CALGARY, AB, July 29, 2021 /CNW/ - ATCO Ltd. (TSX:
ACO.X) (TSX: ACO.Y)
ATCO today announced second quarter 2021 adjusted earnings of
$80 million ($0.70 per share), which were $10 million ($0.09
per share) higher compared to $70 million ($0.61 per share) in the second quarter of
2020.
Higher adjusted earnings in the second quarter of 2021 were
mainly due to contributions from Canadian Utilities' International
Electricity Operations segment related to ongoing transition work
and commencement on June 1, 2021
under the Supplemental Agreement to LUMA Energy's 15-year contract
to modernize and operate Puerto
Rico's electricity transmission and distribution system.
Higher earnings were also due to a return to more stable levels of
inflation in Australia, which
positively impacted earnings in Canadian Utilities' International
Natural Gas Distribution segment.
IFRS earnings attributable to Class I and Class II Shares were
$12 million in the second quarter of
2021, $33 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, 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
with the Government of British
Columbia's supportive housing program in Vernon, BC for a four-story, 61-unit
building.
- Won a supply contract with a mining client in Nunavut for a 276-bed accommodation complex.
The project consists of deployment of fleet product which has been
repurposed to withstand the environment in the region.
ATCO Frontec
- UQSUQ Corporation, a joint venture between ATCO Frontec and
Nunavut Petroleum Corporation, successfully won its bid with the
Government of Nunavut to continue
operating and maintaining the Iqaluit bulk fuel storage facility and
pipeline distribution system. The new contract covers a 10-year
period, plus a 5-year extension option, and commences on
December 1, 2021.
Neltume Ports
- Held a grand opening on June 2,
2021 for the AutoMobile International Terminal, a 50/50
joint venture partnership with Terminal Zarate in Mobile, Alabama. The terminal is now in
service and primarily supports the import and export requirements
of the automotive market in the United
States.
Canadian Utilities
- Received a decision from the Alberta Utilities Commission on
June 15, 2021 approving the
acquisition of the Pioneer Pipeline from Tidewater Midstream &
Infrastructure and its partner TransAlta Corporation for the
purchase price and associated integration costs of $265 million, and the corresponding revenue
requirement for 2021 to be included in Natural Gas Transmission's
rates. As part of the transaction, Natural Gas Transmission will
transfer approximately 30-km of the pipeline to Nova Gas
Transmission Ltd. for $65 million
upon approval from the Canada Energy Regulator.
- LUMA Energy commenced operations on June
1, 2021 under the Supplemental Agreement to its 15-year
contract to modernize and operate Puerto
Rico's electricity transmission and distribution system
after successful completion of the one-year transition period.
- Launched Rümi, a solutions provider for home and business
owners, offering lifestyle products, home maintenance services and
professional advice for homeowners. Rümi currently offers
approximately 60 services in Edmonton and Calgary, and more than 750 products for
purchase online.
- Announced a partnership with Suncor Energy in May 2021, to collaborate on early stage design
and engineering of a potential clean hydrogen project near
Fort Saskatchewan, Alberta. The
project will produce more than 300,000 tons per year of clean
hydrogen, while capturing greater than 90 per cent of the carbon
emissions, reducing Alberta's
carbon dioxide emissions by more than two million tons per
year.
- Received notification of $29
million AUD in conditional funding from the Australian
Renewable Energy Agency (ARENA) to kick start the production of
hydrogen through a large scale project at Canadian Utilities'
proposed Clean Energy Innovation Park in Western Australia.
Corporate
- Declared a third 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
June 30, 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:
Colin
Jackson
Senior Vice President, Finance, Treasury, Risk &
Sustainability
Colin.Jackson@atco.com
(403) 808 2636
Media Inquiries:
Kurt Kadatz
Senior Manager, Corporate Communications
Kurt.Kadatz@atco.com
(587) 228 4571
Forward-Looking Information:
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.