Atlantic Power Seeks Partnership
Feb 28 14
Atlantic Power Corporation (TSX:ATP) is looking for partnership. Executive Vice President, Paul Rapisarda said, “Lastly, I'd like to briefly touch on the US production tax credits. This credit has been an important driver of growth in new energy projects in the US, including in our own wind portfolio. You may recall that the PTC expired at the end of 2012, but was extended to include those projects that were under construction or could show a significant level of commitment by year-end 2013. Some of those projects will be seeking partners, which should create opportunities for us as acquisitions or joint venture candidates, along the lines as Barry discussed earlier.”
Atlantic Power Corporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013; Announces Impairment of Goodwill for the Fourth Quarter Ended December 31, 2013; Provides Earnings Guidance for the Full Year of 2014 and 2015
Feb 27 14
Atlantic Power Corporation announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2013. For the quarter, the company reported project revenue of $551.7 million against $440.1 million a year ago. Project income was $64.3 million against project loss of $29.4 million a year ago. Loss from continuing operations before income taxes was $37.1 million against $142.3 million a year ago. Loss from continuing operations was $17.6 million or $0.23 per basic and diluted share against $114.2 million or $1.09 per basic and diluted share a year ago. Net loss was $23.8 million against $100.3 million a year ago. Net loss attributable to the parent company was $33.0 million, $0.28 per basic and diluted share against $112.8 million or $0.97 per basic and diluted share a year ago. Project adjusted EBITDA was $57.2 million against $56.9 million a year ago. CapEx in the fourth quarter was also slightly lower than had expected.
For the year, the company reported project revenue of $130.7 million against $114.0 million a year ago. Project income was $7.2 million against project loss of $5.8 million a year ago. Loss from continuing operations before income taxes was $9.4 million against $28.7 million a year ago. Income from continuing operations was $8.2 million or $0.04 per basic and diluted share against loss from continuing operations of $19.7 million or $0.20 per basic and diluted share a year ago. Net income was $8.0 million against net loss of $54.5 million a year ago. Net income attributable to the parent company was $4.9 million, $0.04 per basic and diluted share against net loss attributable to the parent company of $58.0 million, or $0.50 per basic and diluted share a year ago. Cash provided by operating activities was $152.4 million against $167.1 million a year ago. Purchase of property, plant and equipment was $6.5 million against $2.9 million a year ago. Project adjusted EBITDA was $270.5 million against $227.6 million a year ago. Key drivers of the increase include full year of operations and improved performance at Piedmont, favorable changes to PPA and gas contracts at Orlando, expected increase from the companies Meadow Creek and hydro projects due to assumed normal generation levels, which would generally be better than the levels experienced in 2013.
The company announced impairment of goodwill of $34.9 million for the fourth quarter ended December 31, 2013.
In 2014, the company expects growth of 8% in project adjusted EBITDA, including an initial contribution from investments made last year to optimize the performance of the projects. Project adjusted EBITDA is expected to be $280 to $305 million. Free cash flow is expected to be in the range of $0 - $25 million. The decrease of approximately $96 million, based on the midpoint of the range for 2014 Free cash flow, compared to $108.8 million of cash available for distribution in 2013 is attributable to several factors, including: lower operating cash flow, primarily from the loss of more than $30 million of cash flow from assets divested in April 2013 and $38 million from working capital items that benefited 2013, but are not expected to recur in 2014; $12 million of higher capex; and debt repayments under the APLP term loan, including 1% mandatory amortization and 50% sweep of APLP's cash flow after capex and debt service (estimated to total $52 million in 2014). These reductions are partly offset by increased project adjusted EBITDA and lower interest expense in 2014, excluding the prepayments and additional interest expense associated with the refinancing transaction, which are excluded from free cash flow. In 2014, the company expects to have project capital expenditures and major maintenance expenses of approximately $38 million, including optimization investments of $18 million. Total expenditures are expected to be slightly lower than the $41 million in 2013 despite a higher level of optimization-related spending because there is lower major maintenance this year as a result of fewer scheduled gas turbine outages. Projected debt at year-end 2014 will be $1,898 million.
In 2015, the company expects to produce a run-rate project adjusted EBITDA contribution of at least $8 million.
Atlantic Power Corporation Declares Common Share Dividend for the Month of February 2014, Payable on March 31, 2014
Feb 14 14
Atlantic Power Corporation announced its distribution for the month of February 2014. A dividend of CAD 0.03333 per common share will be payable on March 31, 2014 to holders of record at the close of business on February 28, 2014. The company designates its entire dividend to be an eligible dividend pursuant to subsection 89(14) of the Income Tax Act (Canada) and its equivalent in any provinces of Canada.