differ materially from those anticipated in this forward-looking information as a result of regulatory decisions, competitive factors in the industries in which the Company operates, prevailing economic conditions (including as may be affected by the COVID-19 pandemic), and other factors, many of which are beyond the control of the Company.
The Company believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.
Any forward-looking information contained in this news release represents the Company's expectations as of the date hereof, and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.
SOURCE ATCO Ltd.