エドガーで原本を確認する
| Algonquin Power & Utilities Corp. | ||
| Exhibit | Description | ||||
| 99.1 | |||||
| 99.2 | |||||
| 99.3 | |||||
| 99.4 | |||||
| 99.5 | |||||
| 99.6 | |||||
| ALGONQUIN POWER & UTILITIES CORP. | |||||
| (registrant) | |||||
| Date: August 10, 2023 | By: /s/ Darren Myers |
||||
| Name: Darren Myers | |||||
| Title: Chief Financial Officer | |||||
| Three months ended | Six months ended | ||||||||||||||||||||||
| (thousands of U.S. dollars, except per share amounts) | June 30 | June 30 | |||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Regulated electricity distribution | $ | 326,833 | $ | 295,558 | $ | 642,435 | $ | 576,252 | |||||||||||||||
| Regulated natural gas distribution | 109,539 | 121,911 | 380,677 | 385,345 | |||||||||||||||||||
| Regulated water reclamation and distribution | 95,861 | 89,626 | 183,282 | 168,257 | |||||||||||||||||||
| Non-regulated energy sales | 71,694 | 92,141 | 150,410 | 177,901 | |||||||||||||||||||
| Other revenue | 23,944 | 20,149 | 49,694 | 44,867 | |||||||||||||||||||
| 627,871 | 619,385 | 1,406,498 | 1,352,622 | ||||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Operating expenses | 241,482 | 206,330 | 461,769 | 418,332 | |||||||||||||||||||
| Regulated electricity purchased | 98,337 | 104,125 | 223,917 | 203,308 | |||||||||||||||||||
| Regulated natural gas purchased | 36,180 | 51,802 | 173,881 | 184,368 | |||||||||||||||||||
| Regulated water purchased | 3,857 | 3,329 | 7,726 | 6,152 | |||||||||||||||||||
| Non-regulated energy purchased | 3,782 | 9,646 | 11,588 | 22,585 | |||||||||||||||||||
| Administrative expenses | 25,692 | 20,107 | 43,525 | 37,559 | |||||||||||||||||||
| Depreciation and amortization | 118,448 | 112,547 | 240,089 | 232,511 | |||||||||||||||||||
| Loss on foreign exchange | 6,379 | 4,464 | 7,815 | 4,726 | |||||||||||||||||||
| 534,157 | 512,350 | 1,170,310 | 1,109,541 | ||||||||||||||||||||
| Gain on sale of renewable assets | — | — | — | 1,200 | |||||||||||||||||||
| Operating income | 93,714 | 107,035 | 236,188 | 244,281 | |||||||||||||||||||
| Interest expense (note 7) | (89,663) | (64,573) | (171,581) | (122,516) | |||||||||||||||||||
Loss from long-term investments (note 6) |
(277,696) | (113,380) | (57,684) | (124,069) | |||||||||||||||||||
Other net losses (note 16) |
(40,367) | (8,652) | (43,829) | (13,382) | |||||||||||||||||||
Pension and other post-employment non-service costs (note 8) |
(5,306) | (2,258) | (10,267) | (4,836) | |||||||||||||||||||
Gain (loss) on derivative financial instruments (note 21(b)(iv)) |
1,039 | (3,313) | 3,205 | (2,569) | |||||||||||||||||||
| Loss before income taxes | (318,279) | (85,141) | (43,968) | (23,091) | |||||||||||||||||||
Income tax recovery (note 15) |
|||||||||||||||||||||||
| Current | (6,300) | (3,409) | (12,800) | (9,713) | |||||||||||||||||||
| Deferred | 62,258 | 26,228 | 44,057 | 23,080 | |||||||||||||||||||
| 55,958 | 22,819 | 31,257 | 13,367 | ||||||||||||||||||||
| Net loss | (262,321) | (62,322) | (12,711) | (9,724) | |||||||||||||||||||
Net effect of non-controlling interests (note 14) |
|||||||||||||||||||||||
| Non-controlling interests | 15,439 | 32,021 | 42,018 | 72,963 | |||||||||||||||||||
| Non-controlling interests held by related party | (6,349) | (3,086) | (12,399) | (5,661) | |||||||||||||||||||
| $ | 9,090 | $ | 28,935 | $ | 29,619 | $ | 67,302 | ||||||||||||||||
| Net earnings (loss) attributable to shareholders of Algonquin Power & Utilities Corp. | $ | (253,231) | $ | (33,387) | $ | 16,908 | $ | 57,578 | |||||||||||||||
Preferred shares, Series A and preferred shares, Series D dividend (note 12) |
2,080 | 2,220 | 4,172 | 4,440 | |||||||||||||||||||
| Net earnings (loss) attributable to common shareholders of Algonquin Power & Utilities Corp. | $ | (255,311) | $ | (35,607) | $ | 12,736 | $ | 53,138 | |||||||||||||||
Basic and diluted net earnings (loss) per share (note 17) |
$ | (0.37) | $ | (0.05) | $ | 0.02 | $ | 0.08 | |||||||||||||||
| Three months ended | Six months ended | ||||||||||||||||||||||
| (thousands of U.S. dollars) | June 30 | June 30 | |||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Net loss | $ | (262,321) | $ | (62,322) | $ | (12,711) | $ | (9,724) | |||||||||||||||
| Other comprehensive income (loss) (“OCI”): | |||||||||||||||||||||||
Foreign currency translation adjustment, net of tax recovery of $3,418 and $3,038 (2022 - tax expense of $1,037 and tax recovery of $2,273), respectively (notes 21(b)(iii) and 21(b)(iv)) |
130 | (48,440) | 15,555 | (40,595) | |||||||||||||||||||
Change in fair value of cash flow hedges, net of tax expense of $3,737 and tax recovery of $178 (2022 - tax recovery of $7,596 and $29,894), respectively (note 21(b)(ii)) |
36,421 | (12,879) | 54,286 | (71,765) | |||||||||||||||||||
Change in pension and other post-employment benefits, net of tax recovery of $281 and $445 (2022 - tax recovery of $32 and $30), respectively |
(823) | (93) | (1,303) | (86) | |||||||||||||||||||
| OCI, net of tax | 35,728 | (61,412) | 68,538 | (112,446) | |||||||||||||||||||
| Comprehensive income (loss) | (226,593) | (123,734) | 55,827 | (122,170) | |||||||||||||||||||
| Comprehensive loss attributable to the non-controlling interests | (8,693) | (30,375) | (29,407) | (68,055) | |||||||||||||||||||
| Comprehensive income (loss) attributable to shareholders of Algonquin Power & Utilities Corp. | $ | (217,900) | $ | (93,359) | $ | 85,234 | $ | (54,115) | |||||||||||||||
| (thousands of U.S. dollars) | |||||||||||
| June 30, | December 31, | ||||||||||
| 2023 | 2022 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 100,258 | $ | 57,623 | |||||||
Trade and other receivables, net (note 4) |
492,844 | 528,057 | |||||||||
| Fuel and natural gas in storage | 75,693 | 95,350 | |||||||||
| Supplies and consumables inventory | 152,118 | 129,571 | |||||||||
Regulatory assets (note 5) |
136,159 | 190,393 | |||||||||
| Prepaid expenses | 60,738 | 58,653 | |||||||||
Derivative instruments (note 21) |
11,228 | 12,270 | |||||||||
| Other assets | 19,958 | 22,564 | |||||||||
| 1,048,996 | 1,094,481 | ||||||||||
| Property, plant and equipment, net | 12,336,931 | 11,944,885 | |||||||||
| Intangible assets, net | 97,080 | 96,683 | |||||||||
| Goodwill | 1,330,987 | 1,320,579 | |||||||||
Regulatory assets (note 5) |
1,125,156 | 1,081,108 | |||||||||
Long-term investments (note 6) |
|||||||||||
| Investments carried at fair value | 1,213,718 | 1,344,207 | |||||||||
| Other long-term investments | 507,045 | 462,325 | |||||||||
Derivative instruments (note 21) |
66,333 | 71,630 | |||||||||
| Deferred income taxes | 131,622 | 84,416 | |||||||||
| Other assets | 110,845 | 127,299 | |||||||||
| $ | 17,968,713 | $ | 17,627,613 | ||||||||
| (thousands of U.S. dollars) | |||||||||||
| June 30, | December 31, | ||||||||||
| 2023 | 2022 | ||||||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 194,853 | $ | 186,080 | |||||||
| Accrued liabilities | 467,235 | 555,792 | |||||||||
Dividends payable (note 12) |
75,223 | 125,655 | |||||||||
Regulatory liabilities (note 5) |
74,867 | 69,865 | |||||||||
Long-term debt (note 7) |
513,803 | 423,274 | |||||||||
Other long-term liabilities (note 9) |
119,495 | 134,212 | |||||||||
Derivative instruments (note 21) |
15,687 | 32,491 | |||||||||
| Other liabilities | 10,317 | 7,091 | |||||||||
| 1,471,480 | 1,534,460 | ||||||||||
Long-term debt (note 7) |
7,569,344 | 7,088,743 | |||||||||
Regulatory liabilities (note 5) |
551,708 | 558,317 | |||||||||
| Deferred income taxes | 580,211 | 565,639 | |||||||||
Derivative instruments (note 21) |
86,925 | 137,830 | |||||||||
| Pension and other post-employment benefits obligation | 124,478 | 125,579 | |||||||||
Other long-term liabilities (note 9) |
430,379 | 461,230 | |||||||||
| 9,343,045 | 8,937,338 | ||||||||||
Redeemable non-controlling interests (note 14) |
|||||||||||
Redeemable non-controlling interest, held by related party (note 13(b)) |
307,955 | 307,856 | |||||||||
| Redeemable non-controlling interests | 10,767 | 11,520 | |||||||||
| 318,722 | 319,376 | ||||||||||
| Equity: | |||||||||||
| Preferred shares | 184,299 | 184,299 | |||||||||
Common shares (note 10(a)) |
6,224,770 | 6,183,943 | |||||||||
| Additional paid-in capital | 4,279 | 9,413 | |||||||||
| Deficit | (1,136,208) | (997,945) | |||||||||
Accumulated other comprehensive loss (“AOCI”) (note 11) |
(91,737) | (160,063) | |||||||||
| Total equity attributable to shareholders of Algonquin Power & Utilities Corp. | 5,185,403 | 5,219,647 | |||||||||
| Non-controlling interests | |||||||||||
| Non-controlling interests - tax equity partnership units | 1,261,067 | 1,225,608 | |||||||||
| Other non-controlling interests | 337,825 | 333,362 | |||||||||
Non-controlling interest, held by related party (note 13(c)) |
51,171 | 57,822 | |||||||||
| 1,650,063 | 1,616,792 | ||||||||||
| Total equity | 6,835,466 | 6,836,439 | |||||||||
Commitments and contingencies (note 19) |
|||||||||||
| Subsequent events (notes 7(b), 9, 13(a)) | |||||||||||
| $ | 17,968,713 | $ | 17,627,613 | ||||||||
|
(thousands of U.S. dollars)
For the three months ended June 30, 2023
|
|||||||||||||||||||||||||||||||||||||||||
| Algonquin Power & Utilities Corp. Shareholders | |||||||||||||||||||||||||||||||||||||||||
| Common shares |
Preferred shares |
Additional paid-in capital |
Deficit | AOCI | Non- controlling interests |
Total | |||||||||||||||||||||||||||||||||||
| Balance, March 31, 2023 | $ | 6,223,301 | $ | 184,299 | $ | 776 | $ | (805,515) | $ | (127,068) | $ | 1,580,027 | $ | 7,055,820 | |||||||||||||||||||||||||||
| Net loss | — | — | — | (253,231) | — | (9,090) | (262,321) | ||||||||||||||||||||||||||||||||||
| Effect of redeemable non-controlling interests not included in equity (note 14) | — | — | — | — | — | (6,018) | (6,018) | ||||||||||||||||||||||||||||||||||
| OCI | — | — | — | — | 35,331 | 397 | 35,728 | ||||||||||||||||||||||||||||||||||
| Dividends declared and distributions to non-controlling interests | — | — | — | (77,449) | — | (14,104) | (91,553) | ||||||||||||||||||||||||||||||||||
| Common shares issued upon conversion of convertible debentures | 11 | — | — | — | — | — | 11 | ||||||||||||||||||||||||||||||||||
| Contributions received from non-controlling interests, net of cost (note 3(b)) | — | — | — | — | — | 98,851 | 98,851 | ||||||||||||||||||||||||||||||||||
| Common shares issued under employee share purchase plan | 1,405 | — | — | — | — | — | 1,405 | ||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | 3,602 | — | — | — | 3,602 | ||||||||||||||||||||||||||||||||||
| Common shares issued pursuant to share-based awards | 53 | — | (99) | (13) | — | — | (59) | ||||||||||||||||||||||||||||||||||
| Balance, June 30, 2023 | $ | 6,224,770 | $ | 184,299 | $ | 4,279 | $ | (1,136,208) | $ | (91,737) | $ | 1,650,063 | $ | 6,835,466 | |||||||||||||||||||||||||||
|
(thousands of U.S. dollars)
For the three months ended June 30, 2022
|
|||||||||||||||||||||||||||||||||||||||||
| Algonquin Power & Utilities Corp. Shareholders | |||||||||||||||||||||||||||||||||||||||||
| Common shares |
Preferred shares |
Additional paid-in capital |
Deficit | AOCI | Non- controlling interests |
Total | |||||||||||||||||||||||||||||||||||
| Balance, March 31, 2022 | $ | 6,057,249 | $ | 184,299 | $ | 1,158 | $ | (315,879) | $ | (123,398) | $ | 1,471,378 | $ | 7,274,807 | |||||||||||||||||||||||||||
| Net loss | — | — | — | (33,387) | — | (28,935) | (62,322) | ||||||||||||||||||||||||||||||||||
| Redeemable non-controlling interests not included in equity (note 14) | — | — | — | — | — | (1,529) | (1,529) | ||||||||||||||||||||||||||||||||||
| OCI | — | — | — | — | (59,972) | (1,440) | (61,412) | ||||||||||||||||||||||||||||||||||
| Dividends declared and distributions to non-controlling interests | — | — | — | (103,616) | — | (19,230) | (122,846) | ||||||||||||||||||||||||||||||||||
| Dividends and issuance of shares under dividend reinvestment plan | 21,239 | — | — | (21,239) | — | — | — | ||||||||||||||||||||||||||||||||||
| Contributions received from non-controlling interests | — | — | — | — | — | 2,478 | 2,478 | ||||||||||||||||||||||||||||||||||
| Issuance of common shares under employee share purchase plan | 1,149 | — | — | — | — | — | 1,149 | ||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | 4,042 | — | — | — | 4,042 | ||||||||||||||||||||||||||||||||||
| Common shares issued pursuant to share-based awards | 2,874 | — | (4,939) | (1,235) | — | — | (3,300) | ||||||||||||||||||||||||||||||||||
| Balance, June 30, 2022 | $ | 6,082,511 | $ | 184,299 | $ | 261 | $ | (475,356) | $ | (183,370) | $ | 1,422,722 | $ | 7,031,067 | |||||||||||||||||||||||||||
|
(thousands of U.S. dollars)
For the six months ended June 30, 2023
|
|||||||||||||||||||||||||||||||||||||||||
| Algonquin Power & Utilities Corp. Shareholders | |||||||||||||||||||||||||||||||||||||||||
| Common shares |
Preferred shares |
Additional paid-in capital |
Deficit | AOCI | Non- controlling interests |
Total | |||||||||||||||||||||||||||||||||||
| Balance, December 31, 2022 | $ | 6,183,943 | $ | 184,299 | $ | 9,413 | $ | (997,945) | $ | (160,063) | $ | 1,616,792 | $ | 6,836,439 | |||||||||||||||||||||||||||
| Net earnings (loss) | — | — | — | 16,908 | — | (29,619) | (12,711) | ||||||||||||||||||||||||||||||||||
| Effect of redeemable non-controlling interests not included in equity (note 14) | — | — | — | — | — | (11,737) | (11,737) | ||||||||||||||||||||||||||||||||||
| OCI | — | — | — | — | 68,326 | 212 | 68,538 | ||||||||||||||||||||||||||||||||||
| Dividends declared and distributions to non-controlling interests | — | — | — | (124,451) | — | (33,518) | (157,969) | ||||||||||||||||||||||||||||||||||
| Dividends and issuance of shares under dividend reinvestment plan | 30,482 | — | — | (30,482) | — | — | — | ||||||||||||||||||||||||||||||||||
| Contributions received from non-controlling interests, net of cost (note 3(b)) | — | — | — | — | — | 107,933 | 107,933 | ||||||||||||||||||||||||||||||||||
| Common shares issued upon conversion of convertible debentures | 11 | — | — | — | — | — | 11 | ||||||||||||||||||||||||||||||||||
| Common shares issued under employee share purchase plan | 3,113 | — | — | — | — | — | 3,113 | ||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | 4,695 | — | — | — | 4,695 | ||||||||||||||||||||||||||||||||||
| Common shares issued pursuant to share-based awards | 7,221 | — | (9,829) | (238) | — | — | (2,846) | ||||||||||||||||||||||||||||||||||
| Balance, June 30, 2023 | $ | 6,224,770 | $ | 184,299 | $ | 4,279 | $ | (1,136,208) | $ | (91,737) | $ | 1,650,063 | $ | 6,835,466 | |||||||||||||||||||||||||||
|
(thousands of U.S. dollars)
For the six months ended June 30, 2022
|
|||||||||||||||||||||||||||||||||||||||||
| Algonquin Power & Utilities Corp. Shareholders | |||||||||||||||||||||||||||||||||||||||||
| Common shares |
Preferred shares |
Additional paid-in capital |
Deficit | AOCI | Non- controlling interests |
Total | |||||||||||||||||||||||||||||||||||
| Balance, December 31, 2021 | $ | 6,032,792 | $ | 184,299 | $ | 2,007 | $ | (288,424) | $ | (71,677) | $ | 1,523,082 | $ | 7,382,079 | |||||||||||||||||||||||||||
| Net earnings (loss) | — | — | 57,578 | — | (67,302) | (9,724) | |||||||||||||||||||||||||||||||||||
| Redeemable non-controlling interests not included in equity (note 14) | — | — | — | — | — | (2,725) | (2,725) | ||||||||||||||||||||||||||||||||||
| OCI | — | — | — | — | (111,693) | (753) | (112,446) | ||||||||||||||||||||||||||||||||||
