Algonquin Power & Utilities, a Canadian renewable energy and regulated utility conglomerate, has announced a narrower loss for the reported period. However, the company experienced a larger-than-expected decline in revenue due to unfavorable weather conditions and higher interest rates.
In the comparable quarter of the previous year, Algonquin Power & Utilities reported a loss of $195.2 million ($0.29 per share). This year, the loss narrowed to $174.5 million ($0.26 per share). Analysts had predicted a slight increase in earnings to $0.12 per share, according to FactSet.
The company's revenue also fell from $664.4 million to $624.7 million. While analysts were expecting a decline, they anticipated a more modest decrease to $643.9 million.
Despite these challenges, Algonquin Power & Utilities highlighted positive growth from their rate cases and new development projects. However, this progress was partially offset by unfavorable weather conditions, which affected the company's renewable operating performance, as well as higher interest rates during the reporting period.
Following a strategic review that began on May 11, Algonquin has expressed its intention to sell its renewable energy group. This decision is aimed at unlocking the company's value as a pure-play regulated utility, simplifying its structure, and allowing for a greater focus on lower-risk regulated investment opportunities, along with improved operational efficiency and capital discipline.
Algonquin's interim chief executive, Chris Huskilson, emphasized the company's commitment to achieving appropriate valuation for the segment.
