Globe & Mail 08:19 AM EST, 12/14/2020 (MT Newswires) -- Algonquin Power & Utilities (AQn.TO) on Monday said it expects to spend US$9.4 billion on capital programs through 2025 to improve the reliability of its power-generation operations and increase its investments in renewable energy as it issued guidance for its 2021 fiscal year.
The company said 70% of its five-year capital budget will go to its Regulated Services Group, with the remainder being spent by its Renewable Energy Group.
Algonquin's renewable portfolio is currently being boosted by the acquisition of a 51% stake in four Texas wind-power facilities producing up to 861 megawatts and an expansion of its Carvers Creek solar project and two Ohio solar projects.
"We believe our organization is well positioned to capitalize on the global growth of infrastructure investments and renewable energy," chief executive Arun Banskota said in a release issued ahead of the company's annual investor day.
The company expects to earn between US$0.71 and US$0.76 per share in its 2021 fiscal year and grow earnings between 8% and 10% annually through 2025. It also reiterated plans to raise its dividend by 10% next year, with payouts in later years tied to its adjusted net earnings.
Algonquin shares closed down C$0.08 to C$20.36 Friday on the Toronto Stock Exchange.
Price: 20.36, Change: -0.08, Percent Change: -0.39