| Dividends declared and distributions to non-controlling interests | — | — | — | (199,870) | — | (35,788) | (235,658) | ||||||||||||||||||||||||||||||||||
| Dividends and issuance of shares under dividend reinvestment plan | 42,779 | — | — | (42,779) | — | — | — | ||||||||||||||||||||||||||||||||||
| Contributions received from non-controlling interests, net of cost | — | — | — | — | — | 6,208 | 6,208 | ||||||||||||||||||||||||||||||||||
| Common shares issued upon conversion of convertible debentures | 6 | — | — | — | — | — | 6 | ||||||||||||||||||||||||||||||||||
| Issuance of common shares under employee share purchase plan | 2,455 | — | — | — | — | — | 2,455 | ||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | 5,664 | — | — | — | 5,664 | ||||||||||||||||||||||||||||||||||
| Common shares issued pursuant to share-based awards |
4,479 | — | (7,410) | (1,861) | — | — | (4,792) | ||||||||||||||||||||||||||||||||||
| Balance, June 30, 2022 | $ | 6,082,511 | $ | 184,299 | $ | 261 | $ | (475,356) | $ | (183,370) | $ | 1,422,722 | $ | 7,031,067 | |||||||||||||||||||||||||||
| (thousands of U.S. dollars) | Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Cash provided by (used in): | |||||||||||||||||||||||
| Operating activities | |||||||||||||||||||||||
| Net loss | $ | (262,321) | $ | (62,322) | $ | (12,711) | $ | (9,724) | |||||||||||||||
| Adjustments and items not affecting cash: | |||||||||||||||||||||||
| Depreciation and amortization | 118,448 | 112,547 | 240,089 | 232,511 | |||||||||||||||||||
| Deferred taxes | (62,258) | (26,228) | (44,057) | (23,080) | |||||||||||||||||||
| Initial value and unrealized gain on derivative financial instruments | (4,882) | (334) | (9,851) | (402) | |||||||||||||||||||
| Share-based compensation | 3,199 | 3,860 | 3,895 | 3,495 | |||||||||||||||||||
| Cost of equity funds used for construction purposes | (568) | (458) | (1,226) | (967) | |||||||||||||||||||
| Change in value of investments carried at fair value | 311,410 | 143,522 | 132,026 | 184,029 | |||||||||||||||||||
| Pension and post-employment expense in excess of (lower than) contributions | 2,176 | (823) | 119 | (6,436) | |||||||||||||||||||
| Distributions received from equity investments, net of income | 5,588 | 1,282 | 3,554 | 3,384 | |||||||||||||||||||
| Other | 38,232 | 931 | 36,195 | 3,536 | |||||||||||||||||||
Net change in non-cash operating items (note 20) |
112,380 | (36,640) | (53,356) | (84,788) | |||||||||||||||||||
| 261,404 | 135,337 | 294,677 | 301,558 | ||||||||||||||||||||
| Financing activities | |||||||||||||||||||||||
| Increase in long-term debt | 224,664 | 394,008 | 654,648 | 2,345,013 | |||||||||||||||||||
| Repayments of long-term debt | (194,403) | (220,424) | (398,179) | (897,109) | |||||||||||||||||||
| Net change in commercial paper | (1,187) | 165,000 | 91,613 | (173,700) | |||||||||||||||||||
| Issuance of common shares, net of costs | 1,405 | 1,149 | 3,113 | 2,455 | |||||||||||||||||||
| Cash dividends on common shares | (75,493) | (94,177) | (171,386) | (187,558) | |||||||||||||||||||
| Dividends on preferred shares | (2,080) | (2,220) | (4,172) | (4,440) | |||||||||||||||||||
| Contributions from non-controlling interests and redeemable non-controlling interests (note 3) | 98,955 | — | 98,955 | — | |||||||||||||||||||
| Production-based cash contributions from non-controlling interest | — | 2,478 | 9,082 | 6,208 | |||||||||||||||||||
Distributions to non-controlling interests, related party (note 14) |
(244) | (8,354) | (12,300) | (18,360) | |||||||||||||||||||
| Distributions to non-controlling interests | (20,746) | (16,760) | (33,084) | (25,109) | |||||||||||||||||||
| Payments upon settlement of derivatives | — | — | — | (26,254) | |||||||||||||||||||
| Shares surrendered to fund withholding taxes on exercised share options | — | (3,494) | (568) | (4,120) | |||||||||||||||||||
| Increase in other long-term liabilities | 6,695 | 2,069 | 11,125 | 7,268 | |||||||||||||||||||
| Decrease in other long-term liabilities | (255) | (41,339) | (20,329) | (42,573) | |||||||||||||||||||
| 37,311 | 177,936 | 228,518 | 981,721 | ||||||||||||||||||||
| Investing activities | |||||||||||||||||||||||
| Additions to property, plant and equipment and intangible assets | (245,209) | (247,538) | (414,958) | (575,237) | |||||||||||||||||||
| Increase in long-term investments | (41,774) | (49,681) | (89,379) | (96,938) | |||||||||||||||||||
| Acquisitions of operating entities | — | (86) | — | (632,797) | |||||||||||||||||||
| Increase in other assets | (130) | (10,340) | (1,980) | (12,804) | |||||||||||||||||||
| Receipt of principal on development loans receivable | — | 201 | — | 323 | |||||||||||||||||||
| Decrease in long-term investments | 11,749 | 517 | 11,749 | 2,920 | |||||||||||||||||||
| (275,364) | (306,927) | (494,568) | (1,314,533) | ||||||||||||||||||||
| Effect of exchange rate differences on cash and restricted cash | 369 | (2,408) | 872 | (1,846) | |||||||||||||||||||
| Increase (decrease) in cash, cash equivalents and restricted cash | 23,720 | 3,938 | 29,499 | (33,100) | |||||||||||||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 106,964 | 124,351 | 101,185 | 161,389 | |||||||||||||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 130,684 | $ | 128,289 | $ | 130,684 | $ | 128,289 | |||||||||||||||
| Algonquin Power & Utilities Corp. Unaudited Interim Consolidated Statements of Cash Flows (continued) | |||||||||||||||||||||||
| (thousands of U.S. dollars) | Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Supplemental disclosure of cash flow information: | |||||||||||||||||||||||
| Cash paid during the period for interest expense | $ | 75,489 | $ | 52,268 | $ | 178,201 | $ | 113,874 | |||||||||||||||
| Cash paid during the period for income taxes | $ | 2,097 | $ | 5,147 | $ | 4,138 | $ | 6,357 | |||||||||||||||
| Cash received during the period for distributions from equity investments | $ | 28,330 | $ | 30,762 | $ | 56,611 | $ | 61,554 | |||||||||||||||
| Non-cash financing and investing activities: | |||||||||||||||||||||||
| Property, plant and equipment acquisitions in accruals | $ | 145,594 | $ | 127,525 | $ | 145,594 | $ | 127,525 | |||||||||||||||
| Issuance of common shares under dividend reinvestment plan and share-based compensation plans | $ | 1,458 | $ | 25,262 | $ | 40,816 | $ | 49,713 | |||||||||||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Deerfield II | |||||
| Working capital | $ | (10,709) | |||
| Property, plant and equipment | 194,419 | ||||
| Long-term debt | (157,935) | ||||
| Asset retirement obligation | (1,030) | ||||
| Deferred tax liability | (1,603) | ||||
| Total net assets acquired | 23,142 | ||||
| Cash and cash equivalents | 1,662 | ||||
| Net assets acquired, net of cash and cash equivalents | $ | 21,480 | |||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Utility | State or country | Regulatory proceeding type | Details | ||||||||
| CalPeco Electric System | California | General rate review | On April 27, 2023, the California Public Utilities Commission (“CPUC”) issued a final order approving a revenue increase of $26,979. New rates became effective in June 2023 retroactive to January 2022. The retroactive impact of this final order was recorded in the second quarter of 2023. |
||||||||
| St. Lawrence Gas | New York | General rate review | On June 22, 2023, the New York State Department of Public Services issued an Order authorizing a revenue increase of $5,249 to be implemented over three years. New rates became effective July 1, 2023. |
||||||||
| Empire Electric | Missouri | Securitization | In February 2021, the Company's operations were impacted by extreme winter storm conditions experienced in Texas and parts of the central U.S. (“the Midwest Extreme Weather Event”). On January 19, 2022, Empire Electric filed a petition for securitization of the costs associated with the impact of the Midwest Extreme Weather Event. On March 21, 2022, Empire Electric filed a petition for securitization of the costs associated with the retirement of the Asbury generating plant. On August 18, 2022, and September 22, 2022, the Missouri Public Service Commission (“the MPSC”) issued and amended, respectively, a Report and Order authorizing Empire Electric to securitize approximately $290,383 in qualified extraordinary costs (Midwest Extreme Weather Event), energy transition costs (Asbury) and upfront financing costs associated with the proposed securitization. Empire Electric filed an appeal of the MPSC order on November 10, 2022. On August 1, 2023 the court affirmed the amount eligible for securitization of $290,383 as compared to the Company's original aggregate request of $362,420. The Company has until August 16, 2023 to move for rehearing at the Court of Appeals, and/or file a request for transfer to the Missouri Supreme Court. If the Company determines to proceed with securitization without further appeal, the Company may incur a one-time net loss of approximately $45,000. |
||||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| June 30, | December 31, | ||||||||||
| 2023 | 2022 | ||||||||||
| Regulatory assets | |||||||||||
| Fuel and commodity cost adjustments | 321,806 | 388,294 | |||||||||
| Rate adjustment mechanism | 185,395 | 136,198 | |||||||||
| Retired generating plant | 176,650 | 174,609 | |||||||||
| Deferred capitalized costs | 98,438 | 90,121 | |||||||||
| Income taxes | 98,173 | 97,414 | |||||||||
| Pension and post-employment benefits | 79,925 | 80,736 | |||||||||
| Environmental remediation | 68,376 | 70,529 | |||||||||
| Wildfire mitigation and vegetation management | 51,116 | 66,156 | |||||||||
| Clean energy and other customer programs | 31,772 | 28,145 | |||||||||
| Asset retirement obligation | 26,786 | 27,172 | |||||||||
| Debt premium | 22,056 | 24,888 | |||||||||
| Cost of removal | 11,084 | 11,084 | |||||||||
| Rate review costs | 8,621 | 9,481 | |||||||||
| Long-term maintenance contract | 5,917 | 6,504 | |||||||||
| Other | 75,200 | 60,170 | |||||||||
| Total regulatory assets | $ | 1,261,315 | $ | 1,271,501 | |||||||
| Less: current regulatory assets | (136,159) | (190,393) | |||||||||
| Non-current regulatory assets | $ | 1,125,156 | $ | 1,081,108 | |||||||
| Regulatory liabilities | |||||||||||
| Income taxes | $ | 302,770 | $ | 312,671 | |||||||
| Cost of removal | 191,541 | 191,173 | |||||||||
| Pension and post-employment benefits | 75,333 | 68,085 | |||||||||
| Fuel and commodity cost adjustments | 24,376 | 25,620 | |||||||||
| Clean energy and other customer programs | 12,710 | 11,572 | |||||||||
| Rate adjustment mechanism | 1,651 | 343 | |||||||||
| Other | 18,194 | 18,718 | |||||||||
| Total regulatory liabilities | $ | 626,575 | $ | 628,182 | |||||||
| Less: current regulatory liabilities | (74,867) | (69,865) | |||||||||
| Non-current regulatory liabilities | $ | 551,708 | $ | 558,317 | |||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| June 30, | December 31, | ||||||||||
| 2023 | 2022 | ||||||||||
| Long-term investments carried at fair value |
|||||||||||
| Atlantica | $ | 1,147,691 | $ | 1,268,140 | |||||||
| Atlantica Yield Energy Solutions Canada Inc. | 64,228 | 74,083 | |||||||||
| Other | 1,799 | 1,984 | |||||||||
| $ | 1,213,718 | $ | 1,344,207 | ||||||||
| Other long-term investments | |||||||||||
| Equity-method investees (a) | $ | 388,516 | $ | 381,802 | |||||||
| Development loans receivable from equity-method investees (a) | 91,044 | 52,923 | |||||||||
| Other | 27,485 | 27,600 | |||||||||
| $ | 507,045 | $ | 462,325 | ||||||||
| Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Fair value gain (loss) on investments carried at fair value | |||||||||||||||||||||||
| Atlantica | $ | (299,653) | $ | (137,586) | $ | (120,449) | $ | (171,370) | |||||||||||||||
| Atlantica Yield Energy Solutions Canada Inc. | (11,763) | $ | (5,815) | (11,567) | (12,395) | ||||||||||||||||||
| Other | 6 | $ | (121) | (10) | (264) | ||||||||||||||||||
| $ | (311,410) | $ | (143,522) | $ | (132,026) | $ | (184,029) | ||||||||||||||||
| Dividend and interest income from investments carried at fair value | |||||||||||||||||||||||
| Atlantica | $ | 21,788 | $ | 21,543 | $ | 43,577 | $ | 43,087 | |||||||||||||||
| Atlantica Yield Energy Solutions Canada Inc. | 4,821 | 5,397 | 10,678 | 12,691 | |||||||||||||||||||
| Other | 7 | 12 | 17 | 10 | |||||||||||||||||||
| $ | 26,616 | $ | 26,952 | $ | 54,272 | $ | 55,788 | ||||||||||||||||
| Other long-term investments | |||||||||||||||||||||||
| Equity method loss | (2,434) | (2,918) | (153) | (7,449) | |||||||||||||||||||
| Interest and other income | 9,532 | 6,108 | 20,223 | 11,621 | |||||||||||||||||||
| $ | 7,098 | $ | 3,190 | $ | 20,070 | $ | 4,172 | ||||||||||||||||
| Loss from long-term investments | $ | (277,696) | $ | (113,380) | $ | (57,684) | $ | (124,069) | |||||||||||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| June 30, | December 31, | ||||||||||
| 2023 | 2022 | ||||||||||
| Total assets | $ | 2,749,895 | $ | 2,740,132 | |||||||
| Total liabilities | 1,522,656 | 1,507,079 | |||||||||
| Net assets | $ | 1,227,239 | $ | 1,233,053 | |||||||
| AQN's ownership interest in the entities | 331,600 | 332,663 | |||||||||
|
Difference between investment carrying amount and underlying
equity in net assets(a)
|
56,916 | 49,139 | |||||||||
| AQN's investment carrying amount for the entities | $ | 388,516 | $ | 381,802 | |||||||
| Six months ended June 30 | |||||||||||
| 2023 | 2022 | ||||||||||
| Revenue | $ | 49,467 | $ | 20,455 | |||||||
| Net income (loss) | $ | 1,836 | $ | (30,246) | |||||||
Other comprehensive loss (a) |
$ | (2,807) | $ | (125,811) | |||||||
| Net loss attributable to AQN | $ | (153) | $ | (7,449) | |||||||
Other comprehensive loss attributable to AQN (a) |
$ | (2,076) | $ | (67,352) | |||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| June 30, | December 31, | ||||||||||
| 2023 | 2022 | ||||||||||
| AQN's maximum exposure in regards to VIEs | |||||||||||
| Carrying amount | $ | 121,176 | $ | 122,752 | |||||||
| Development loans receivable | 91,044 | 52,923 | |||||||||
| Performance guarantees and other commitments on behalf of VIEs | 674,874 | 658,224 | |||||||||
| $ | 887,094 | $ | 833,899 | ||||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Borrowing type | Weighted average coupon | Maturity | Par value | June 30, | December 31, | ||||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||||||||
| Senior unsecured revolving credit facilities (a) | — | 2024-2028 | N/A | $ | 801,929 | $ | 351,786 | ||||||||||||||||||||||
| Senior unsecured bank credit facilities and delayed draw term facility |
— | 2023-2031 | N/A | 788,906 | 773,643 | ||||||||||||||||||||||||
| Commercial paper | — | 2024 | N/A | 498,613 | 407,000 | ||||||||||||||||||||||||
| U.S. dollar borrowings | |||||||||||||||||||||||||||||
| Senior unsecured notes (Green Equity Units) |
1.18 | % | 2026 | $ | 1,150,000 | 1,143,856 | 1,142,814 | ||||||||||||||||||||||
| Senior unsecured notes (b) | 3.38 | % | 2023-2047 | $ | 1,490,000 | 1,481,682 | 1,496,101 | ||||||||||||||||||||||
| Senior unsecured utility notes | 6.34 | % | 2023-2035 | $ | 142,000 | 153,435 | 154,271 | ||||||||||||||||||||||
| Senior secured utility bonds | 4.71 | % | 2026-2044 | $ | 556,203 | 552,479 | 554,822 | ||||||||||||||||||||||
| Canadian dollar borrowings | |||||||||||||||||||||||||||||
