Capital Power Corporation (TSX: CPX) today released financial
results for the quarter and year ended December 31, 2022.
Financial Highlights
- In the fourth quarter of 2022, generated:
- net cash flows from operating activities of $42 million and
adjusted funds from operations (AFFO) of $140 million
- adjusted EBITDA of $303 million and a net loss of $99
million
- For 2022, generated:
- net cash flows from operating activities of $935 million and
AFFO of $848 million
- adjusted EBITDA of $1,353 million and a net income of $128
million
Strategic Highlights
- Announced a limited notice to proceed for the Genesee Carbon
Capture and Sequestration (CCS) Project
- Completed the 75-megawatt Clydesdale Solar project on-schedule
with commercial operations beginning in December
- Executed a 15-year renewable energy agreement with Shaw
Communications for approximately 30 MW of the output and
environmental attributes from Clydesdale Solar
- Executed a 23-year clean electricity supply agreement with
Public Services and Procurement Canada for power and renewable
energy credits in the first two years followed by renewable energy
from the proposed Halkirk 2 Wind project for the remainder of the
contract term
“We made great strides in 2022 on our decarbonization strategy
and commitment to being off coal in 2023,” said Brian Vaasjo,
President and CEO of Capital Power. “This includes significant
progress on our Genesee repowering project that is on schedule to
meet our off-coal commitment by the end of this year. Once
completed, Genesee 1 and 2 will have significantly reduced carbon
emissions and will be the most efficient natural gas units in
Canada, solidifying their dominant baseload position in the Alberta
power market. We also completed modifications to Genesee 3 to
operate as a 100% natural gas facility following the closure of the
Genesee Mine in late 2023.”
“We are advancing technologies to enable a clean power system
with abated natural gas to achieve net zero by 2045,” continued Mr.
Vaasjo. “In December, we announced a limited notice to proceed on
the Genesee CCS project, which reflects positive results from the
ongoing front-end engineering design (FEED) study and continued
progress on financial support from the Alberta and Federal
governments. CCS is an essential part of the pathway to
accelerating and achieving decarbonization of Alberta's power
sector while maintaining reliability and affordability. As we move
into the next stage of final due diligence and commercial,
financing, and technical assessment, we expect to announce a final
investment decision later this year.”
“Our growth outlook remains excellent given political support
for renewable energy both in the United States and in Canada and
we’re well-positioned for potential uprates, expansion and contract
extensions for our three natural gas facilities in Ontario in
response to the 4,000 megawatts of incremental capacity required in
the province. We are targeting $600 million in committed capital
for growth in 2023 and expect to make an investment decision on two
renewable projects,” stated Mr. Vaasjo.
“We delivered record financial performance in 2022 that
benefitted from elevated Alberta spot power prices that averaged
$162 per megawatt hour (MWh) in the year, the acquisition of the
Midland Cogeneration facility, and strong contributions across the
fleet,” said Sandra Haskins, Senior Vice President, Finance and
CFO. “We generated $1,353 million in adjusted EBITDA and $848
million in AFFO that exceeded our higher revised financial guidance
and were 17% and 35% above the top end of our original targets,
respectively.”
“2023 started with one of the warmest winters in history,
driving settled power prices well below expectations. As a result,
average forward power prices for the year have modestly declined
resulting in Capital Power trending towards the lower end of our
adjusted EBITDA and AFFO guidance ranges of $1,455 million to
$1,515 million and $805 million to $865 million, respectively.
Going forward we expect to see similar market volatility as we have
seen in recent years and given our competitive fleet of Alberta
assets, we are well positioned to capitalize on these
opportunities. We will provide further updates with our first
quarter 2023 results,” added Ms. Haskins.
