Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Algonquin Power & Utilities Corp T.AQN

Alternate Symbol(s):  AQN | T.AQN.PR.A | T.AQN.PR.D | AGQPF

Algonquin Power & Utilities Corp. is a Canada-based diversified international generation, transmission, and distribution company. The Company through its two business groups, the Regulated Services Group, and the Renewable Energy Group, provides sustainable energy and water solutions through its portfolio of electric generation, transmission, and distribution utility investments to over one million customer connections, largely in the United States and Canada. The Company is engaged in renewable energy through its portfolio of long-term contracted wind, solar, and hydroelectric generating facilities. The Company owns, operates, and/or has net interests in over four gigawatts (GW) of installed renewable energy capacity. The Company is focused on its expanding global pipeline of renewable energy and electric transmission development projects, organic growth within its rate-regulated generation, distribution and transmission businesses, and the pursuit of accretive acquisitions.


TSX:AQN - Post by User

Post by bmbruceon Nov 11, 2018 9:00pm
132 Views
Post# 28957809

RBC

RBCAlgonquin Power & Utilities Corp. Steady as she goes; reiterating Outperform Our view: After an in-line quarter, our thesis has not changed. We continue to believe the shares of Algonquin will outperform its peers due to its attractive historic and future growth profile, pursuing opportunities in regulated utility and contracted power divisions, and contracted international developments indirectly through Atlantica Yield. Key points: International investment opportunities ramping up. Management noted that an agreement had been reached for Atlantica Yield to participate in the Peru transmission development, with the transfer of the project to Atlantica Yield following completion (FID expected in Q4/18). Beyond that, management indicated that its AAGES development JV is pursuing water desalination in California and North Africa, and wind projects in Uruguay. We note that even if AAGES is very successful in international opportunities, it will remain a relatively small contributor to Algonquin's financial results. Management sees minimal risk from Gaia Power's claim. On October 30, a junior renewable developer (Gaia Power) commenced an action in the Ontario Superior Court of Justice against Algonquin, claiming damages of C$345 million and punitive damages of C$25 million. The action arises from Gaia Power's 2010 sale of certain proposed wind farms to Algonquin (namely Chaplin and Amherst wind), with Gaia Power entitled to ~1% royalty payments (subject to offsets) if the projects are developed and achieve certain agreed targets. According to management, they fully intend to pay the royalties (subject to offsets), which we estimate is less than C$0.5 million per year for the Amherst wind project. Upcoming Investor Day should provide additional details supporting its strong growth profile. Algonquin will be hosting its annual Investor Day in Toronto and New York on December 4 and 5, respectively. We expect management will provide an updated 5-year outlook that should support a 10%+ growth profile without relying on M&A. Management indicated that they would provide additional colour on the opportunities it is pursuing through its AAGES development JV. We believe management will also provide an update on its North American wind and solar development pipeline and also better visibility on HLBV income (related to tax equity). Keeping estimates unchanged. We have maintained our 2018/19/20 FFO/ share estimates at $1.16, $1.15, and $1.24, respectively. We have updated our forecast to reflect the in-line Q3/18 results, higher contribution from the Generation division, offset by higher interest expense
Bullboard Posts