| Senior unsecured notes | 3.68 | % | 2027-2050 | C$ | 1,200,000 | 903,360 | 882,899 | ||||||||||||||||||||||
| Senior secured project notes | 10.21 | % | 2027 | C$ | 18,512 | 13,982 | 15,024 | ||||||||||||||||||||||
| Chilean Unidad de Fomento borrowings | |||||||||||||||||||||||||||||
| Senior unsecured utility bonds | 3.98 | % | 2028-2040 | CLF | 1,579 | 81,532 | 77,206 | ||||||||||||||||||||||
| $ | 6,419,774 | $ | 5,855,566 | ||||||||||||||||||||||||||
| Subordinated borrowings | |||||||||||||||||||||||||||||
| Subordinated unsecured notes | 5.25 | % | 2082 | C$ | 400,000 | 298,033 | $ | 291,238 | |||||||||||||||||||||
| Subordinated unsecured notes | 5.56 | % | 2078-2082 | $ | 1,387,500 | 1,365,340 | 1,365,213 | ||||||||||||||||||||||
| $ | 1,663,373 | $ | 1,656,451 | ||||||||||||||||||||||||||
| $ | 8,083,147 | $ | 7,512,017 | ||||||||||||||||||||||||||
| Less: current portion | (513,803) | (423,274) | |||||||||||||||||||||||||||
| $ | 7,569,344 | $ | 7,088,743 | ||||||||||||||||||||||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| June 30, | December 31, | |||||||||||||
| 2023 | 2022 | |||||||||||||
| Revolving and term credit facilities | $ | 4,564,000 | $ | 4,513,300 | ||||||||||
| Funds drawn on facilities/commercial paper issued | (2,089,600) | (1,532,493) | ||||||||||||
| Letters of credit issued | (407,900) | (465,200) | ||||||||||||
| Liquidity available under the facilities | $ | 2,066,500 | $ | 2,515,607 | ||||||||||
| Undrawn portion of uncommitted letter of credit facilities | (307,600) | (226,900) | ||||||||||||
| Cash on hand | 100,258 | 57,623 | ||||||||||||
| Total liquidity and capital reserves | $ | 1,859,158 | $ | 2,346,330 | ||||||||||
| Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Long-term debt | $ | 65,046 | $ | 65,746 | $ | 128,814 | $ | 127,832 | |||||||||||||||
| Commercial paper, credit facility draws and related fees | 27,714 | 5,466 | 52,139 | 9,051 | |||||||||||||||||||
| Accretion of fair value adjustments | (824) | (4,471) | (4,223) | (9,014) | |||||||||||||||||||
| Capitalized interest and AFUDC capitalized on regulated property | (4,420) | (906) | (8,304) | (2,136) | |||||||||||||||||||
| Other | 2,147 | (1,262) | 3,155 | (3,217) | |||||||||||||||||||
| $ | 89,663 | $ | 64,573 | $ | 171,581 | $ | 122,516 | ||||||||||||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Pension benefits | |||||||||||||||||||||||
| Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Service cost | $ | 3,166 | $ | 4,532 | $ | 6,093 | $ | 8,388 | |||||||||||||||
| Non-service costs | |||||||||||||||||||||||
| Interest cost | 7,906 | 6,778 | 16,299 | 12,841 | |||||||||||||||||||
| Expected return on plan assets | (7,947) | (10,519) | (16,263) | (20,843) | |||||||||||||||||||
| Amortization of net actuarial losses (gains) | (71) | 1,257 | (195) | 2,046 | |||||||||||||||||||
| Amortization of prior service credits | (373) | (389) | (746) | (792) | |||||||||||||||||||
| Impact of regulatory accounts | 4,588 | 4,664 | 8,683 | 11,002 | |||||||||||||||||||
| $ | 4,103 | $ | 1,791 | $ | 7,778 | $ | 4,254 | ||||||||||||||||
| Net benefit cost | $ | 7,269 | $ | 6,323 | $ | 13,871 | $ | 12,642 | |||||||||||||||
| OPEB | |||||||||||||||||||||||
| Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Service cost | $ | 902 | $ | 1,554 | $ | 1,891 | $ | 3,109 | |||||||||||||||
| Non-service costs | |||||||||||||||||||||||
| Interest cost | 2,891 | 2,282 | 6,329 | 4,641 | |||||||||||||||||||
| Expected return on plan assets | (2,331) | (2,841) | (5,077) | (5,682) | |||||||||||||||||||
| Amortization of net actuarial gains | (561) | (86) | (1,122) | (172) | |||||||||||||||||||
| Amortization of prior service credits | (213) | 6 | (426) | 12 | |||||||||||||||||||
| Impact of regulatory accounts | 1,417 | 1,106 | 2,785 | 1,783 | |||||||||||||||||||
| $ | 1,203 | $ | 467 | $ | 2,489 | $ | 582 | ||||||||||||||||
| Net benefit cost | $ | 2,105 | $ | 2,021 | $ | 4,380 | $ | 3,691 | |||||||||||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| June 30, | December 31, | ||||||||||
| 2023 | 2022 | ||||||||||
| Contract adjustment payments | $ | 78,056 | $ | 113,876 | |||||||
| Asset retirement obligations | 113,678 | 116,584 | |||||||||
| Advances in aid of construction | 90,096 | 88,546 | |||||||||
| Environmental remediation obligation | 41,092 | 42,457 | |||||||||
| Customer deposits | 35,360 | 34,675 | |||||||||
| Unamortized investment tax credits | 17,419 | 17,649 | |||||||||
| Deferred credits and contingent consideration | 45,937 | 39,498 | |||||||||
| Preferred shares, Series C (a) | 12,067 | 12,072 | |||||||||
| Hook-up fees | 25,813 | 32,463 | |||||||||
| Lease liabilities | 21,415 | 21,834 | |||||||||
| Contingent development support obligations | 9,129 | 8,824 | |||||||||
| Note payable to related party | 25,808 | 25,808 | |||||||||
| Other | 34,004 | 41,156 | |||||||||
| $ | 549,874 | $ | 595,442 | ||||||||
| Less: current portion | (119,495) | (134,212) | |||||||||
| $ | 430,379 | $ | 461,230 | ||||||||
| Six months ended June 30 | ||||||||||||||
| 2023 | 2022 | |||||||||||||
| Common shares, beginning of period | 683,614,803 | 671,960,276 | ||||||||||||
| Dividend reinvestment plan | 4,370,289 | 3,014,264 | ||||||||||||
| Exercise of share-based awards (b) | 772,591 | 673,852 | ||||||||||||
| Conversion of convertible debentures | 1,415 | 754 | ||||||||||||
| Common shares, end of period | 688,759,098 | 675,649,146 | ||||||||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| 2023 | ||||||||
| Risk-free interest rate | 3.4 | % | ||||||
| Expected volatility | 27 | % | ||||||
| Expected dividend yield | 8.6 | % | ||||||
| Expected life | 5.50 years | |||||||
| Weighted average grant date fair value per option | C$1.04 | |||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Foreign currency cumulative translation | Unrealized gain (loss) on cash flow hedges | Pension and post-employment actuarial changes | Total | ||||||||||||||||||||
| Balance, January 1, 2022 | $ | (76,615) | $ | (3,514) | $ | 8,452 | $ | (71,677) | |||||||||||||||
| OCI | (18,013) | (128,838) | 23,722 | (123,129) | |||||||||||||||||||
| Amounts reclassified from AOCI to the unaudited interim consolidated statements of operations | (5,489) | 34,543 | 4,039 | 33,093 | |||||||||||||||||||
| Net current period OCI | $ | (23,502) | $ | (94,295) | $ | 27,761 | $ | (90,036) | |||||||||||||||
| OCI attributable to the non-controlling interests | 1,650 | — | — | 1,650 | |||||||||||||||||||
| Net current period OCI attributable to shareholders of AQN | (21,852) | (94,295) | 27,761 | (88,386) | |||||||||||||||||||
| Balance, December 31, 2022 | $ | (98,467) | $ | (97,809) | $ | 36,213 | $ | (160,063) | |||||||||||||||
| OCI | 16,343 | 52,435 | — | 68,778 | |||||||||||||||||||
| Amounts reclassified from AOCI to the unaudited interim consolidated statements of operations | (788) | 1,851 | (1,303) | (240) | |||||||||||||||||||
| Net current period OCI | $ | 15,555 | $ | 54,286 | $ | (1,303) | $ | 68,538 | |||||||||||||||
| OCI attributable to the non-controlling interests | (212) | — | — | (212) | |||||||||||||||||||
| Net current period OCI attributable to shareholders of AQN | $ | 15,343 | $ | 54,286 | $ | (1,303) | $ | 68,326 | |||||||||||||||
| Balance, June 30, 2023 | $ | (83,124) | $ | (43,523) | $ | 34,910 | $ | (91,737) | |||||||||||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Three months ended June 30 | |||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||
| Dividend | Dividend per share | Dividend | Dividend per share | ||||||||||||||||||||
| Common shares | $ | 75,379 | $ | 0.1085 | $ | 122,636 | $ | 0.1808 | |||||||||||||||
| Series A preferred shares | C$ | 1,549 | C$ | 0.3226 | C$ | 1,549 | C$ | 0.3226 | |||||||||||||||
| Series D preferred shares | C$ | 1,273 | C$ | 0.3182 | C$ | 1,273 | C$ | 0.3182 | |||||||||||||||
| Six months ended June 30 | |||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||
| Dividend | Dividend per share | Dividend | Dividend per share | ||||||||||||||||||||
| Common shares | $ | 150,765 | $ | 0.2170 | $ | 238,209 | $ | 0.3514 | |||||||||||||||
| Series A preferred shares | C$ | 3,097 | C$ | 0.6453 | C$ | 3,097 | C$ | 0.6453 | |||||||||||||||
| Series D preferred shares | C$ | 2,546 | C$ | 0.6364 | C$ | 2,546 | C$ | 0.6364 | |||||||||||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| HLBV and other adjustments attributable to: | |||||||||||||||||||||||
| Non-controlling interests - tax equity partnership units | $ | 25,172 | $ | 31,100 | $ | 59,743 | $ | 71,961 | |||||||||||||||
| Non-controlling interests - redeemable tax equity partnership units | 331 | 1,337 | 662 | 2,936 | |||||||||||||||||||
| Other net loss attributable to: | |||||||||||||||||||||||
| Non-controlling interests | (10,064) | (416) | (18,387) | (1,934) | |||||||||||||||||||
| $ | 15,439 | $ | 32,021 | $ | 42,018 | $ | 72,963 | ||||||||||||||||
| Redeemable non-controlling interest, held by related party | (6,349) | (3,086) | (12,399) | (5,661) | |||||||||||||||||||
Net effect of non-controlling interests |
$ | 9,090 | $ | 28,935 | $ | 29,619 | $ | 67,302 | |||||||||||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Expected income tax recovery at Canadian statutory rate | $ | (84,596) | $ | (22,562) | $ | (11,903) | $ | (6,119) | |||||||||||||||
| Increase (decrease) resulting from: | |||||||||||||||||||||||
| Effect of differences in tax rates on transactions in and within foreign jurisdictions and change in tax rates | (5,560) | (6,562) | (16,718) | (19,039) | |||||||||||||||||||
| Adjustments from investments carried at fair value | 40,357 | 17,216 | 11,092 | 18,229 | |||||||||||||||||||
| Change in valuation allowance | 676 | (1,582) | (791) | (1,731) | |||||||||||||||||||
| Non-controlling interests share of income | 2,201 | 4,587 | 12,393 | 15,640 | |||||||||||||||||||
| Acquisition-related state deferred tax adjustments | — | — | — | 7,600 | |||||||||||||||||||
| Tax credits | (8,095) | (11,992) | (20,505) | (22,023) | |||||||||||||||||||
| Amortization and settlement of excess deferred income tax | (2,456) | (2,296) | (6,207) | (6,329) | |||||||||||||||||||
| Other | 1,515 | 372 | 1,382 | 405 | |||||||||||||||||||
| Income tax recovery | $ | (55,958) | $ | (22,819) | $ | (31,257) | $ | (13,367) | |||||||||||||||
| Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Beginning balance | $ | 97,396 | $ | 28,959 | $ | 107,583 | $ | 27,470 | |||||||||||||||
| Charged to income tax recovery | 676 | (1,582) | (791) | (1,731) | |||||||||||||||||||
| Charged (reduction) to OCI | (6,418) | 2,664 | (15,138) | 4,302 | |||||||||||||||||||
| Reductions to other accounts | — | (211) | — | (211) | |||||||||||||||||||
| Ending balance | $ | 91,654 | $ | 29,830 | $ | 91,654 | $ | 29,830 | |||||||||||||||
| Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Acquisition and transition-related costs | $ | — | $ | 2,315 | $ | — | $ | 3,940 | |||||||||||||||
| Kentucky termination costs (a) | 43,808 | 3,535 | 46,527 | 4,075 | |||||||||||||||||||
| Acquisition-related settlement payment (b) | (11,983) | — | (11,983) | — | |||||||||||||||||||
| Other | 8,542 | 2,802 | 9,285 | 5,367 | |||||||||||||||||||
| $ | 40,367 | $ | 8,652 | $ | 43,829 | $ | 13,382 | ||||||||||||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Net earnings (loss) attributable to shareholders of AQN | (253,231) | (33,387) | $ | 16,908 | $ | 57,578 | |||||||||||||||||
| Series A preferred shares dividend | 1,142 | 1,219 | 2,290 | 2,437 | |||||||||||||||||||
| Series D preferred shares dividend | 938 | 1,001 | 1,882 | 2,003 | |||||||||||||||||||
| Net earnings (loss) attributable to common shareholders of AQN – basic and diluted | $ | (255,311) | $ | (35,607) | $ | 12,736 | $ | 53,138 | |||||||||||||||
| Weighted average number of shares | |||||||||||||||||||||||
| Basic | 687,847,010 | 674,742,897 | 688,277,615 | 674,720,319 | |||||||||||||||||||
| Effect of dilutive securities | — | — | 2,127,104 | 3,046,590 | |||||||||||||||||||
| Diluted | 687,847,010 | 674,742,897 | 690,404,719 | 677,766,909 | |||||||||||||||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Three months ended June 30, 2023 | |||||||||||||||||||||||
| Regulated Services Group | Renewable Energy Group | Corporate | Total | ||||||||||||||||||||
Revenue (1)(2) |
$ | 532,233 | $ | 71,694 | $ | — | $ | 603,927 | |||||||||||||||
| Other revenue | 14,200 | 9,380 | 364 | 23,944 | |||||||||||||||||||
| Fuel, power and water purchased | 138,374 | 3,782 | — | 142,156 | |||||||||||||||||||
| Net revenue | 408,059 | 77,292 | 364 | 485,715 | |||||||||||||||||||
| Operating expenses (recovery) | 213,891 | 27,737 | (146) | 241,482 | |||||||||||||||||||
| Administrative expenses | 13,548 | 11,044 | 1,100 | 25,692 | |||||||||||||||||||
| Depreciation and amortization | 84,754 | 33,291 | 403 | 118,448 | |||||||||||||||||||
| Loss on foreign exchange | — | — | 6,379 | 6,379 | |||||||||||||||||||
| Operating income (loss) | 95,866 | 5,220 | (7,372) | 93,714 | |||||||||||||||||||
| Interest expense | (42,724) | (16,420) | (30,519) | (89,663) | |||||||||||||||||||
| Income (loss) from long-term investments | 9,332 | 26,259 | (313,287) | (277,696) | |||||||||||||||||||
| Other expenses | (41,010) | (1,197) | (2,427) | (44,634) | |||||||||||||||||||
| Earnings (loss) before income taxes | $ | 21,464 | $ | 13,862 | $ | (353,605) | $ | (318,279) | |||||||||||||||
| Capital expenditures | $ | 225,505 | $ | 19,704 | $ | — | $ | 245,209 | |||||||||||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Three months ended June 30, 2022 | |||||||||||||||||||||||
| Regulated Services Group | Renewable Energy Group | Corporate | Total | ||||||||||||||||||||
Revenue (1)(2) |
$ | 507,095 | $ | 92,141 | $ | — | $ | 599,236 | |||||||||||||||
| Other revenue | 12,559 | 7,208 | 382 | 20,149 | |||||||||||||||||||
| Fuel, power and water purchased | 159,256 | 9,646 | — | 168,902 | |||||||||||||||||||
| Net revenue | 360,398 | 89,703 | 382 | 450,483 | |||||||||||||||||||
| Operating expenses | 179,258 | 27,053 | 19 | 206,330 | |||||||||||||||||||
| Administrative expenses | 10,966 | 8,510 | 631 | 20,107 | |||||||||||||||||||
| Depreciation and amortization | 76,228 | 36,057 | 262 | 112,547 | |||||||||||||||||||
| Loss on foreign exchange | — | — | 4,464 | 4,464 | |||||||||||||||||||
| Operating income (loss) | 93,946 | 18,083 | (4,994) | 107,035 | |||||||||||||||||||
| Interest expense | (23,860) | (14,862) | (25,851) | (64,573) | |||||||||||||||||||
| Income (loss) from long-term investments | 5,265 | 26,675 | (145,320) | (113,380) | |||||||||||||||||||
| Other expenses | (2,898) | (4,723) | (6,602) | (14,223) | |||||||||||||||||||
| Earnings (loss) before income taxes | $ | 72,453 | $ | 25,173 | $ | (182,767) | $ | (85,141) | |||||||||||||||
| Capital expenditures | $ | 179,878 | $ | 67,660 | $ | — | $ | 247,538 | |||||||||||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Six months ended June 30, 2023 | |||||||||||||||||||||||
| Regulated Services Group | Renewable Energy Group | Corporate | Total | ||||||||||||||||||||
Revenue (1)(2) |
1,206,394 | 150,410 | $ | — | $ | 1,356,804 | |||||||||||||||||
| Other revenue | 28,218 | 20,751 | 725 | 49,694 | |||||||||||||||||||
| Fuel, power and water purchased | 405,524 | 11,588 | — | 417,112 | |||||||||||||||||||
| Net revenue | 829,088 | 159,573 | 725 | 989,386 | |||||||||||||||||||
| Operating expenses | 401,315 | 60,447 | 7 | 461,769 | |||||||||||||||||||
