2023 earnings attributable to Class I and Class II Shares reported in accordance with International Financial Reporting Standards (IFRS earnings) were
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 a
$13 million contract to supply a 296-person accommodation complex to be deployed to a gold and silver mine inWestern Canada . Delivery of the units is expected in the second quarter of 2024. - In the fourth quarter of 2023, ATCO Structures was awarded a
$12 million contract to manufacture, deliver and install 45 workforce housing units to BPX Energy operating sites inWest Texas . Manufacturing is scheduled to commence in the first quarter of 2024 with installation expected to be complete by the second quarter of 2024. - Awarded a
$12 million contract for the manufacture, transport, and installation of a 102-person accommodation camp for a mine inNew South Wales . Manufacturing commenced during the fourth quarter of 2023 and full handover and completion is anticipated in the second quarter of 2024.
- On
October 24, 2023 ,ATCO Frontec was awarded a contract to provide camp services toVictoria Gold for a 350‐bed camp in theYukon, Canada . The contract was mobilized as ofJanuary 1, 2024 for a 3‐year term.
Neltume Ports
- On
October 11, 2023 ,Vancouver Bulk Terminal , a joint venture between Neltume Ports and Nautilus International Holding Corporation, announced it is working with Solvay, a global leader in the soda ash market, on the development of Terminal 2, Berth 7 at thePort of Vancouver , inWashington State .
- Received the
Alberta Utilities Commission (AUC) decisions with respect to the parameters of the third generation of performance-based regulation and the future Generic Cost of Capital parameters, onOctober 4, 2023 andOctober 9, 2023 , respectively. We began operating under these new frameworks in 2024. The Alberta Court of Appeal issued a favourable decision in the second quarter of 2023 in connection with theFort McMurray (Wood Buffalo ) wildfire. This decision resulted in the AUC issuing its decision inDecember 2023 permittingATCO Electric to include the net book value of its electric distribution assets destroyed in the Wood Buffalo fire within rate base.- In
October 2023 , the South Australian Government announced an Early Contractor Involvement agreement withATCO Australia and our joint venture partner, BOC Linde, for the South Australian Hydrogen Jobs Plan project, a 250-MW Hydrogen production facility, a 200-MW Hydrogen-fuelled electricity generation facility and a Hydrogen storage facility. Activities under this agreement include developing a contract offer price, and negotiation of engineering, procurement, construction and operations and maintenance contracts for delivery and operations of the project. - Incurred
$394 million in capital expenditures in the fourth quarter of 2023, of which 91 per cent was invested in ATCO Energy Systems and 9 per cent mainly in ATCO EnPower.
Corporate
- On
January 11, 2024 , ATCO declared a first quarter dividend of48.98 cents per share or$1.96 per share on an annualized basis per Class I non-voting and Class II voting share.
FINANCIAL SUMMARY AND RECONCILIATION OF ADJUSTED EARNINGS
A financial summary of the consolidated subsidiaries of ATCO and a reconciliation of adjusted earnings to earnings attributable to Class I non-voting shares and Class II voting shares is provided below:
Three Months Ended | Year Ended December 31 | |||
($ millions except share data) | 2023 | 2022 | 2023 | 2022 |
Adjusted Earnings | 127 | 110 | 432 | 423 |
Impairment (charge) reversal (1) | (19) | 2 | (23) | 2 |
Unrealized gains (losses) on mark-to-market forward and swap commodity contracts (2) | 24 | (11) | 97 | (36) |
Rate-regulated activities (3) | (19) | (18) | (43) | 6 |
IT Common Matters decision (4) | (3) | (2) | (11) | (8) |
Madeira additional income taxes (5) | (15) | — | (15) | — |
Transition of managed IT services (6) | — | — | (5) | — |
AUC enforcement proceeding (7) | — | — | — | (14) |
Workplace COVID-19 vaccination standard (8) | — | — | — | (5) |
Gain on sale of ownership interest in a subsidiary company (9) | — | — | — | 3 |
Other | — | — | — | (1) |
Earnings attributable to Class I non-voting and Class II voting shares | 95 | 81 | 432 | 370 |
Weighted average shares outstanding (millions of shares) | 112.7 | 113.9 | 113.2 | 114.0 |
(1) | In the fourth quarter of 2023, the Company recognized an impairment of |
(2) | The Company's retail electricity and natural gas business in |
(3) | The Company records significant timing adjustments as a result of the differences between rate-regulated accounting and International Financial Reporting Standards with respect to additional revenues billed in the current year, revenues to be billed in future years, regulatory decisions received, and settlement of regulatory decisions and other items. |
(4) | Consistent with the treatment of the gain on sale in 2014 from the IT services business by the Company, financial impacts associated with the IT Common Matters decision are excluded from adjusted earnings. |
(5) | In the fourth quarter of 2023, ATCO Structures and Logistics recognized income taxes and interest of |
(6) | In the first quarter of 2023, the Company recognized legal and other costs of |
(7) | On |
(8) | In the first quarter of 2022, the Company incurred |
(9) | On |
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 year ended
TELECONFERENCE AND WEBCAST
ATCO will hold a live teleconference and webcast at
Management invites interested parties to listen via live webcast at: https://www.atco.com/en-ca/about-us/investors/events-presentations.html.