Operational and Financial Highlights1
|
(unaudited, $ millions, except per share amounts) |
Three months ended December 31 |
Year ended December 31 |
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
Electricity generation (Gigawatt hours) |
8,049 |
|
6,103 |
|
28,573 |
|
22,811 |
|
|
Generation facility availability |
90% |
|
89% |
|
93% |
|
90% |
|
|
Revenues and other income |
929 |
|
672 |
|
2,929 |
|
1,990 |
|
|
Adjusted EBITDA 2 |
303 |
|
294 |
|
1,353 |
|
1,124 |
|
|
Net income (loss) 3 |
(99 |
) |
(69 |
) |
128 |
|
87 |
|
|
Net income (loss) attributable to shareholders of the Company |
(98 |
) |
(65 |
) |
138 |
|
98 |
|
|
Basic earnings (loss) per share ($) |
(0.91 |
) |
(0.67 |
) |
0.85 |
|
0.39 |
|
|
Diluted earnings (loss) per share ($) |
(0.91 |
) |
(0.67 |
) |
0.84 |
|
0.39 |
|
|
Normalized earnings attributable to common shareholders 2 |
82 |
|
55 |
|
424 |
|
221 |
|
|
Normalized earnings per share ($) 2 |
0.70 |
|
0.47 |
|
3.64 |
|
1.97 |
|
|
Net cash flows from operating activities |
42 |
|
185 |
|
935 |
|
867 |
|
|
Adjusted funds from operations 2 |
140 |
|
149 |
|
848 |
|
605 |
|
|
Adjusted funds from operations per share ($) 2 |
1.20 |
|
1.28 |
|
7.28 |
|
5.40 |
|
|
Purchase of property, plant and equipment and other assets,
net |
179 |
|
198 |
|
682 |
|
622 |
|
|
Dividends per common share, declared ($) |
0.5800 |
|
0.5475 |
|
2.2550 |
|
2.1200 |
|
- The operational and financial highlights in this press release
should be read in conjunction with the Management’s Discussion and
Analysis and the audited consolidated financial statements for year
ended December 31, 2022.
- Earnings before net finance expense, income tax expense,
depreciation and amortization, impairments, foreign exchange gains
or losses, finance expense and depreciation expense from joint
venture interests, gains or losses on disposals and unrealized
changes in fair value of commodity derivatives and emissions
credits (adjusted EBITDA), normalized earnings attributable to
common shareholders and adjusted funds from operations (AFFO) are
used as non-GAAP financial measures by the Company. The Company
also uses normalized earnings per share and AFFO per share which
are non-GAAP ratios. These measures and ratios do not have
standardized meanings under GAAP and are, therefore, unlikely to be
comparable to similar measures used by other enterprises. See
Non-GAAP financial measures and ratios.
- Includes depreciation and amortization for the three months
ended December 31, 2022 and 2021 of $139 million and $137 million,
respectively, and for the year ended December 31, 2022 and 2021 of
$553 million and $539 million, respectively. Budgeted depreciation
and amortization for 2023 is $135 million per quarter.
Significant Events
Clydesdale Solar begins commercial operations and
executed a second 15-year renewable energy agreement
An additional 75 MW from Clydesdale Solar (formerly
Enchant Solar), located in the Municipal District of Taber,
Alberta, began commercial operations on December 13, 2022. The
total project cost is expected to be $124 million compared to the
original budget of $102 million due to supply chain pressures and
increases in transportation costs.
Capital Power executed a 15-year renewable energy agreement with
Shaw Communications for approximately 30 MW of the output and
environmental attributes. Combined with a previously announced
renewable energy agreement with Labatt Breweries of Canada,
Clydesdale Solar is approximately 90% contracted over the next 15
years.
Advancement of carbon capture project at
Genesee
On December 1, 2022, we announced that our Board of Directors
approved a limited notice to proceed (LNTP) for the Genesee Carbon
Capture and Sequestration (CCS) Project. The Genesee CCS Project is
positioned for a final investment decision in late 2023 with
commercial operations as early as 2027.
On June 27, 2022, we announced our collaboration with Mitsubishi
Heavy Industries Group and Kiewit Energy Group on a front-end
engineering and design (FEED) study for the Genesee CCS Project
advancing the commercial application of CCS technology at our
Genesee Generating Station.