| Administrative expenses | 21,873 | 18,474 | 3,178 | 43,525 | |||||||||||||||||||
| Depreciation and amortization | 170,611 | 68,836 | 642 | 240,089 | |||||||||||||||||||
| Loss on foreign exchange | — | — | 7,815 | 7,815 | |||||||||||||||||||
| Operating income (loss) | 235,289 | 11,816 | (10,917) | 236,188 | |||||||||||||||||||
| Interest expense | (81,202) | (31,315) | (59,064) | (171,581) | |||||||||||||||||||
| Income (loss) from long-term investments | 19,660 | 59,526 | (136,870) | (57,684) | |||||||||||||||||||
| Other expenses | (45,259) | (1,197) | (4,435) | (50,891) | |||||||||||||||||||
| Earnings (loss) before income taxes | $ | 128,488 | $ | 38,830 | $ | (211,286) | $ | (43,968) | |||||||||||||||
| Capital expenditures | 372,886 | 42,072 | — | 414,958 | |||||||||||||||||||
| June 30, 2023 | |||||||||||||||||||||||
| Property, plant and equipment | $ | 8,757,413 | $ | 3,550,202 | $ | 29,316 | $ | 12,336,931 | |||||||||||||||
| Investments carried at fair value | 1,799 | 1,211,919 | — | 1,213,718 | |||||||||||||||||||
| Equity-method investees | 57,586 | 322,141 | 8,789 | 388,516 | |||||||||||||||||||
| Total assets | 12,247,694 | 5,401,782 | 319,237 | 17,968,713 | |||||||||||||||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Six months ended June 30, 2022 | |||||||||||||||||||||||
| Regulated Services Group | Renewable Energy Group | Corporate | Total | ||||||||||||||||||||
Revenue (1)(2) |
$ | 1,129,854 | $ | 177,901 | $ | — | $ | 1,307,755 | |||||||||||||||
| Other revenue | 27,547 | 16,552 | 768 | 44,867 | |||||||||||||||||||
| Fuel, power and water purchased | 393,828 | 22,585 | — | 416,413 | |||||||||||||||||||
| Net revenue | 763,573 | 171,868 | 768 | 936,209 | |||||||||||||||||||
| Operating expenses | 363,667 | 54,643 | 22 | 418,332 | |||||||||||||||||||
| Administrative expenses | 19,036 | 16,055 | 2,468 | 37,559 | |||||||||||||||||||
| Depreciation and amortization | 156,511 | 75,474 | 526 | 232,511 | |||||||||||||||||||
| Loss on foreign exchange | — | — | 4,726 | 4,726 | |||||||||||||||||||
| 224,359 | 25,696 | (6,974) | 243,081 | ||||||||||||||||||||
| Gain on sale of renewable assets | — | 1,200 | — | 1,200 | |||||||||||||||||||
| Operating income (loss) | 224,359 | 26,896 | (6,974) | 244,281 | |||||||||||||||||||
| Interest expense | (45,286) | (30,575) | (46,655) | (122,516) | |||||||||||||||||||
| Income (loss) from long-term investments | 9,774 | 54,301 | (188,144) | (124,069) | |||||||||||||||||||
| Other expenses | (7,786) | (4,978) | (8,023) | (20,787) | |||||||||||||||||||
| Earnings (loss) before income taxes | $ | 181,061 | $ | 45,644 | $ | (249,796) | $ | (23,091) | |||||||||||||||
| Capital expenditures | 435,463 | 139,774 | — | 575,237 | |||||||||||||||||||
| December 31, 2022 | |||||||||||||||||||||||
| Property, plant and equipment | $ | 8,554,938 | $ | 3,360,687 | $ | 29,260 | $ | 11,944,885 | |||||||||||||||
| Investments carried at fair value | 1,984 | 1,342,223 | — | 1,344,207 | |||||||||||||||||||
| Equity-method investees | 56,199 | 310,103 | 15,500 | 381,802 | |||||||||||||||||||
| Total assets | 12,109,575 | 5,251,933 | 266,105 | 17,627,613 | |||||||||||||||||||
| Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| United States | $ | 503,777 | $ | 492,373 | $ | 1,144,201 | $ | 1,091,246 | |||||||||||||||
| Canada | 37,788 | 41,397 | 90,916 | 95,232 | |||||||||||||||||||
| Other regions | 86,306 | 85,615 | 171,381 | 166,144 | |||||||||||||||||||
| $ | 627,871 | $ | 619,385 | $ | 1,406,498 | $ | 1,352,622 | ||||||||||||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Thereafter | Total | |||||||||||||||||
Power purchase (1) |
$ | 83,606 | $ | 47,603 | $ | 29,461 | $ | 12,397 | $ | 12,643 | $ | 136,244 | $ | 321,954 | |||||||||
Natural gas supply and service agreements (2) |
93,739 | 92,102 | 51,456 | 38,265 | 33,088 | 171,141 | 479,791 | ||||||||||||||||
| Service agreements | 73,974 | 61,943 | 58,602 | 48,070 | 50,529 | 285,567 | 578,685 | ||||||||||||||||
| Capital projects | 16,537 | — | — | — | — | — | 16,537 | ||||||||||||||||
| Land easements and others | 13,967 | 14,159 | 14,344 | 14,514 | 14,693 | 500,830 | 572,507 | ||||||||||||||||
| Total | $ | 281,823 | $ | 215,807 | $ | 153,863 | $ | 113,246 | $ | 110,953 | $ | 1,093,782 | $ | 1,969,474 | |||||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Accounts receivable | $ | 21,450 | $ | (8,641) | $ | 35,213 | $ | (49,253) | |||||||||||||||
| Fuel and natural gas in storage | (12,837) | (23,362) | 19,657 | (7,128) | |||||||||||||||||||
| Supplies and consumables inventory | (11,678) | (3,006) | (22,454) | (10,775) | |||||||||||||||||||
| Income taxes recoverable | 5,134 | (861) | 5,683 | 2,071 | |||||||||||||||||||
| Prepaid expenses | 13,231 | (5,203) | 6,183 | (12,553) | |||||||||||||||||||
| Accounts payable | 71,253 | 48,424 | 18,033 | 26,759 | |||||||||||||||||||
| Accrued liabilities | 38,215 | (22,585) | (88,895) | 30,711 | |||||||||||||||||||
| Current income tax liability | (1,039) | (1,350) | 2,563 | 853 | |||||||||||||||||||
| Asset retirements and environmental obligations | 363 | (10,855) | (706) | (11,354) | |||||||||||||||||||
| Net regulatory assets and liabilities | (11,712) | (9,201) | (28,633) | (54,119) | |||||||||||||||||||
| $ | 112,380 | $ | (36,640) | $ | (53,356) | $ | (84,788) | ||||||||||||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| June 30, 2023 | Carrying amount |
Fair value |
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
| Long-term investments carried at fair value | $ | 1,213,718 | $ | 1,213,718 | $ | 1,149,505 | $ | — | $ | 64,213 | |||||||||||||||||||
| Development loans and other receivables | 98,313 | 91,547 | — | 91,547 | — | ||||||||||||||||||||||||
| Derivative instruments: | |||||||||||||||||||||||||||||
| Commodity contracts for regulatory operations | 139 | 139 | — | 139 | — | ||||||||||||||||||||||||
| Interest rate swaps designated as a hedge | 65,711 | 65,711 | — | 65,711 | — | ||||||||||||||||||||||||
| Interest rate cap not designated as hedge | 3,490 | 3,490 | — | 3,490 | — | ||||||||||||||||||||||||
| Congestion revenue rights not designated as hedge | 7,757 | 7,757 | — | — | 7,757 | ||||||||||||||||||||||||
| Cross-currency swap designated as a net investment hedge | 464 | 464 | — | 464 | — | ||||||||||||||||||||||||
| Total derivative instruments | 77,561 | 77,561 | — | 69,804 | 7,757 | ||||||||||||||||||||||||
| Total financial assets | $ | 1,389,592 | $ | 1,382,826 | $ | 1,149,505 | $ | 161,351 | $ | 71,970 | |||||||||||||||||||
| Long-term debt | $ | 8,083,147 | $ | 7,528,421 | $ | 2,716,700 | $ | 4,811,721 | $ | — | |||||||||||||||||||
| Notes payable to related party | 25,808 | 15,188 | — | 15,188 | — | ||||||||||||||||||||||||
| Convertible debentures | 238 | 285 | 285 | — | — | ||||||||||||||||||||||||
| Preferred shares, Series C | 12,067 | 11,943 | — | 11,943 | — | ||||||||||||||||||||||||
| Derivative instruments: | |||||||||||||||||||||||||||||
| Energy contracts designated as a cash flow hedge | 64,370 | 64,370 | — | — | 64,370 | ||||||||||||||||||||||||
| Energy contracts not designated as hedge | 11,515 | 11,515 | — | — | 11,515 | ||||||||||||||||||||||||
| Cross-currency swap designated as a net investment hedge | 15,550 | 15,550 | — | 15,550 | — | ||||||||||||||||||||||||
| Cross-currency swap designated as a cash flow hedge | 9,736 | 9,736 | — | 9,736 | — | ||||||||||||||||||||||||
| Commodity contracts for regulated operations | 1,441 | 1,441 | — | 1,441 | — | ||||||||||||||||||||||||
| Total derivative instruments | 102,612 | 102,612 | — | 26,727 | 75,885 | ||||||||||||||||||||||||
| Total financial liabilities | $ | 8,223,872 | $ | 7,658,449 | $ | 2,716,985 | $ | 4,865,579 | $ | 75,885 | |||||||||||||||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| December 31, 2022 | Carrying amount |
Fair value |
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
| Long-term investments carried at fair value | $ | 1,344,207 | $ | 1,344,221 | $ | 1,270,138 | $ | — | $ | 74,083 | |||||||||||||||||||
| Development loans and other receivables | 53,680 | 50,300 | — | 50,300 | — | ||||||||||||||||||||||||
| Derivative instruments: | |||||||||||||||||||||||||||||
| Energy contracts not designated as hedge | 393 | 393 | — | — | 393 | ||||||||||||||||||||||||
| Interest rate swap designated as a hedge | 69,188 | 69,188 | — | 69,188 | — | ||||||||||||||||||||||||
| Currency forward contract not designated as a hedge | 2,659 | 2,659 | — | 2,659 | — | ||||||||||||||||||||||||
| Congestion revenue rights not designated as hedge |
10,110 | 10,110 | — | — | 10,110 | ||||||||||||||||||||||||
| Cross-currency swap designated as a net investment hedge | 1,267 | 1,267 | — | 1,267 | — | ||||||||||||||||||||||||
| Commodity contracts for regulated operations | 283 | 283 | — | 283 | — | ||||||||||||||||||||||||
| Total derivative instruments | 83,900 | 83,900 | — | 73,397 | 10,503 | ||||||||||||||||||||||||
| Total financial assets | $ | 1,481,787 | $ | 1,478,421 | $ | 1,270,138 | $ | 123,697 | $ | 84,586 | |||||||||||||||||||
| Long-term debt | $ | 7,512,017 | $ | 6,699,031 | $ | 2,623,628 | $ | 4,075,403 | — | ||||||||||||||||||||
| Notes payable to related party | 25,808 | 15,180 | — | 15,180 | — | ||||||||||||||||||||||||
| Convertible debentures | 245 | 276 | 276 | — | — | ||||||||||||||||||||||||
| Preferred shares, Series C | 12,072 | 11,675 | — | 11,675 | — | ||||||||||||||||||||||||
| Derivative instruments: | |||||||||||||||||||||||||||||
| Energy contracts designated as a cash flow hedge | 120,284 | 120,284 | — | — | 120,284 | ||||||||||||||||||||||||
| Energy contracts not designated as hedge | 8,617 | 8,617 | — | — | 8,617 | ||||||||||||||||||||||||
| Cross-currency swap designated as a net investment hedge | 24,371 | 24,371 | — | 24,371 | — | ||||||||||||||||||||||||
| Cross-currency swap designated as a cash flow hedge | 15,435 | 15,435 | — | 15,435 | — | ||||||||||||||||||||||||
| Commodity contracts for regulated operations | 1,614 | 1,614 | — | 1,614 | — | ||||||||||||||||||||||||
| Total derivative instruments | 170,321 | 170,321 | — | 41,420 | 128,901 | ||||||||||||||||||||||||
| Total financial liabilities | $ | 7,720,463 | $ | 6,896,483 | $ | 2,623,904 | $ | 4,143,678 | $ | 128,901 | |||||||||||||||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Notional quantity (MW-hrs) |
Expiry | Receive average prices (per MW-hr) |
Pay floating price (per MW-hr) |
|||||||||||||||||
| 3,772,462 | September 2030 | $25.00 | Illinois Hub | |||||||||||||||||
| 404,612 | December 2028 | $29.00 | PJM Western HUB | |||||||||||||||||
| 1,707,551 | December 2027 | $22.00 | NI HUB | |||||||||||||||||
| 1,471,065 | December 2027 | $36.00 | ERCOT North HUB | |||||||||||||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Effective portion of cash flow hedge | $ | 29,949 | $ | (20,298) | $ | 52,435 | $ | (81,852) | |||||||||||||||
| Amortization of cash flow hedge | (1,421) | (3,828) | (4,908) | (3,992) | |||||||||||||||||||
| Amounts reclassified from AOCI | 7,893 | 11,247 | 6,759 | 14,079 | |||||||||||||||||||
| OCI attributable to shareholders of AQN | $ | 36,421 | $ | (12,879) | $ | 54,286 | $ | (71,765) | |||||||||||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||||||
| Unrealized gain (loss) on derivative financial instruments: | ||||||||||||||||||||
| Interest rate swaps | $ | — | $ | (4,680) | $ | — | $ | (4,680) | ||||||||||||
| Energy derivative contracts | 84 | (2,352) | 62 | (3,103) | ||||||||||||||||
| Commodity contracts | — | — | 1,128 | — | ||||||||||||||||
| $ | 84 | $ | (7,032) | $ | 1,190 | $ | (7,783) | |||||||||||||
| Realized gain (loss) on derivative financial instruments: | ||||||||||||||||||||
| Energy derivative contracts | (1,537) | (157) | (3,830) | 149 | ||||||||||||||||
| $ | (1,537) | $ | (157) | $ | (3,830) | $ | 149 | |||||||||||||
| Loss on derivative financial instruments not accounted for as hedges | (1,453) | (7,189) | (2,640) | (7,634) | ||||||||||||||||
| Amortization of AOCI gains frozen as a result of hedge dedesignation | 997 | 1,054 | 1,994 | 1,750 | ||||||||||||||||
| $ | (456) | $ | (6,135) | $ | (646) | $ | (5,884) | |||||||||||||
| Unaudited interim consolidated statements of operations classification: | ||||||||||||||||||||
| Gain (loss) on derivative financial instruments | $ | 1,039 | $ | (3,313) | $ | 3,205 | $ | (2,569) | ||||||||||||
| Non-regulated energy sales | (1,495) | (2,822) | (3,851) | (3,315) | ||||||||||||||||
| $ | (456) | $ | (6,135) | $ | (646) | $ | (5,884) | |||||||||||||
| Algonquin Power & Utilities Corp. | ||
| Notes to the Unaudited Interim Consolidated Financial Statements | ||
| June 30, 2023 and 2022 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
Management Discussion & Analysis | Caution Concerning Forward-Looking Statements and Forward-Looking Information | |||||
| Caution Concerning Non-GAAP Measures | |||||
| Overview and Business Strategy | |||||
| Significant Updates | |||||
| 2023 Second Quarter Results From Operations | |||||
| 2023 Year-to-Date Results from Operations | |||||
| 2023 Second Quarter and Year-to-Date Net Earnings Summary | |||||
| 2023 Second Quarter and Year-to-Date Adjusted EBITDA Summary | |||||
| Regulated Services Group | |||||
| Renewable Energy Group | |||||
| AQN: Corporate and Other Expenses | |||||
| Non-GAAP Financial Measures | |||||
| Summary of Property, Plant and Equipment Expenditures | |||||
| Liquidity and Capital Reserves | |||||
| Share-Based Compensation Plans | |||||
| Related Party Transactions | |||||
| Enterprise Risk Management | |||||
| Quarterly Financial Information | |||||
| Disclosure Controls and Procedures | |||||
| Critical Accounting Estimates and Policies | |||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 1 |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 2 |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | |||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 4 |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | |||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 6 |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | |||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | |||||
| (all dollar amounts in $ millions except per share information) | Three months ended June 30 |
||||||||||||||||
| 2023 | 2022 | Change | |||||||||||||||
| Net loss attributable to shareholders | $(253.2) | $(33.4) | (658)% | ||||||||||||||
Adjusted Net Earnings1 |
$56.2 | $109.6 | (49)% | ||||||||||||||
Adjusted EBITDA1 |
$277.7 | $289.2 | (4)% | ||||||||||||||
| Net loss per common share | $(0.37) | $(0.05) | (640)% | ||||||||||||||
Adjusted Net Earnings per common share1 |
$0.08 | $0.16 | (50)% | ||||||||||||||
| 1 | See Caution Concerning Non-GAAP Measures. |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 9 |
||||
Key Financial Information |
Three months ended June 30 | ||||||||||
| (all dollar amounts in $ millions except per share information) | 2023 | 2022 | |||||||||
| Revenue | $ | 627.9 | $ | 619.4 | |||||||
| Net loss attributable to shareholders | (253.2) | (33.4) | |||||||||
| Cash provided by operating activities | 261.4 | 135.3 | |||||||||
Adjusted Net Earnings1 |
56.2 | 109.6 | |||||||||
Adjusted EBITDA1 |
277.7 | 289.2 | |||||||||
Adjusted Funds from Operations1 |
154.2 | 180.3 | |||||||||
| Dividends declared to common shareholders | 75.4 | 122.6 | |||||||||
| Weighted average number of common shares outstanding | 687,761,648 | 674,742,897 | |||||||||
| Per share | |||||||||||
