07:56 AM EST, 01/12/2023 (MT Newswires) -- Algonquin Power & Utilities Corp. (AQN.TO), down 5.4% in US pre-market trading, said Thursday that effective for its first quarter 2023 dividend (payable in April), the company will lower its quarterly dividend from $0.1808 to $0.1085 per common share. The company will also suspend its dividend reinvestment plan (DRIP) for its common shares. Effective for the Q1 2023 dividend, shareholders participating in the DRIP will receivie cash dividends. If the company reinstates the DRIP in the future, shareholders who were enrolled in the DRIP at its suspension and remain enrolled at reinstatement will automatically resume participation in the DRIP.
AQN is still pursueing the Kentucky Power acquisition, even though on December 15, 2022, the U.S. Federal Energy Regulatory Commission (FERC) denied approval of the Acquisition as filed. The parties plan to continue to seek FERC approval of the Kentucky Power acquisition.
AQN intends to refocus its portfolio by targeting $1 billion of additional asset sales. Proceeds from the next phase of renewable asset recycling and additional asset sales are expected to be used to pay down debt and continue to fund growth.
AQN expects Adjusted EPS, excluding gains or losses on asset sales, of $0.55 to $0.61 for the 2023 fiscal year.
All dollar amounts referenced are in U.S. dollars.
CEO Arun Banskota said, "We have reached an inflection point and, as markets continue to evolve, we must address the challenges facing the business." He said the company remains "committed to our long-term energy transition strategy, including the pursuit of the Kentucky Power Acquisition, which we expect will add to our rate base, grow customer connections and provide further decarbonization opportunities."
The stronger financial foundation is expected to position the company to maintain a BBB credit rating.