$2 million contribution to Boyle Street Community
Services
On November 1, 2022, Capital Power announced a $2 million
contribution to the Build with Boyle initiative to help fund Boyle
Street Community Services’ (Boyle Street) okimaw peyesew kamik
facility in Edmonton. The purpose-built facility will serve as a
base for Boyle Street’s lifechanging support services for the
community’s most vulnerable citizens. Capital Power’s contribution
is dedicated to funding the new facility’s community kitchen and
on-site housing needs.
Genesee 3 completes 100% natural gas capability
upgrades
On November 12, 2022 Genesee 3 completed necessary modifications
to operate as a 100% natural gas capable facility. Upon the closure
of the Genesee Mine in late 2023, Genesee 3 will operate solely on
natural gas.
Genesee 2 approved for 20 MW of additional
capacity
On October 1, 2022, 20 MW of additional capacity at Genesee 2
was approved by the AESO increasing its capacity to 450 MW. The
additional capacity is a result of stator and low-pressure rotor
replacements associated with the 2021 outage.
Subsequent Event
Executed 23-year clean electricity supply agreement for
Halkirk 2 Wind
On February 3, 2023, we announced a 23-year clean electricity
supply agreement with Public Services and Procurement Canada. The
Agreement will provide approximately 250,000 MWh of clean
electricity per year initially through Canada-sourced renewable
energy credits until Capital Power’s proposed Alberta-based Halkirk
2 Wind project is completed, which is expected to be operational by
January 1, 2025 (subject to regulatory approval). The 151 MW
Halkirk 2 Wind project will provide renewable energy for the
remainder of the term – representing approximately 49% of the
facility’s output. As part of the transaction, Capital Power
committed to securing an equity partnership with local Indigenous
communities related to the proposed project.
Analyst conference call and webcast
Capital Power will be hosting a conference call and live webcast
with analysts on March 1, 2023 at 9:00 am (MT) to discuss the
fourth quarter and year end financial results. The conference call
dial-in number is:
(800) 319-4610 (toll-free from Canada
and USA)
Interested parties may also access the live webcast on the
Company’s website at www.capitalpower.com with an archive of the
webcast available following the conclusion of the analyst
conference call.
Non-GAAP Financial Measures and Ratios
The Company uses (i) adjusted EBITDA, (ii) AFFO, and (iii)
normalized earnings attributable to common shareholders as
financial performance measures.
The Company also uses AFFO per share and normalized earnings per
share as performance measures. These measures are non-GAAP ratios
determined by applying AFFO and normalized earnings attributable to
common shareholders, respectively, to the weighted average number
of common shares used in the calculation of basic and diluted
earnings per share.
These terms are not defined financial measures according to GAAP
and do not have standardized meanings prescribed by GAAP and,
therefore, are unlikely to be comparable to similar measures used
by other enterprises. These measures should not be considered
alternatives to net income, net income attributable to shareholders
of the Company, net cash flows from operating activities or other
measures of financial performance calculated in accordance with
GAAP. Rather, these measures are provided to complement GAAP
measures in the analysis of the Company’s results of operations
from management’s perspective.
Adjusted EBITDA
Capital Power uses adjusted EBITDA to measure the operating
performance of facilities and categories of facilities from period
to period. Management believes that a measure of facility operating
performance is more meaningful if results not related to facility
operations such as impairments, foreign exchange gains or losses,
gains or losses on disposals and other transactions, and unrealized
changes in fair value of commodity derivatives and emission credits
are excluded from the adjusted EBITDA measure.