| Basic net loss | $ | (0.37) | $ | (0.05) | |||||||
| Diluted net loss | $ | (0.37) | $ | (0.05) | |||||||
Adjusted Net Earnings1 |
$ | 0.08 | $ | 0.16 | |||||||
| Dividends declared to common shareholders | $ | 0.11 | $ | 0.18 | |||||||
| 1 | See Caution Concerning Non-GAAP Measures. |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 10 |
||||
| (all dollar amounts in $ millions) | Three months ended June 30 | ||||
| Comparative Prior Period Revenue | $ | 619.4 | |||
| REGULATED SERVICES GROUP | |||||
| Existing Facilities | |||||
Electricity: Decrease is primarily due to one-time insurance proceeds for the Neosho Ridge Facility received in 2022 and unfavourable weather at the Empire Electric System. |
(17.2) | ||||
Natural Gas: Decrease is primarily due to lower pass through commodity costs. |
(15.6) | ||||
| Water: Increase is primarily due to the inflationary rate increase mechanism at the Suralis Water System (formerly called the ESSAL Water System) and organic growth at the Litchfield Park and Gold Canyon Water Systems. | 5.0 | ||||
| Other: | (0.7) | ||||
| (28.5) | |||||
| Rate Reviews | |||||
| Electricity: Increase is primarily due to the implementation of new rates at the CalPeco Electric System with recoupment to the first quarter of 2022, as well as the implementation of new rates at the Empire, Bermuda Electric Light Company ("BELCO") and Granite State Electric Systems. | 50.1 | ||||
| Natural Gas: Increase is primarily due to the implementation of new rates at the EnergyNorth, New Brunswick, Peach State, St. Lawrence and Empire Gas Systems. |
2.6 | ||||
| Water: Increase is due to the implementation of new rates at the Park Water System. | 1.5 | ||||
| 54.2 | |||||
| Foreign Exchange | 1.1 | ||||
| RENEWABLE ENERGY GROUP | |||||
| Existing Facilities | |||||
| Hydro: Decrease is primarily driven by lower retail sales in the Maritimes Region, and lower production for the Ontario and Quebec regions. | (2.1) | ||||
| Wind CA: Decrease is primarily due to lower production across the majority of the Canadian wind facilities. | (2.7) | ||||
| Wind U.S.: Decrease is primarily due to lower production across all U.S. wind facilities. | (7.4) | ||||
| Solar: Decrease is primarily driven by lower energy capture prices at the Altavista and Great Bay II Solar Facilities. | (1.2) | ||||
| Thermal: Decrease is primarily driven by unfavourable energy market pricing at the Windsor Locks Thermal Facility along with lower production at the Sanger Thermal Facility. | (4.2) | ||||
| Other: | (0.3) | ||||
| (17.9) | |||||
| New Facilities | |||||
| Other: Increase is primarily driven by Blue Hill Wind Facility (achieved full commercial operations (“COD”). | 1.0 | ||||
| 1.0 | |||||
| Foreign Exchange | (1.4) | ||||
| Current Period Revenue | $ | 627.9 | |||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | |||||
Key Financial Information |
Six months ended June 30 | ||||||||||
| (all dollar amounts in $ millions except per share information) | 2023 | 2022 | |||||||||
| Revenue | $ | 1,406.5 | $ | 1,352.6 | |||||||
| Net earnings attributable to shareholders | 16.9 | 57.6 | |||||||||
| Cash provided by operating activities | 294.7 | 301.6 | |||||||||
Adjusted Net Earnings1 |
176.0 | 250.7 | |||||||||
Adjusted EBITDA1 |
618.7 | 619.4 | |||||||||
Adjusted Funds from Operations1 |
367.8 | 400.6 | |||||||||
| Dividends declared to common shareholders | 150.8 | 238.2 | |||||||||
| Weighted average number of common shares outstanding | 687,727,579 | 674,720,319 | |||||||||
| Per share | |||||||||||
| Basic net earnings | $ | 0.02 | $ | 0.08 | |||||||
| Diluted net earnings | $ | 0.02 | $ | 0.08 | |||||||
Adjusted Net Earnings1 |
$ | 0.25 | $ | 0.36 | |||||||
| Dividends declared to common shareholders | $ | 0.22 | $ | 0.35 | |||||||
| 1 | See Caution Concerning Non-GAAP Measures. |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 12 |
||||
| (all dollar amounts in $ millions) | Six months ended June 30 | ||||
| Comparative Prior Period Revenue | $ | 1,352.6 | |||
| REGULATED SERVICES GROUP | |||||
| Existing Facilities | |||||
| Electricity: Increase is primarily due to higher pass through commodity costs at the Granite State Electric System, partially offset by one-time insurance proceeds for the Neosho Ridge Facility received in 2022. | 4.4 | ||||
Natural Gas: Decrease is primarily due to lower pass through commodity costs. |
(10.9) | ||||
| Water: Increase is primarily due to the inflationary rate increase mechanism at the Suralis Water System and organic growth at the Litchfield Park and Gold Canyon Water Systems. | 9.7 | ||||
| Other: | (0.4) | ||||
| 2.8 | |||||
| Rate Reviews | |||||
| Electricity: Increase is primarily due to the implementation of new rates at the CalPeco Electric System with recoupment to the first quarter of 2022, as well as the implementation of new rates at the Empire, BELCO and Granite State Electric Systems. | 62.4 | ||||
| Natural Gas: Increase is primarily due to the implementation of new rates at the EnergyNorth, New Brunswick, Peach State, St. Lawrence and Empire Gas Systems. |
5.0 | ||||
| Water: Increase is due to the implementation of new rates at the Park Water System with one-time revenues from a recoupment to the third quarter of 2022. | 6.1 | ||||
| 73.5 | |||||
| Foreign Exchange | 1.1 | ||||
| RENEWABLE ENERGY GROUP | |||||
| Existing Facilities | |||||
| Hydro: Decrease is primarily driven by lower retail sales in the Maritimes Region. | (3.1) | ||||
| Wind CA: Decrease is primarily due to lower production across all Canadian wind facilities. | (5.0) | ||||
| Wind U.S.: Decrease is primarily due to lower production across the U.S. wind facilities. | (3.4) | ||||
| Solar: Decrease is primarily driven by lower energy capture prices at the Altavista and Great Bay II Solar Facilities. | (2.5) | ||||
| Thermal: Decrease is primarily driven by unfavourable energy market pricing at the Windsor Locks Thermal Facility along with lower production at the Sanger Thermal Facility. | (7.7) | ||||
| Other: | (1.1) | ||||
| (22.8) | |||||
| New Facilities | |||||
| Other: Increase is primarily driven by the Blue Hill Wind Facility (achieved COD in April 2022). | 2.4 | ||||
| 2.4 | |||||
| Foreign Exchange | (3.1) | ||||
| Current Period Revenue | $ | 1,406.5 | |||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | |||||
| Change in net earnings (loss) attributable to shareholders | Three months ended | Six months ended | |||||||||
| June 30 | June 30 | ||||||||||
| (all dollar amounts in $ millions) | 2023 | 2023 | |||||||||
| Net earnings (loss) attributable to shareholders - Prior Period Balance | $ | (33.4) | $ | 57.6 | |||||||
Adjusted EBITDA1 |
(11.5) | (0.7) | |||||||||
| Net earnings attributable to the non-controlling interest, exclusive of HLBV | (12.9) | (23.2) | |||||||||
| Income tax recovery | 33.2 | 17.9 | |||||||||
| Interest expense | (25.1) | (49.1) | |||||||||
| Other net losses | (31.7) | (30.4) | |||||||||
| Unrealized loss on energy derivatives included in revenue | 2.6 | 3.2 | |||||||||
| Pension and post-employment non-service costs | (3.0) | (5.5) | |||||||||
| Change in value of investments carried at fair value | (167.9) | 52.0 | |||||||||
| Gain on derivative financial instruments | 4.3 | 5.8 | |||||||||
| Foreign exchange | (1.9) | (3.1) | |||||||||
| Depreciation and amortization | (5.9) | (7.6) | |||||||||
| Net earnings (loss) attributable to shareholders - Current Period Balance | $ | (253.2) | $ | 16.9 | |||||||
| Change in Net Earnings (loss) ($) | $ | (219.8) | $ | (40.7) | |||||||
| Change in Net Earnings (loss) (%) | (658.1) | % | (70.7) | % | |||||||
| 1 | See Caution Concerning Non-GAAP Measures. |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 14 |
||||
| Three months ended | Six months ended | ||||||||||||||||||||||
Adjusted EBITDA1 by business units |
June 30 | June 30 | |||||||||||||||||||||
| (all dollar amounts in $ millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Divisional Operating Profit for Regulated Services Group1 |
$ | 214.4 | $ | 185.9 | $ | 469.7 | $ | 417.2 | |||||||||||||||
Divisional Operating Profit for Renewable Energy Group1 |
90.6 | 122.2 | 197.0 | 240.2 | |||||||||||||||||||
| Administrative Expenses | (25.7) | (20.1) | (43.5) | (37.6) | |||||||||||||||||||
| Other Income & Expenses | (1.6) | 1.2 | (4.5) | (0.4) | |||||||||||||||||||
Total AQN Adjusted EBITDA1 |
$ | 277.7 | $ | 289.2 | $ | 618.7 | $ | 619.4 | |||||||||||||||
Change in Adjusted EBITDA1 ($) |
$ | (11.5) | $ | (0.7) | |||||||||||||||||||
Change in Adjusted EBITDA1 (%) |
(4.0) | % | (0.1) | % | |||||||||||||||||||
Change in Adjusted EBITDA1 Breakdown |
Three months ended June 30, 2023 | |||||||||||||
| (all dollar amounts in $ millions) | Regulated Services | Renewable Energy | Corporate | Total | ||||||||||
| Prior period balances | $ | 185.9 | $ | 122.2 | $ | (18.9) | $ | 289.2 | ||||||
| Existing Facilities and Investments | 3.3 | (30.5) | (2.8) | (30.0) | ||||||||||
| New Facilities and Investments | — | (0.1) | — | (0.1) | ||||||||||
| Rate Reviews | 24.5 | — | — | 24.5 | ||||||||||
| Foreign Exchange Impact | 0.7 | (1.0) | — | (0.3) | ||||||||||
| Administrative Expenses | — | — | (5.6) | (5.6) | ||||||||||
| Total change during the period | $ | 28.5 | $ | (31.6) | $ | (8.4) | $ | (11.5) | ||||||
| Current period balances | $ | 214.4 | $ | 90.6 | $ | (27.3) | $ | 277.7 | ||||||
Change in Adjusted EBITDA1 Breakdown |
Six months ended June 30, 2023 | |||||||||||||
| (all dollar amounts in $ millions) | Regulated Services | Renewable Energy | Corporate | Total | ||||||||||
| Prior period balances | $ | 417.2 | $ | 240.2 | $ | (38.0) | $ | 619.4 | ||||||
| Existing Facilities and Investments | 8.3 | (40.7) | (4.1) | (36.5) | ||||||||||
| New Facilities and Investments | — | 0.3 | — | 0.3 | ||||||||||
| Rate Reviews | 43.8 | — | — | 43.8 | ||||||||||
| Foreign Exchange Impact | 0.4 | (2.8) | — | (2.4) | ||||||||||
| Administrative Expenses | — | — | (5.9) | (5.9) | ||||||||||
| Total change during the period | $ | 52.5 | $ | (43.2) | $ | (10.0) | $ | (0.7) | ||||||
| Current period balances | $ | 469.7 | $ | 197.0 | $ | (48.0) | $ | 618.7 | ||||||
| 1 | See Caution Concerning Non-GAAP Measures. |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 15 |
||||
| Utility System Type | As at June 30 | ||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||
| (all dollar amounts in $ millions) | Assets | Net Utility Sales1 |
Total Customer Connections2 |
Assets | Net Utility Sales1 |
Total Customer Connections2 |
|||||||||||||||||
| Electricity | 5,065.8 | 418.5 | 309,000 | 4,848.8 | 373.0 | 307,000 | |||||||||||||||||
| Natural Gas | 1,753.9 | 206.8 | 376,000 | 1,611.9 | 200.9 | 370,000 | |||||||||||||||||
| Water and Wastewater | 1,651.7 | 175.6 | 571,000 | 1,404.3 | 162.2 | 562,000 | |||||||||||||||||
| Other | 286.0 | 28.2 | 311.8 | 27.5 | |||||||||||||||||||
| Total | $ | 8,757.4 | $ | 829.1 | 1,256,000 | $ | 8,176.8 | $ | 763.6 | 1,239,000 | |||||||||||||
| Accumulated Deferred Income Taxes Liability | $ | 722.3 | $ | 650.7 | |||||||||||||||||||
| 1 | Net Utility Sales for the six months ended June 30, 2023 and 2022. See Caution Concerning Non-GAAP Measures. |
||||
| 2 | Total Customer Connections represents the sum of all active and vacant customer connections. | ||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 16 |
||||
| Electric Distribution Systems | Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Average Active Electric Customer Connections For The Period | |||||||||||||||||||||||
| Residential | 262,700 | 261,800 | 261800 | 262,500 | 261,700 | ||||||||||||||||||
| Commercial and industrial | 42,700 | 42,400 | 42,600 | 42,300 | |||||||||||||||||||
| Total Average Active Electric Customer Connections For The Period | 305,400 | 304,200 | 305,100 | 304,000 | |||||||||||||||||||
| Customer Usage (GW-hrs) | |||||||||||||||||||||||
| Residential | 574.1 | 596.6 | 1,329.2 | 1,441.5 | |||||||||||||||||||
| Commercial and industrial | 918.9 | 948.5 | 1,842.3 | 1,864.4 | |||||||||||||||||||
| Total Customer Usage (GW-hrs) | 1,493.0 | 1,545.1 | 3,171.5 | 3,305.9 | |||||||||||||||||||
| Natural Gas Distribution Systems | Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Average Active Natural Gas Customer Connections For The Period | |||||||||||||||||||||||
| Residential | 330,500 | 319,700 | 330,700 | 321,100 | |||||||||||||||||||
| Commercial and industrial | 41,100 | 38,500 | 41,100 | 38,900 | |||||||||||||||||||
| Total Average Active Natural Gas Customer Connections For The Period | 371,600 | 358,200 | 371,800 | 360,000 | |||||||||||||||||||
| Customer Usage (MMBTU) | |||||||||||||||||||||||
| Residential | 3,184,000 | 3,079,000 | 13,215,000 | 14,222,000 | |||||||||||||||||||
| Commercial and industrial | 4,196,000 | 3,655,000 | 12,910,000 | 12,534,000 | |||||||||||||||||||
| Total Customer Usage (MMBTU) | 7,380,000 | 6,734,000 | 26,125,000 | 26,756,000 | |||||||||||||||||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 17 |
||||
| Water and Wastewater Distribution Systems | Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Average Active Customer Connections For The Period | |||||||||||||||||||||||
| Wastewater customer connections | 50,800 | 47,700 | 50,900 | 47,700 | |||||||||||||||||||
| Water distribution customer connections | 508,400 | 501,800 | 508,500 | 498,500 | |||||||||||||||||||
| Total Average Active Customer Connections For The Period | 559,200 | 549,500 | 559,400 | 546,200 | |||||||||||||||||||
| Gallons Provided (millions of gallons) | |||||||||||||||||||||||
| Wastewater treated | 840 | 812 | 1,635 | 1,590 | |||||||||||||||||||
| Water provided | 10,070 | 10,010 | 18,577 | 18,628 | |||||||||||||||||||
| Total Gallons Provided (millions of gallons) | 10,910 | 10,822 | 20,212 | 20,218 | |||||||||||||||||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | |||||
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| (all dollar amounts in $ millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Regulated electricity distribution | $ | 326.8 | $ | 295.6 | $ | 642.4 | $ | 576.3 | |||||||||||||||
| Less: Regulated electricity purchased | (98.3) | (104.1) | (223.9) | (203.3) | |||||||||||||||||||
Net Utility Sales - electricity1 |
228.5 | 191.5 | 418.5 | 373.0 | |||||||||||||||||||
| Regulated gas distribution | 109.5 | 121.9 | 380.7 | 385.3 | |||||||||||||||||||
| Less: Regulated gas purchased | (36.2) | (51.8) | (173.9) | (184.4) | |||||||||||||||||||
|
Net Utility Sales - natural gas1
|
73.3 | 70.1 | 206.8 | 200.9 | |||||||||||||||||||
| Regulated water reclamation and distribution | 95.9 | 89.6 | 183.3 | 168.3 | |||||||||||||||||||
| Less: Regulated water purchased | (3.8) | (3.4) | (7.7) | (6.1) | |||||||||||||||||||
Net Utility Sales - water reclamation and distribution1 |
92.1 | 86.2 | 175.6 | 162.2 | |||||||||||||||||||
Other revenue2 |
14.2 | 12.6 | 28.2 | 27.5 | |||||||||||||||||||
Net Utility Sales1,3 |
408.1 | 360.4 | 829.1 | 763.6 | |||||||||||||||||||
| Operating expenses | (213.9) | (179.3) | (401.3) | (363.7) | |||||||||||||||||||
| Other income | 9.4 | 5.3 | 19.7 | 9.8 | |||||||||||||||||||
HLBV4 |
10.8 | (0.5) | 22.2 | 7.5 | |||||||||||||||||||
Divisional Operating Profit1,5 |
$ | 214.4 | $ | 185.9 | $ | 469.7 | $ | 417.2 | |||||||||||||||
| 1 | See Caution Concerning Non-GAAP Measures. |
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| 2 | See Note 18 in the unaudited interim consolidated financial statements. |