A replay of the teleconference will be available approximately two hours after the conclusion of the call until
As a global enterprise
Investor & Analyst Inquiries:
Senior Vice President, Finance,
Colin.Jackson@atco.com
(403) 808 2636
Media Inquiries:
Director, Corporate Communications
Kurt.Kadatz@atco.com
(587) 228 4571
Subscription Inquiries:
To receive
Other Financial and Non-GAAP Measures
This news release includes references to "adjusted earnings" which is a "total of segments measure" as that term is defined in National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure. The most directly comparable measure reported in accordance with International Financial Reporting Standards is "earnings attributable to Class I and Class II shares". For additional information, see "Financial Summary and Reconciliation of Adjusted Earnings" in this news release, and "Other Financial and Non-GAAP Measures" in the Company's Management's Discussion and Analysis for the year ended
Forward-Looking Information
Certain statements contained in this news release 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", "goals", "targets", "strategy", "future", and similar expressions. In particular, forward-looking information in this news release includes, but is not limited to, references to: the expected value, timing and term of contracts; the expected timing of commencement, completion or commercial operations of activities, contracts and projects; the expected hydrogen production, electricity generation and hydrogen storage capabilities of the facilities planned in connection with the South Australian Hydrogen Jobs Plan project; and the payment of dividends.
Although the Company believes that the expectations reflected in the forward-looking information are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct. Forward-looking information should not be unduly relied upon. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties, and other factors, which may cause actual results, levels of activity, and achievements to differ materially from those anticipated in such forward-looking information. The forward-looking information reflects the Company's beliefs and assumptions with respect to, among other things, the development and performance of technology and technological innovations; continuing collaboration with certain business partners, and regulatory and environmental groups; the performance of assets and equipment; the ability to meet current project schedules, and other assumptions inherent in management's expectations in respect of the forward-looking information identified herein.
The Company's actual results could differ materially from those anticipated in this forward-looking information as a result of, among other things, risks inherent in the performance of assets; capital efficiencies and cost savings; applicable laws, regulations and government policies; regulatory decisions; competitive factors in the industries in which the Company operates; prevailing market and economic conditions; credit risk; interest rate fluctuations; the availability and cost of labour, materials, services, and infrastructure; future demand for resources; the development and execution of projects; prices of electricity, natural gas, natural gas liquids, and renewable energy; the development and performance of technology and new energy efficient products, services, and programs including but not limited to the use of zero-emission and renewable fuels, carbon capture, and storage, electrification of equipment powered by zero-emission energy sources and utilization and availability of carbon offsets; the termination or breach of contracts by contract counterparties; the occurrence of unexpected events such as fires, extreme weather conditions, explosions, blow-outs, equipment failures, transportation incidents, and other accidents or similar events; global pandemics; geopolitical tensions and wars; and other risk factors, many of which are beyond the control of the Company. Due to the interdependencies and correlation of these factors, the impact of any one material assumption or risk on a forward-looking statement cannot be determined with certainty. Readers are cautioned that the foregoing lists are not exhaustive. For additional information about the principal risks that the Company faces, see "Business Risks and Risk Management" in the Company's Management's Discussion and Analysis for the year ended
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
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