ATCO Posts Financial Results for 1Q
ATCO reported earnings of $89.8 million ($1.54 per share) for the first three months of 2010, compared to $94.6 million ($1.64 per share) for the same three months in 2009.
ATCO reported "Adjusted Earnings" (1) for the first three months of 2010 of $91.9 million ($1.58 per share), compared to $96.1 million ($1.66 per share) for the same three months in 2009.
Earnings and Adjusted Earnings in the first quarter of 2010 reflected a $3.0 million premium on the redemption of all of ATCO's $150 million of outstanding 5.75% Cumulative Redeemable Preferred Shares. This one-time charge to earnings will result in positive earnings impact for the remainder of the year as future dividends on preferred shares are eliminated. The net benefit to ATCO's 2010 earnings because of this redemption is expected to be approximately $3.9 million.
After removing the impact of the preferred share redemption premium, Adjusted Earnings in the first quarter of 2010 are consistent with the first quarter of 2009. This reflects continued strength from the Company's Utilities Segment due to higher investment in rate base, partially offset by lower earnings in the Company's Energy Segment primarily due to lower spark spreads in the Alberta and United Kingdom electricity markets.
- On April 9, ATCO Power announced that its new 86 megawatt Karratha (in Western Australia) generating station went into full commercial operation ahead of schedule, only 16 months after the environmentally progressive project was first announced.
- On March 9, ATCO Structures & Logistics announced the acquisition of the assets of Woodgreen Homes & Trailer Sales in Timmins, Ontario.
- On March 26, ATCO Gas celebrated the official opening of a new environmentally friendly operations center. Located in Edmonton, the operations center is the largest commercial building in Canada to make use of geothermal heating, ventilating and cooling technology fueled by natural gas.
- On March 15, ATCO Midstream and SaskEnergy Inc. announced the completion of a joint expansion project at the Kisbey Gas Plant in southeastern Saskatchewan that will benefit both the environment and Saskatchewan's economy and will triple the capacity of the Kisbey Gas Plant to five million cubic feet of gas per day.
- ATCO Gas received a decision on April 20 from the Alberta Utilities Commission (AUC) approving, on an interim refundable basis, the partial recovery of amounts previously paid to customers in regard to the Carbon storage facility. This decision increased ATCO Gas' earnings in the first quarter of 2010 by $11.3 million (ATCO earnings of $5.9 million). This increase was partially offset by an Alberta Court of Appeal decision received on April 23 in regard to amounts previously recovered from customers for historical transportation imbalances that returned the matter to the AUC for consideration. Pending final resolution of this matter, the timing of which is uncertain, ATCO Gas recorded a contingent liability in the first quarter of 2010 which reduced its earnings by $8.4 million (ATCO earnings of $4.4 million).