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| 3 | This table contains a reconciliation of Net Utility Sales to revenue. The relevant sections of the table are derived from and should be read in conjunction with the unaudited consolidated statement of operations and Note 18 in the unaudited interim consolidated financial statements, “Segmented Information”. This supplementary disclosure is intended to more fully explain disclosures related to Net Utility Sales and provides additional information related to the operating performance of the Regulated Services Group. Investors are cautioned that Net Utility Sales should not be construed as an alternative to revenue. |
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| 4 | HLBV income represents the value of net tax attributes monetized by the Regulated Services Group in the period at the Luning and Turquoise Solar Facilities and the Neosho Ridge, Kings Point and North Fork Ridge Wind Facilities. |
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| 5 | This table contains a reconciliation of Divisional Operating Profit to revenue for the Regulated Services Group. The relevant sections of the table are derived from and should be read in conjunction with the unaudited consolidated statement of operations and Note 18 in the unaudited interim consolidated financial statements, “Segmented Information”. This supplementary disclosure is intended to more fully explain disclosures related to Divisional Operating Profit and provides additional information related to the operating performance of the Regulated Services Group. Investors are cautioned that Divisional Operating Profit should not be construed as an alternative to revenue. |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 19 |
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| (all dollar amounts in $ millions) | Three months ended June 30 | ||||
Prior Period Divisional Operating Profit1 |
$ | 185.9 | |||
| Existing Facilities | |||||
| Electricity: Increase is primarily due higher HLBV of approximately $12.0 million income at the Neosho Ridge Wind Facility partially offset by unfavourable weather of approximately $11.0 million at the Empire Electric System. | 2.2 | ||||
| Gas: Decrease is primarily due to higher operating expenses. | (2.0) | ||||
| Water: Decrease is driven by lower revenue related to the removal of the decoupling mechanism at the Park Water System causing seasonality in 2023 not encountered in 2022 partially offset by organic growth at the Litchfield Park and Gold Canyon Water Systems. | (1.1) | ||||
| Other: Increase is driven by higher interest income on regulatory asset accounts. | 4.2 | ||||
| 3.3 | |||||
| Rate Reviews | |||||
Electricity: Increase is primarily due to the implementation of new rates at the CalPeco Electric System with recoupment to the first quarter of 2022 of approximately $11.2 million, as well as the implementation of new rates at the Empire, BELCO and Granite State Electric Systems. |
20.4 | ||||
| Gas: Increase is primarily due to the implementation of new rates at the EnergyNorth, New Brunswick, Peach State, St. Lawrence and Empire Gas Systems. |
2.6 | ||||
| Water: Increase is due to the implementation of new rates at the Park Water System. | 1.5 | ||||
| 24.5 | |||||
| Foreign Exchange | 0.7 | ||||
Current Period Divisional Operating Profit1 |
$ | 214.4 | |||
| 1 | See Caution Concerning Non-GAAP Measures. |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 20 |
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| (all dollar amounts in $ millions) | Six months ended June 30 | ||||
Prior Period Divisional Operating Profit1 |
$ | 417.2 | |||
| Existing Facilities | |||||
| Electricity: Increase is primarily due higher HLBV of approximately $12.0 million income at the Neosho Ridge Wind Facility partially offset by unfavourable weather and higher operating expenses of approximately $12.0 million at the Empire Electric System, leading to no change period over period. | — | ||||
| Natural Gas: Decrease is primarily due to higher operating costs. | (3.0) | ||||
| Water: Increase is primarily due to organic growth at the Litchfield Park and Gold Canyon Water Systems. | 1.2 | ||||
| Other: Increase is primarily due to increased carrying charges on regulatory assets. | 10.1 | ||||
| 8.3 | |||||
| Rate Reviews | |||||
| Electricity: Increase is primarily due to the implementation of new rates at the CalPeco Electric System with recoupment to the first quarter of 2022, as well as the implementation of new rates at the Empire, BELCO and Granite State Electric Systems. | 32.7 | ||||
| Natural Gas: Increase is primarily due to the implementation of new rates at the EnergyNorth, New Brunswick, Peach State, St. Lawrence and Empire Gas Systems. |
5.0 | ||||
| Water: Increase is due to the implementation of new rates at the Park Water System with one-time revenues from a recoupment to the third quarter of 2022. | 6.1 | ||||
| 43.8 | |||||
| Foreign Exchange | 0.4 | ||||
Current Period Divisional Operating Profit1 |
$ | 469.7 | |||
| 1 | See Caution Concerning Non-GAAP Measures. |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 21 |
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| Utility | Jurisdiction | Regulatory Proceeding Type | Rate Request (millions) |
Current Status | ||||||||||||||||
| Completed Rate Reviews | ||||||||||||||||||||
| BELCO | Bermuda | General Rate Case ("GRC") | $34.8 | On September 30, 2021, BELCO filed its revenue allowance application in which it requested a $34.8 million increase for 2022 and a $6.1 million increase for 2023. On March 18, 2022, the Regulatory Authority (“RA”) approved an annual increase of $22.8 million, for a revenue allowance of $224.1 million for 2022 and $226.2 million for 2023. The RA authorized a 7.16% rate of return, comprised of a 62% equity and an 8.92% return on equity (“ROE”). In April 2022, BELCO filed an appeal in the Supreme Court of Bermuda challenging the decisions made by the RA through the recent Retail Tariff Review. A hearing on the appeal occurred in May 2023 and a judgment is expected in the second half of 2023. |
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| New Brunswick Gas | Canada | GRC | -$3.9 | On November 22, 2021, filed its 2022 general rate application for a revenue decrease based on the Energy & Utilities Board's decision authorizing a capital structure of 45% equity and an ROE of 8.5%. In January 2022, New Brunswick Gas appealed the Energy & Utilities Board's cost of capital decision. In May 2022, the Energy & Utilities Board issued a partial decision approving a decrease in annual revenues of $1.0 million to become effective in July 2022. In June 2022, the Court of Appeal found in favour of New Brunswick Gas and remanded the cost of capital case back to the Energy & Utilities Board. On December 22, 2022 the Energy & Utilities Board issued a Final Order and approved an annual revenue increase of $1.3 million based on an ROE of 9.8%. New rates became effective January 1, 2023. | ||||||||||||||||
| Apple Valley Water System | California | GRC | $2.9 | On July 2, 2021, filed an application requesting revenue increases of $2.9 million for 2022, $2.1 million for 2023, and $2.3 million for 2024 based on an ROE of 9.4% and on a 57% equity capital structure. The California Public Utilities Commission ("CPUC") Public Advocates Office issued its report in January 2022. Rebuttal testimony was filed in February 2022 and a hearing was held in March 2022. On February 3, 2023, the Commission issued a Final Order authorizing an annual revenue increase of $1.5 million. New rates became effective in March 2023 retroactive to July 1, 2022. |
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| Park Water System | California | GRC | $5.5 | On July 2, 2021, filed an application requesting revenue increases of $5.5 million for 2022, $1.8 million for 2023, and $1.8 million for 2024 based on an ROE of 9.4% and on a 57% equity capital structure. CPUC Public Advocates Office issued its report in January 2022. Rebuttal testimony was filed in February 2022 and a hearing was held in March 2022. On February 3, 2023, the CPUC issued a Final Order authorizing an annual revenue increase of $1.1 million. New rates became effective in March 2023 retroactive to July 1, 2022. |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 22 |
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| Utility | Jurisdiction | Regulatory Proceeding Type | Rate Request (millions) |
Current Status | ||||||||||||||||
| CalPeco Electric System | California | GRC | $35.7 | On May 28, 2021, filed an application requesting a revenue increase of $35.7 million for 2022 based on an ROE of 10.5% and on a 54% equity capital structure. CPUC Public Advocates Office issued its report on February 23, 2022 and CalPeco filed its rebuttal testimony in March 2022. In May 2022, a settlement was reached resolving all issues except ROE. The CPUC issued a Final Order on April 27, 2023 authorizing an annual revenue increase of $27.0 million. New rates became effective June 2023 retroactive to January 2022. | ||||||||||||||||
St. Lawrence Gas |
New York | GRC | $4.1 | On November 24, 2021, filed an application requesting a revenue increase of $3.4 million based on an ROE of 10.5% and a capital structure of 50% equity. On January 31, 2022, filed a supplemental filing to update the requested revenue increase to $4.1 million. New York State Department of Public Service Staff filed testimony on June 3, 2022 and St. Lawrence Gas filed rebuttal testimony on June 24, 2022. On March 31, 2023, a joint proposal was filed by the parties resolving all issues. On June 22, 2023, the Commission issued an Order approving the terms of the joint proposal and authorizing a revenue increase of $5.2 million to be implemented over three years. New rates became effective July 1, 2023. |
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| Various | Various | Various | $0.1 | On February 22, 2023, the Arizona Corporation Commission issued an Order approving the proposed consolidation of rates and tariffs for two wastewater utilities and new rates to be effective March 1, 2023. | ||||||||||||||||
| Pending Rate Reviews | ||||||||||||||||||||
| Pine Bluff Water | Arkansas | GRC | $5.9 | On September 30, 2022, filed an application seeking an increase in revenues of $5.9 million based on an ROE of 10.5% and an equity ratio of 52% to be phased in over three years. | ||||||||||||||||
| Empire Electric | Arkansas | GRC | $7.3 | On February 14, 2023, filed an application seeking an increase in revenues of $7.3 million based on an ROE of 10.25% and an equity ratio of 56% to be phased in over three years. | ||||||||||||||||
| New Brunswick Gas | New Brunswick | GRC | -$0.6 | On March 3, 2023, filed a general rate application for a revenue decrease of $0.6 based on the Energy & Utilities Board's recent decisions authorizing a capital structure of 45% equity and an ROE of 9.8%. | ||||||||||||||||
| Granite State Electric | New Hampshire | GRC | $15.5 | On May 5, 2023, filed an application seeking a permanent increase in revenues of $15.5 million and a temporary increase of $6.7 million based on an ROE of 10.35% and an equity ratio of 55%. | ||||||||||||||||
| New York Water | New York | GRC | $39.7 | On May 4, 2023, filed an application seeking an increase in revenues of $39.7 million based on an ROE of 10% and an equity ratio of 50%. | ||||||||||||||||
| EnergyNorth Gas | New Hampshire | GRC | $27.5 | On July 27, 2023, filed an application seeking an increase in revenues of $27.5 million based on an ROE of 10.35% and an equity ratio of 55%. | ||||||||||||||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | |||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | |||||
2023 Second Quarter and Year-to-Date Electricity Generation Performance | |||||||||||||||||||||||||||||||||||
| Long Term Average Resource | Three months ended June 30 | Long Term Average Resource | Six months ended June 30 | ||||||||||||||||||||||||||||||||
| (Performance in GW-hrs sold) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||
| Hydro Facilities: | |||||||||||||||||||||||||||||||||||
| Maritime Region | 62.4 | 47.5 | 56.4 | 89.9 | 78.5 | 82.0 | |||||||||||||||||||||||||||||
| Quebec Region | 82.4 | 80.4 | 92.1 | 138.4 | 144.0 | 149.0 | |||||||||||||||||||||||||||||
| Ontario Region | 29.0 | 26.3 | 31.5 | 67.3 | 59.2 | 56.7 | |||||||||||||||||||||||||||||
| Western Region | 19.0 | 13.8 | 12.1 | 28.6 | 21.8 | 21.1 | |||||||||||||||||||||||||||||
| 192.8 | 168.0 | 192.1 | 324.2 | 303.5 | 308.8 | ||||||||||||||||||||||||||||||
| Canadian Wind Facilities: | |||||||||||||||||||||||||||||||||||
| St. Damase | 16.4 | 17.3 | 16.3 | 37.3 | 33.9 | 39.3 | |||||||||||||||||||||||||||||
| St. Leon | 99.5 | 78.8 | 109.4 | 220.9 | 175.4 | 228.0 | |||||||||||||||||||||||||||||
Red Lily1 |
20.8 | 17.6 | 22.6 | 44.0 | 39.0 | 49.3 | |||||||||||||||||||||||||||||
| Morse | 25.2 | 19.1 | 26.3 | 55.7 | 45.3 | 58.4 | |||||||||||||||||||||||||||||
| Amherst | 53.4 | 43.1 | 52.3 | 118.7 | 103.4 | 120.8 | |||||||||||||||||||||||||||||
Blue Hill2 |
160.2 | 103.2 | 149.7 | 348.4 | 255.4 | 212.2 | |||||||||||||||||||||||||||||
EBR3 |
18.0 | 17.1 | 17.1 | 37.8 | 34.3 | 36.0 | |||||||||||||||||||||||||||||
| 393.5 | 296.2 | 393.7 | 862.8 | 686.7 | 744.0 | ||||||||||||||||||||||||||||||
| U.S. Wind Facilities: | |||||||||||||||||||||||||||||||||||
| Sandy Ridge | 37.7 | 22.8 | 30.7 | 84.8 | 59.0 | 73.4 | |||||||||||||||||||||||||||||
| Minonk | 167.8 | 136.1 | 178.8 | 355.2 | 337.7 | 394.6 | |||||||||||||||||||||||||||||
| Senate | 137.4 | 102.0 | 155.6 | 288.7 | 248.4 | 292.0 | |||||||||||||||||||||||||||||
| Shady Oaks | 92.4 | 80.3 | 83.6 | 200.6 | 180.4 | 194.1 | |||||||||||||||||||||||||||||
Odell4 |
208.2 | 189.5 | 224.4 | 438.7 | 414.4 | 474.2 | |||||||||||||||||||||||||||||
Deerfield4 |
121.1 | 99.5 | 126.8 | 281.5 | 259.6 | 295.8 | |||||||||||||||||||||||||||||
Sugar Creek4 |
175.5 | 146.9 | 161.4 | 378.1 | 350.1 | 370.3 | |||||||||||||||||||||||||||||
| Maverick Creek | 518.0 | 330.0 | 510.3 | 1,021.3 | 789.5 | 956.7 | |||||||||||||||||||||||||||||
Deerfield II5 |
85.8 | 51.6 | — | 94.8 | 58.8 | — | |||||||||||||||||||||||||||||
| 1,543.9 | 1,158.7 | 1,471.6 | 3,143.7 | 2,697.9 | 3,051.1 | ||||||||||||||||||||||||||||||
| Solar Facilities: | |||||||||||||||||||||||||||||||||||
| Cornwall | 5.1 | 5.2 | 5.1 | 7.7 | 7.2 | 7.3 | |||||||||||||||||||||||||||||
| Bakersfield | 26.3 | 22.3 | 23.3 | 39.2 | 32.2 | 35.6 | |||||||||||||||||||||||||||||
| Great Bay | 65.2 | 64.0 | 65.9 | 111.9 | 108.0 | 106.2 | |||||||||||||||||||||||||||||
| Altavista | 54.1 | 49.7 | 51.7 | 90.9 | 83.8 | 86.0 | |||||||||||||||||||||||||||||
| Croton | 1.7 | 1.7 | 1.6 | 2.8 | 2.7 | 2.6 | |||||||||||||||||||||||||||||
Dalewood6 |
0.3 | 0.3 | — | 0.5 | 0.5 | — | |||||||||||||||||||||||||||||
| 152.7 | 143.2 | 147.6 | 253.0 | 234.4 | 237.7 | ||||||||||||||||||||||||||||||
| Renewable Energy Performance | 2,282.9 | 1,766.1 | 2,205.0 | 4,583.7 | 3,922.5 | 4,341.6 | |||||||||||||||||||||||||||||
| Thermal Facilities: | |||||||||||||||||||||||||||||||||||
| Windsor Locks | N/A7 |
26.6 | 29.5 | N/A7 |
57.6 | 64.9 | |||||||||||||||||||||||||||||
| Sanger | N/A7 |
1.0 | 50.2 | N/A7 |
10.4 | 83.5 | |||||||||||||||||||||||||||||
| 27.6 | 79.7 | 68.0 | 148.4 | ||||||||||||||||||||||||||||||||
