Algonquin Power Sees 67% Rise in Fourth-Quarter Earnings, Earmarks $261 Million for 2015 Capex

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Researched by Industrial Info Resources (Sugar Land, Texas)--Canada's Algonquin Power & Utilities Corporation (APUC) (Oakville, Ontario) reported $33.1 million in fourth-quarter 2014 net earnings, up 67% from $19.8 million in the same quarter a year earlier. Fourth-quarter revenue was $259.3 million, compared with $205.3 million a year earlier. APUC cited several factors in the revenue gain, including its acquisition of the New England Gas System, higher customer demand, rate case settlements, increased hydrology and wind resources, and the impact of the stronger U.S. dollar.

For all of 2014, net earnings from continuing operations were $77.8 million, compared with $62.3 million in 2013. Revenues for the year totaled of $943.6 million, up from $675.3 million in 2013.

The company's consolidated capital expenditure plan for 2015 totals $261 million. Capital expenditures in 2014 totaled $432 million.

Industrial Info is tracking 16 APUC projects worth $1.49 billion. This includes 13 Canadian projects, worth more than $1 billion, and three U.S. projects, valued at more than $400 million. Thirteen of the projects, valued at more than $1 billion, are in the planning stages, where a variety of factors could affect their outcome.

Located in Chaplin, Saskatchewan, APUC's grassroot, 177-megawatt (MW) windfarm project has a total investment value of $371 million. Currently under permitting, the windfarm would use Siemens AG (NYSE:SI) (Munich, Germany), General Electric (NYSE:GE) (Fairfield, Connecticut) or equivalent wind turbine generators. Algonquin is working with designer Stantec (NYSE:STN) (Edmondton, Alberta) on the project, which is slated to begin construction in third quarter 2016 and to be completed in fourth-quarter 2017.

APUC Chief Executive Officer Robert Ian said during the company's earnings conference call that the 20-MW Bakersfield I solar project in Kern County, California, has been completed and is now delivering power to the local grid. The project has a total investment value of $58.5 million, according to Industrial info. Also, the 23-MW Morse wind power station in Saskatchewan was advancing, the company said. The Morse project has a total investment value $48.3 million, according to Industrial Info.

In November, APUC announced an agreement with Kinder Morgan Energy Partners (NYSE:KMP) (Houston, Texas) to participate in up to 10% of the Northeast Energy Direct Pipeline project. Capital investments by APUC in the project could reach $400 million. The natural gas transmission pipeline will run between Wright, New York, and Dracut, Massachusetts.

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