RE:from the Jan. 12th update call uncertainty around longer term payout ratio...with all these future uncertainties and "very carefully constructed" past decisions can any shareholder have any degree of confidence going forward... it's no wonder the share price is where it is..
Nelson NgAnalyst, RBC Capital Markets
"Great. Thanks. And good morning, everyone. First question just relates to your payout ratio. So obviously your
new dividend level implies a $0.75 payout ratio on your 2023 guidance. So if we assume that there is $1 billion of
asset sales like that will obviously reduce your like pro forma earnings and that would, I presume, materially
increase your pro forma payout ratio. So can you just talk about your long-term payout ratio expectations? I know
previously you were targeting a 80% to 90% payout. Is 75% the new long-term target and can you just talk about
your pro forma payout ratio after the asset sales?
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Darren G. Myers
Chief Financial Officer, Algonquin Power & Utilities Corp.
Yeah. Hi, Nelson. I mean, it's a great question. One I'd love to give you an answer, but there's a lot of moving
parts right now. What I will tell you is we have been very purposeful in terms of how we've set that looking
internally at the payout ratio on the regulated side, looking at the free cash flow yields on the renewable side. So
we've said it looking at a number of factors. We're not going to disclose it today. But I just want to emphasize
again, it's been very carefully constructed. We would plan to grow it in line with our adjusted earnings. And over
time, as we get more certainty, we'll share more information on the power rate payout ratios and where we expect
to be."
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