calculated with share price at today's close of 14.30$................(ACI on TSX).
Calgary, Alberta (October 31, 2018) – AltaGas Canada Inc. (“ACI”) (TSX: ACI) today announced third quarter 2018 financial results for the period ended September 30, 2018.
Highlights:
- With the completion of ACI’s Initial Public Offering (“IPO”), ACI is set to deliver on continued rate base growth at its Utilities;
- ACI expects to deliver a compound annual growth rate of five percent on net income to its shareholders from 2019 through to 2023;
- Combined Utilities rate base grew to approximately $850 million as at September 30, 2018. ACI has a robust growth capital program in place for the remainder of 2018 with approximately $330 million planned between 2019 - 2023;
- By 2023, ACI expects its combined Utility rate base will grow to over $1 billion; and
- The Board of Directors declared its first dividend of $0.1744 for the period of October 25, 2018 to December 31, 2018, which on an annualized basis would yield $0.95 per common share.
In the third quarter of 2018, normalized EBITDA1 was $15.9 million compared to $16.5 million for the same period in 2017. Third quarter 2018 net income after taxes was $0.5 million compared to $1.9 million for the same period in 2017. The results were driven primarily by ACI’s Utilities which delivered rate base and customer growth and also benefitted from colder weather, offset by lower wind generation at the Bear Mountain Wind Park and lower results from the Northwest Hydro Facilities due to unseasonably cool, dry weather.
ACI completed its initial public offering on October 25, 2018 and as such, these results are attributable to AltaGas Ltd. and may not be directly comparable to future results primarily due to the change in ACI’s capital structure.
“With the IPO successfully completed and a solid asset base in place, we are focused on bringing value to our shareholders,” said Jared Green, President and Chief Executive Officer of ACI. “As we look forward to the next five years, we are confident in our ability to deliver a five percent compound annual growth rate on net income. We are also pleased to announce that the Board of Directors declared our very first dividend.”
2018 Capital Program
For nine months ended September 30, 2018, ACI’s net invested capital was $47.5 million. For the full year 2018 ACI expects to spend approximately $80 million across its Utilities.
Between 2019 and 2023, ACI expects to spend approximately $330 million at its Utilities and expects to grow rate base to over $1 billion. ACI expects to fund this capital program utilizing internally generated cash flow and a small amount of incremental debt.
ACI Dividend Declaration
The Board of Directors of ACI declared a dividend of $0.1744 per common share, payable on December 31, 2018 to shareholders of record at the close of business on or about November 30, 2018. This dividend is an eligible dividend for Canadian income tax purposes.
About ACI
ACI is a Canadian company with natural gas distribution utilities and renewable power generation assets. ACI serves approximately 130,000 customers, delivering low carbon energy, safely and reliably. For more information visit: www.altagascanada.ca.
For Further Information Contact:
Jess Nieukerk
587-955-3660
jnieukerk@altagascanada.ca