| Total Performance | 1,793.7 | 2,284.7 | 3,990.5 | 4,490.0 | |||||||||||||||||||||||||||||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 25 |
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| 1 | AQN owns a 75% equity interest but accounts for the facility using the equity method. Figures show full energy produced by the facility. | ||||
| 2 | The Blue Hill Wind Facility achieved COD on April 14, 2022. AQN owns a 20% equity interest but accounts for the facility using the equity method. Figures show expected LTAR and full energy produced by the facility during the quarter. | ||||
| 3 | AQN owns a 50% equity interest but accounts for the facility using the equity method. Figures show full energy produced by the facility during the quarter. |
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| 4 | AQN owns a 51% equity interest in the Sugar Creek, Odell and Deerfield Wind Facilities but consolidates the facilities for accounting purposes. Figures show full energy produced by the facilities during the quarter. | ||||
| 5 | The Deerfield II Wind Facility achieved COD on March 23, 2023. Prior to June 15, 2023, AQN owned a 50% interest in the facility. On June 15, 2023, AQN acquired the remaining 50% interest that it did not previously own. Figures show full energy produced by the facility during the quarter. |
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| 6 | The Dalewood Solar Facility achieved COD on December 21, 2022. | ||||
| 7 | Natural gas fired co-generation facility. | ||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 26 |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 27 |
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2023 Second Quarter and Year-to-Date Renewable Energy Group Operating Results | |||||||||||||||||||||||
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| (all dollar amounts in $ millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Revenue1 |
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| Hydro | $ | 8.8 | $ | 12.3 | $ | 17.0 | $ | 22.8 | |||||||||||||||
| Wind | 46.5 | 57.9 | 102.6 | 115.7 | |||||||||||||||||||
| Solar | 9.4 | 10.4 | 14.7 | 15.8 | |||||||||||||||||||
| Thermal | 7.0 | 11.5 | 16.1 | 23.6 | |||||||||||||||||||
| Total Non-Regulated Energy Sales | $ | 71.7 | $ | 92.1 | $ | 150.4 | $ | 177.9 | |||||||||||||||
| Less: | |||||||||||||||||||||||
Cost of Sales - Energy2 |
(0.3) | (0.6) | (1.4) | (4.2) | |||||||||||||||||||
| Cost of Sales - Thermal | (3.5) | (9.0) | (10.2) | (18.4) | |||||||||||||||||||
Net Energy Sales 3,4 |
$ | 67.9 | $ | 82.5 | $ | 138.8 | $ | 155.3 | |||||||||||||||
Renewable Energy Credits5 |
8.1 | 7.0 | 18.1 | 16.3 | |||||||||||||||||||
| Other Revenue | 1.3 | 0.2 | 2.7 | 0.3 | |||||||||||||||||||
| Total Net Revenue | $ | 77.3 | $ | 89.7 | $ | 159.6 | $ | 171.9 | |||||||||||||||
| Expenses & Other Income | |||||||||||||||||||||||
| Operating expenses | (27.7) | (27.1) | (60.4) | (54.6) | |||||||||||||||||||
Dividend, interest, equity and other income6 |
26.3 | 26.7 | 59.5 | 55.5 | |||||||||||||||||||
HLBV income7 |
14.7 | 32.9 | 38.3 | 67.4 | |||||||||||||||||||
Divisional Operating Profit3,8,9 |
$ | 90.6 | $ | 122.2 | $ | 197.0 | $ | 240.2 | |||||||||||||||
| 1 | Many of the Renewable Energy Group’s PPAs include annual rate increases. However, a change to the weighted average production levels resulting from higher average production from facilities that earn lower energy rates can result in a lower weighted average energy rate earned by the division as compared to the same period in the prior year. |
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| 2 | Cost of Sales - Energy consists of energy purchases in the Maritime Region to manage the energy sales from the Tinker Hydro Facility which is sold to retail and industrial customers under multi-year contracts. | ||||
| 3 | See Caution Concerning Non-GAAP Measures. |
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| 4 | This table contains a reconciliation of Net Energy Sales to revenue. The relevant sections of the table are derived from and should be read in conjunction with the unaudited consolidated statement of operations and Note 18 in the unaudited interim consolidated financial statements, “Segmented information”. This supplementary disclosure is intended to more fully explain disclosures related to Net Energy Sales and provides additional information related to the operating performance of AQN. Investors are cautioned that Net Energy Sales should not be construed as an alternative to revenue. |
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| 5 | Qualifying renewable energy projects receive renewable energy certificates (“RECs”) for the generation and delivery of renewable energy to the power grid. The RECs represent proof that 1 MW-hr of electricity was generated from an eligible energy source. | ||||
| 6 | Includes dividends received from Atlantica and related parties (see Notes 6 and 13 in the unaudited interim consolidated financial statements) as well as the equity investment in the Stella, Cranell, East Raymond and West Raymond Wind Facilities (collectively, the "Texas Coastal Wind Facilities"). |
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| 7 |
HLBV income represents the value of net tax attributes earned by the Renewable Energy Group in the period primarily from electricity generated by certain of its U.S. wind and U.S. solar generation facilities.
PTCs are earned as wind energy is generated based on a dollar per kW-hr rate prescribed in applicable federal and state statutes. For the six months ended June 30, 2023, the Renewable Energy Group's eligible facilities generated 1,813.6 GW-hrs representing approximately $50.8 million in PTCs earned as compared to 2,857.0 GW-hrs representing $74.3 million in PTCs earned during the same period in 2022. The majority of the PTCs have been allocated to tax equity investors to monetize the value to AQN of the PTCs and other tax attributes which are the primary drivers of HLBV income offset by the return earned by the investor. Some PTCs have been utilized directly by the Company which has lowered its overall effective tax rate.
|
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| 8 | Certain prior year items have been reclassified to conform to current year presentation. | ||||
| 9 | This table contains a reconciliation of Divisional Operating Profit to revenue for the Renewable Energy Group. The relevant sections of the table are derived from and should be read in conjunction with the unaudited consolidated statement of operations and Note 18 in the unaudited interim consolidated financial statements, “Segmented Information”. This supplementary disclosure is intended to more fully explain disclosures related to Divisional Operating Profit and provides additional information related to the operating performance of the Renewable Energy Group. Investors are cautioned that Divisional Operating Profit should not be construed as an alternative to revenue. |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 28 |
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| (all dollar amounts in $ millions) | Three months ended June 30 | ||||
Prior Period Divisional Operating Profit1 |
$ | 122.2 | |||
| Existing Facilities and Investments | |||||
| Hydro: Decrease is primarily driven by lower retail sales in the Maritimes Region, and lower production in the Hydro Ontario and Quebec regions. | (1.5) | ||||
| Wind CA: Decrease is primarily due to lower wind resources across the majority of the Canadian wind facilities. | (2.9) | ||||
| Wind U.S.: Decrease is primarily driven by lower wind resources across all the U.S. wind facilities, and lower HLBV income as a result of tax attribute eligibility on projects commissioned in 2012. | (26.4) | ||||
| Solar: Decrease is primarily driven by lower REC revenue at the Great Bay I and Great Bay II Solar Facilities, lower HLBV income for the Great Bay I Solar Facility along with higher operating expenses across the U.S. solar facilities. | (3.2) | ||||
| Thermal: Increase is primarily driven by the overall lower cost of fuel, partially offset by unfavourable energy market pricing at the Windsor Locks Thermal Facility along with lower production at the Sanger Thermal Facility. | 1.6 | ||||
| Investment and Other: Increase is due to higher equity income from the Texas Coastal Wind Facilities. | 1.9 | ||||
| (30.5) | |||||
| New Facilities and Investments | |||||
| Other: | (0.1) | ||||
| (0.1) | |||||
| Foreign Exchange | (1.0) | ||||
Current Period Divisional Operating Profit1 |
$ | 90.6 | |||
| 1 | See Caution Concerning Non-GAAP Measures. |
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| 2 | See Notes 6 and 13 in the unaudited interim consolidated financial statements. |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 29 |
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| (all dollar amounts in $ millions) | Six months ended June 30 | ||||
Prior Period Divisional Operating Profit1 |
$ | 240.2 | |||
| Existing Facilities | |||||
| Hydro: Increase is primarily driven by favourable pricing and REC revenue for the Western Region. | 0.4 | ||||
| Wind CA: Decrease is primarily due to lower wind resources across all Canadian wind facilities. | (5.6) | ||||
| Wind U.S.: Decrease is primarily driven by lower wind resources across all US wind facilities and lower HLBV income as a result of tax attribute eligibility on projects commissioned in 2012 ending. | (35.3) | ||||
| Solar: Decrease is primarily driven by lower REC revenue at the Great Bay I and Great Bay II Solar Facilities, lower energy capture prices at the Altavista and Great Bay II Solar Facilities and lower HLBV income for the Great Bay I Solar Facility. | (6.6) | ||||
| Thermal: Increase is primarily driven by the overall lower cost of fuel at the Windsor Locks Thermal Facility. | 1.0 | ||||
| Investments: Decrease is primarily due to timing of dividends from the Company's investments. | (2.0) | ||||
| Other: Increase is due to higher equity income from the Texas Coastal Wind Facilities. | 7.4 | ||||
| (40.7) | |||||
| New Facilities and Investments | |||||
| Other: | 0.3 | ||||
| 0.3 | |||||
| Foreign Exchange | (2.8) | ||||
Current Period Divisional Operating Profit1 |
$ | 197.0 | |||
| 1 | See Caution Concerning Non-GAAP Measures. |
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| 2 | See Notes 6 and 13 in the unaudited interim consolidated financial statements. |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 30 |
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| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| (all dollar amounts in $ millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
| Corporate and other expenses: | |||||||||||||||||||||||
| Administrative expenses | $ | 25.7 | $ | 20.1 | $ | 43.5 | $ | 37.6 | |||||||||||||||
| Loss on foreign exchange | 6.4 | 4.5 | 7.8 | 4.7 | |||||||||||||||||||
| Interest expense | 89.7 | 64.6 | 171.6 | 122.5 | |||||||||||||||||||
| Depreciation and amortization | 118.4 | 112.5 | 240.1 | 232.5 | |||||||||||||||||||
| Change in value of investments carried at fair value | 311.4 | 143.5 | 132.0 | 184.0 | |||||||||||||||||||
Interest, dividend, equity, and other loss1 |
1.9 | 1.8 | 4.8 | 4.1 | |||||||||||||||||||
| Pension and other post-employment non-service costs | 5.3 | 2.3 | 10.3 | 4.8 | |||||||||||||||||||
| Other net losses | 40.4 | 8.7 | 43.8 | 13.4 | |||||||||||||||||||
| Loss (gain) on derivative financial instruments | (1.0) | 3.3 | (3.2) | 2.6 | |||||||||||||||||||
| Income tax recovery | (56.0) | (22.8) | (31.3) | (13.4) | |||||||||||||||||||
| 1 | Excludes income directly pertaining to the Regulated Services and Renewable Energy Groups (disclosed in the relevant sections). | ||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 31 |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 32 |
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| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| (all dollar amounts in $ millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
| Net earnings (loss) attributable to shareholders | $ | (253.2) | $ | (33.4) | $ | 16.9 | $ | 57.6 | |||||||||||||||
| Add (deduct): | |||||||||||||||||||||||
| Net earnings attributable to the non-controlling interest, exclusive of HLBV | 16.4 | 3.5 | 30.8 | 7.6 | |||||||||||||||||||
| Income tax recovery | (56.0) | (22.8) | (31.3) | (13.4) | |||||||||||||||||||
| Interest expense | 89.7 | 64.6 | 171.6 | 122.5 | |||||||||||||||||||
Other net losses1 |
40.4 | 8.7 | 43.8 | 13.4 | |||||||||||||||||||
| Unrealized loss (gain) on energy derivatives included in revenue | (0.1) | 2.5 | (0.1) | 3.1 | |||||||||||||||||||
| Pension and post-employment non-service costs | 5.3 | 2.3 | 10.3 | 4.8 | |||||||||||||||||||
Change in value of investments carried at fair value2 |
311.4 | 143.5 | 132.0 | 184.0 | |||||||||||||||||||
| Loss (gain) on derivative financial instruments | (1.0) | 3.3 | (3.2) | 2.6 | |||||||||||||||||||
| Loss on foreign exchange | 6.4 | 4.5 | 7.8 | 4.7 | |||||||||||||||||||
| Depreciation and amortization | 118.4 | 112.5 | 240.1 | 232.5 | |||||||||||||||||||
| Adjusted EBITDA | $ | 277.7 | $ | 289.2 | $ | 618.7 | $ | 619.4 | |||||||||||||||
| 1 | See Note 16 in the unaudited interim consolidated financial statements. |
||||
| 2 | See Note 6 in the unaudited interim consolidated financial statements. |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 33 |
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| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| (all dollar amounts in $ millions except per share information) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
| Net earnings (loss) attributable to shareholders | $ | (253.2) | $ | (33.4) | $ | 16.9 | $ | 57.6 | |||||||||||||||
| Add (deduct): | |||||||||||||||||||||||
| Loss (gain) on derivative financial instruments | (1.0) | 3.3 | (3.2) | 2.6 | |||||||||||||||||||
Other net losses1 |
40.4 | 8.7 | 43.8 | 13.4 | |||||||||||||||||||
| Loss on foreign exchange | 6.4 | 4.5 | 7.8 | 4.7 | |||||||||||||||||||
| Unrealized loss (gain) on energy derivatives included in revenue | (0.1) | 2.5 | (0.1) | 3.1 | |||||||||||||||||||
Change in value of investments carried at fair value2 |
311.4 | 143.5 | 132.0 | 184.0 | |||||||||||||||||||
| Adjustment for taxes related to above | (47.7) | (19.5) | (21.2) | (14.7) | |||||||||||||||||||
| Adjusted Net Earnings | $ | 56.2 | $ | 109.6 | $ | 176.0 | $ | 250.7 | |||||||||||||||
| Adjusted Net Earnings per common share | $ | 0.08 | $ | 0.16 | $ | 0.25 | $ | 0.36 | |||||||||||||||
| 1 | See Note 16 in the unaudited interim consolidated financial statements. |
||||
| 2 | See Note 6 in the unaudited interim consolidated financial statements. |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 34 |
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| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| (all dollar amounts in $ millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
| Cash provided by operating activities | $ | 261.4 | $ | 135.3 | $ | 294.7 | $ | 301.6 | |||||||||||||||
| Add (deduct): | |||||||||||||||||||||||
| Changes in non-cash operating items | (112.4) | 36.6 | 53.4 | 84.8 | |||||||||||||||||||
| Production based cash contributions from non-controlling interests | — | 2.5 | 9.1 | 6.2 | |||||||||||||||||||
| Costs related to tax equity financing | 1.2 | — | 1.2 | — | |||||||||||||||||||
| Acquisition-related costs | 4.0 | 5.9 | 9.4 | 8.0 | |||||||||||||||||||
| Adjusted Funds from Operations | $ | 154.2 | $ | 180.3 | $ | 367.8 | $ | 400.6 | |||||||||||||||
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| (all dollar amounts in $ millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
| Regulated Services Group | |||||||||||||||||||||||
Rate Base Maintenance1 |
84.6 | $ | 77.5 | 170.3 | 157.6 | ||||||||||||||||||
| Rate Base Growth | 105.1 | 130.0 | 196.8 | 275.5 | |||||||||||||||||||
Property, Plant & Equipment Acquired2 |
— | — | — | 609.0 | |||||||||||||||||||
| $ | 189.7 | $ | 207.5 | $ | 367.1 | $ | 1,042.1 | ||||||||||||||||
| Renewable Energy Group | |||||||||||||||||||||||
Maintenance1 |
$ | 9.3 | $ | 6.1 | $ | 16.7 | $ | 13.4 | |||||||||||||||
Investment in Capital Projects2 |
187.2 | 12.1 | 215.2 | 32.0 | |||||||||||||||||||
| $ | 196.5 | $ | 18.2 | $ | 231.9 | $ | 45.4 | ||||||||||||||||
| Total Capital Expenditures | $ | 386.2 | $ | 225.7 | $ | 599.0 | $ | 1,087.5 | |||||||||||||||
| 1 | Maintenance expenditures are calculated based on the depreciation expense for the period. | |||||||
| 2 | Includes expenditures on Property, Plant & Equipment, equity-method investees, and acquisitions of operating entities that may have been jointly developed by the Company with another third party developer. Excludes temporary advances to joint venture partners in connection with capital projects under development or construction. | |||||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 35 |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 36 |
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| As at June 30, 2023 | As at December 31, 2022 | ||||||||||||||||||||||||||||
| (all dollar amounts in $ millions) | Corporate | Regulated Services Group | Renewable Energy Group | Total | Total | ||||||||||||||||||||||||
| Revolving and term credit facilities | $ | 1,075.0 | 1 |
$ | 2,389.0 | 2 |
$ | 1,100.0 | 3 |
$ | 4,564.0 | $ | 4,513.3 | ||||||||||||||||
| Funds drawn on facilities/ commercial paper issued | (479.5) | (1,387.6) | (222.5) | (2,089.6) | (1,532.5) | ||||||||||||||||||||||||
| Letters of credit issued | (38.8) | (37.0) | (332.1) | (407.9) | (465.2) | ||||||||||||||||||||||||
| Liquidity available under the facilities | 556.7 | 964.4 | 545.4 | 2,066.5 | 2,515.6 | ||||||||||||||||||||||||
| Undrawn portion of uncommitted letter of credit facilities | (39.7) | — | (267.9) | (307.6) | (226.9) | ||||||||||||||||||||||||
| Cash on hand | 100.3 | 57.6 | |||||||||||||||||||||||||||
| Total Liquidity and Capital Reserves | $ | 517.0 | $ | 964.4 | $ | 277.5 | $ | 1,859.2 | $ | 2,346.3 | |||||||||||||||||||
1 Includes a $75 million uncommitted standalone letter of credit facility. | |||||||||||||||||||||||||||||
2 Includes $178.5 million fully drawn term facilities of Suralis and BELCO as at June 30, 2023 ($163.3 million as at December 31, 2022). | |||||||||||||||||||||||||||||
3 Includes $600 million of uncommitted standalone letter of credit facilities. | |||||||||||||||||||||||||||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 37 |
||||
| Expected Use of Net Proceeds | Actual Use of Net Proceeds | ||||
| As disclosed in the Company’s prospectus supplements dated January 12, 2022 relating to the offerings of the Notes, the Company previously expected that the net proceeds of the offerings of the Notes would be used to partially finance the proposed acquisition of Kentucky Power Company and AEP Kentucky Transmission Company, Inc. (the “Kentucky Power Acquisition”); provided that, in the “short-term”, prior to the closing of the Kentucky Power Acquisition, the Company expected to use the net proceeds to reduce indebtedness as follows: (i) approximately $385.0 million to the Corporate Credit Facility; (ii) approximately $40.0 million to the Renewable Energy Credit Facility; (iii) approximately $415.0 million of commercial paper issued by Liberty Utilities Co. (“Liberty Utilities”); and (iv) approximately $219.9 million to the Long Term Regulated Services Credit Facility. | As a result of the termination of the Kentucky Power Acquisition on April 17, 2023 (the “Kentucky Power Transaction Termination”), the Company’s actual use of the net proceeds from the offerings of the Notes is the reduction of indebtedness in such amounts as previously disclosed as the "short-term" use of the proceeds. | ||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 38 |
||||
| (all dollar amounts in $ millions) | Total | Due in less than 1 year |
Due in 1 to 3 years |
Due in 4 to 5 years |
Due after 5 years |
||||||||||||||||||||||||
Principal repayments on debt obligations1,2 |
$ | 8,109.5 | $ | 1,561.9 | $ | 161.6 | $ | 2,160.2 | $ | 4,225.8 | |||||||||||||||||||
| Advances in aid of construction | 90.1 | 2.0 | — | — | 88.1 | ||||||||||||||||||||||||
Interest on long-term debt obligations2 |
5,137.2 | 318.3 | 531.3 | 436.7 | 3,850.9 | ||||||||||||||||||||||||
| Purchase obligations | 668.6 | 668.6 | — | — | — | ||||||||||||||||||||||||
| Environmental obligations | 46.4 | 4.9 | 21.0 | 1.8 | 18.7 | ||||||||||||||||||||||||
| Derivative financial instruments: | |||||||||||||||||||||||||||||
| Cross currency interest rate swaps | 31.5 | 2.4 | 10.5 | 2.1 | 16.5 | ||||||||||||||||||||||||
| Energy derivative and commodity contracts | 71.1 | 12.3 | 31.1 | 20.2 | 7.5 | ||||||||||||||||||||||||
| Purchased power | 322.0 | 83.6 | 77.1 | 25.0 | 136.3 | ||||||||||||||||||||||||
| Gas delivery, service and supply agreements | 479.8 | 93.7 | 143.6 | 71.4 | 171.1 | ||||||||||||||||||||||||
| Service agreements | 578.7 | 74.0 | 120.5 | 98.6 | 285.6 | ||||||||||||||||||||||||
| Capital projects | 16.5 | 16.5 | — | — | — | ||||||||||||||||||||||||
| Land easements | 572.5 | 14.0 | 28.5 | 29.2 | 500.8 | ||||||||||||||||||||||||
| Contract adjustment payments on equity units | 78.0 | 76.9 | 1.1 | — | — | ||||||||||||||||||||||||
| Other obligations | 311.4 | 30.8 | 6.4 | 5.2 | 269.0 | ||||||||||||||||||||||||
| Total Obligations | $ | 16,513.3 | $ | 2,959.9 | $ | 1,132.7 | $ | 2,850.4 | $ | 9,570.3 | |||||||||||||||||||
| 1 | Exclusive of deferred financing costs, bond premium/discount, and fair value adjustments at the time of issuance or acquisition. | ||||
| 2 | The Company's subordinated unsecured notes have a maturity in 2078, 2079, and 2082, respectively. However, the Company currently anticipates repaying such notes in 2023, 2029, and 2032, respectively, upon exercising its redemption right. | ||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 39 |
||||
| Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Total | ||||||||||||||||
| U.S. dollar dividend | $ | 0.1808 | $ | 0.1085 | $ | 0.1085 | $ | 0.1085 | $0.5063 | |||||||||||
| Canadian dollar equivalent | $ | 0.2438 | $ | 0.1495 | $ | 0.1453 | $ | 0.1460 | $0.6846 | |||||||||||
| Expected Use of Net Proceeds | Actual Use of Net Proceeds | ||||
| As disclosed in the Company’s final short form prospectus dated November 3, 2021 relating to the Bought Deal Offering, the Company expected that the net proceeds of the Bought Deal Offering would be used to partially finance the Kentucky Power Acquisition; provided that, in the “short-term”, prior to the closing of the Kentucky Power Acquisition, the Company expected to use the net proceeds to reduce indebtedness as follows: (i) approximately $267.0 million to the Corporate Credit Facility; (ii) approximately $490.0 million to the Long Term Regulated Services Credit Facility; and (iii) approximately $11.0 million to Liberty Utilities’ commercial paper program. | As a result of the Kentucky Power Transaction Termination, the Company’s actual use of the net proceeds from the Bought Deal Offering is the reduction of indebtedness in such amounts as previously disclosed as the "short-term" use of the proceeds. | ||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 40 |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 41 |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 42 |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 43 |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 44 |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 45 |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 46 |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 47 |
||||
| (all dollar amounts in $ millions except per share information) | 3rd Quarter 2022 | 4th Quarter 2022 | 1st Quarter 2023 | 2nd Quarter 2023 | |||||||||||||||||||
| Revenue | $ | 664.6 | $ | 748.0 | $ | 778.6 | $ | 627.9 | |||||||||||||||
| Net earnings (loss) attributable to shareholders | (195.2) | (74.4) | 270.1 | (253.2) | |||||||||||||||||||
| Net earnings (loss) per share | (0.29) | (0.11) | 0.39 | (0.37) | |||||||||||||||||||
| Diluted net earnings (loss) per share | (0.29) | (0.11) | 0.39 | (0.37) | |||||||||||||||||||
Adjusted Net Earnings1 |
72.8 | 151.0 | 119.9 | 56.2 | |||||||||||||||||||
Adjusted Net Earnings per common share1 |
0.11 | 0.22 | 0.17 | 0.08 | |||||||||||||||||||
Adjusted EBITDA1 |
278.5 | 358.3 | 341.0 | 277.7 | |||||||||||||||||||
| Total assets | 17,653.3 | 17,627.6 | 17,927.1 | 17,968.7 | |||||||||||||||||||
Long term debt2 |
7,705.1 | 7,512.3 | 7,849.2 | 8,083.4 | |||||||||||||||||||
| Dividend declared per common share | $ | 0.18 | $ | 0.18 | $ | 0.11 | $ | 0.11 | |||||||||||||||
| 3rd Quarter 2021 | 4th Quarter 2021 | 1st Quarter 2022 | 2nd Quarter 2022 | ||||||||||||||||||||
| Revenue | $ | 524.4 | $ | 592.0 | $ | 733.2 | $ | 619.4 | |||||||||||||||
| Net earnings (loss) attributable to shareholders | (27.9) | 175.6 | 91.0 | (33.4) | |||||||||||||||||||
| Net earnings (loss) per share | (0.05) | 0.27 | 0.13 | (0.05) | |||||||||||||||||||
| Diluted net earnings (loss) per share | (0.05) | 0.26 | 0.13 | (0.05) | |||||||||||||||||||
Adjusted Net Earnings1 |
96.0 | 137.0 | 141.2 | 109.6 | |||||||||||||||||||
Adjusted Net Earnings per common share1 |
0.15 | 0.21 | 0.21 | 0.16 | |||||||||||||||||||
Adjusted EBITDA1 |
250.3 | 298.3 | 330.5 | 289.2 | |||||||||||||||||||
| Total assets | 16,699.0 | 16,797.5 | 17,669.9 | 17,737.9 | |||||||||||||||||||
Long term debt2 |
6,870.3 | 6,211.7 | 7,191.6 | 7,455.4 | |||||||||||||||||||
| Dividend declared per common share | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.18 | |||||||||||||||
| 1 | See Caution Concerning Non-GAAP Measures. |
||||
| 2 | Includes current portion of long-term debt, long-term debt and convertible debentures. | ||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 48 |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 49 |
||||
All amounts in U.S. $ millions except per share information |
Three months ended June 30 |
Six months ended June 30 |
||||||||||||||||||
| 2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||
| Revenue | $ | 627.9 | $ | 619.4 | 1% | $1,406.5 | $1,352.6 | 4% | ||||||||||||
| Net earnings attributable to shareholders | (253.2) | (33.4) | NM | 16.9 | 57.6 | (71)% | ||||||||||||||
| Per common share | (0.37) | (0.05) | NM | 0.02 | 0.08 | (77)% | ||||||||||||||
| Cash provided by operating activities | 261.4 | 135.3 | 93% | 294.7 | 301.6 | (2)% | ||||||||||||||
Adjusted Net Earnings1 |
56.2 | 109.6 | (49)% | 176.0 | 250.7 | (30)% | ||||||||||||||
| Per common share | 0.08 | 0.16 | (50)% | 0.25 | 0.36 | (31)% | ||||||||||||||
Adjusted EBITDA1 |
277.7 | 289.2 | (4)% | 618.7 | 619.4 | —% | ||||||||||||||
Adjusted Funds from Operations1 |
154.2 | 180.3 | (14)% | 367.8 | 400.6 | (8)% | ||||||||||||||
| Dividends per common share | 0.1085 | 0.1808 | (40)% | 0.2170 | 0.3514 | (38)% | ||||||||||||||
Date: |
Thursday, August 10, 2023 | |||||||
Time: |
8:30 a.m. ET | |||||||
Conference Call: |
Toll Free Dial-In Number | 1( 800) 715-9871 | ||||||
| Toll Dial-In Number | 1 (646) 307-1963 | |||||||
| Conference ID | 2060573 | |||||||
Webcast: |
https://edge.media-server.com/mmc/p/8edd52rm | |||||||
Presentation also available at: www.algonquinpower.com |
||||||||
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| (all dollar amounts in $ millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
| Net earnings (loss) attributable to shareholders | $ | (253.2) | $ | (33.4) | $ | 16.9 | $ | 57.6 | |||||||||||||||
| Add (deduct): | |||||||||||||||||||||||
| Net earnings attributable to the non-controlling interest, exclusive of HLBV | 16.4 | 3.5 | 30.8 | 7.6 | |||||||||||||||||||
| Income tax recovery | (56.0) | (22.8) | (31.3) | (13.4) | |||||||||||||||||||
| Interest expense | 89.7 | 64.6 | 171.6 | 122.5 | |||||||||||||||||||
Other net losses1 |
40.4 | 8.7 | 43.8 | 13.4 | |||||||||||||||||||
| Unrealized loss (gain) on energy derivatives included in revenue | (0.1) | 2.5 | (0.1) | 3.1 | |||||||||||||||||||
| Pension and post-employment non-service costs | 5.3 | 2.3 | 10.3 | 4.8 | |||||||||||||||||||
Change in value of investments carried at fair value2 |
311.4 | 143.5 | 132.0 | 184.0 | |||||||||||||||||||
| Loss (gain) on derivative financial instruments | (1.0) | 3.3 | (3.2) | 2.6 | |||||||||||||||||||
| Loss on foreign exchange | 6.4 | 4.5 | 7.8 | 4.7 | |||||||||||||||||||
| Depreciation and amortization | 118.4 | 112.5 | 240.1 | 232.5 | |||||||||||||||||||
| Adjusted EBITDA | $ | 277.7 | $ | 289.2 | $ | 618.7 | $ | 619.4 | |||||||||||||||
| 1 | See Note 16 in the unaudited interim consolidated financial statements. |
||||
| 2 | See Note 6 in the unaudited interim consolidated financial statements. |
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| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| (all dollar amounts in $ millions except per share information) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
| Net earnings (loss) attributable to shareholders | $ | (253.2) | $ | (33.4) | $ | 16.9 | $ | 57.6 | |||||||||||||||
| Add (deduct): | |||||||||||||||||||||||
| Loss (gain) on derivative financial instruments | (1.0) | 3.3 | (3.2) | 2.6 | |||||||||||||||||||
Other net losses1 |
40.4 | 8.7 | 43.8 | 13.4 | |||||||||||||||||||
| Loss on foreign exchange | 6.4 | 4.5 | 7.8 | 4.7 | |||||||||||||||||||
| Unrealized loss (gain) on energy derivatives included in revenue | (0.1) | 2.5 | (0.1) | 3.1 | |||||||||||||||||||
Change in value of investments carried at fair value2 |
311.4 | 143.5 | 132.0 | 184.0 | |||||||||||||||||||
| Adjustment for taxes related to above | (47.7) | (19.5) | (21.2) | (14.7) | |||||||||||||||||||
| Adjusted Net Earnings | $ | 56.2 | $ | 109.6 | $ | 176.0 | $ | 250.7 | |||||||||||||||
| Adjusted Net Earnings per common share | $ | 0.08 | $ | 0.16 | $ | 0.25 | $ | 0.36 | |||||||||||||||
| 1 | See Note 16 in the unaudited interim consolidated financial statements. |
||||
| 2 | See Note 6 in the unaudited interim consolidated financial statements. |
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| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| (all dollar amounts in $ millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
| Cash provided by operating activities | $ | 261.4 | $ | 135.3 | $ | 294.7 | $ | 301.6 | |||||||||||||||
| Add (deduct): | |||||||||||||||||||||||
| Changes in non-cash operating items | (112.4) | 36.6 | 53.4 | 84.8 | |||||||||||||||||||
| Production based cash contributions from non-controlling interests | — | 2.5 | 9.1 | 6.2 | |||||||||||||||||||
| Costs related to tax equity financing | 1.2 | — | 1.2 | — | |||||||||||||||||||
| Acquisition-related costs | 4.0 | 5.9 | 9.4 | 8.0 | |||||||||||||||||||
| Adjusted Funds from Operations | $ | 154.2 | $ | 180.3 | $ | 367.8 | $ | 400.6 | |||||||||||||||