A reconciliation of adjusted EBITDA to net income (loss) is as
follows:
|
(unaudited, $ millions) |
Year endedDecember 31 |
Three months ended |
|
|
2022 |
|
2021 |
|
Dec2022 |
|
Sep2022 |
|
Jun2022 |
|
Mar2022 |
|
Dec2021 |
|
Sep2021 |
|
Jun2021 |
|
Mar2021 |
|
|
Revenues and other income |
2,929 |
|
1,990 |
|
929 |
|
786 |
|
713 |
|
501 |
|
672 |
|
377 |
|
387 |
|
554 |
|
|
Energy purchases and fuel, other raw materials and operating
charges, staff costs and employee benefits expense, and other
administrative expense |
(2,059 |
) |
(1,108 |
) |
(909 |
) |
(543 |
) |
(429 |
) |
(178 |
) |
(506 |
) |
(162 |
) |
(176 |
) |
(264 |
) |
|
Remove unrealized changes in fair value of commodity derivatives
and emission credits included within revenues and energy purchases
and fuel |
429 |
|
220 |
|
247 |
|
136 |
|
28 |
|
18 |
|
123 |
|
66 |
|
24 |
|
7 |
|
|
Adjusted EBITDA from joint ventures 1 |
54 |
|
22 |
|
36 |
|
4 |
|
7 |
|
7 |
|
5 |
|
5 |
|
6 |
|
6 |
|
|
Adjusted EBITDA |
1,353 |
|
1,124 |
|
303 |
|
383 |
|
319 |
|
348 |
|
294 |
|
286 |
|
241 |
|
303 |
|
|
Depreciation and amortization |
(553 |
) |
(539 |
) |
(139 |
) |
(133 |
) |
(139 |
) |
(142 |
) |
(137 |
) |
(133 |
) |
(132 |
) |
(137 |
) |
|
Unrealized changes in fair value of commodity derivatives and
emission credits |
(429 |
) |
(220 |
) |
(247 |
) |
(136 |
) |
(28 |
) |
(18 |
) |
(123 |
) |
(66 |
) |
(24 |
) |
(7 |
) |
|
Impairment (losses) reversals |
- |
|
(58 |
) |
- |
|
- |
|
- |
|
- |
|
(52 |
) |
(8 |
) |
2 |
|
- |
|
|
(Losses) gains on disposals and other transactions |
(37 |
) |
36 |
|
(33 |
) |
(3 |
) |
(1 |
) |
- |
|
6 |
|
31 |
|
(3 |
) |
2 |
|
|
Foreign exchange (loss) gain |
(15 |
) |
(9 |
) |
3 |
|
(12 |
) |
(7 |
) |
1 |
|
(1 |
) |
(7 |
) |
(2 |
) |
1 |
|
|
Net finance expense |
(156 |
) |
(174 |
) |
(44 |
) |
(40 |
) |
(35 |
) |
(37 |
) |
(44 |
) |
(43 |
) |
(46 |
) |
(41 |
) |
|
Other items1,2 |
(22 |
) |
(13 |
) |
(17 |
) |
(4 |
) |
(1 |
) |
- |
|
(4 |
) |
(4 |
) |
(5 |
) |
- |
|
|
Income tax (expense) recovery |
(13 |
) |
(60 |
) |
75 |
|
(24 |
) |
(31 |
) |
(33 |
) |
(8 |
) |
(18 |
) |
(14 |
) |
(20 |
) |
|
Net income (loss) |
128 |
|
87 |
|
(99 |
) |
31 |
|
77 |
|
119 |
|
(69 |
) |
38 |
|
17 |
|
101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
(10 |
) |
(11 |
) |
(1 |
) |
(3 |
) |
(3 |
) |
(3 |
) |
(4 |
) |
(2 |
) |
(3 |
) |
(2 |
) |
|
Shareholders of the Company |
138 |
|
98 |
|
(98 |
) |
34 |
|
80 |
|
122 |
|
(65 |
) |
40 |
|
20 |
|
103 |
|
|
Net income (loss) |
128 |
|
87 |
|
(99 |
) |
31 |
|
77 |
|
119 |
|
(69 |
) |
38 |
|
17 |
|
101 |
|
- Total income from joint ventures as per the Company’s
consolidated statements of income.
- Includes finance expense, unrealized changes in fair value of
commodity derivatives and depreciation expense from joint
ventures.
Adjusted funds from operations and adjusted funds from
operations per share
AFFO and AFFO per share are measures of the Company’s ability to
generate cash from its operating activities to fund growth capital
expenditures, the repayment of debt and the payment of common share
dividends.
AFFO represents net cash flows from operating activities
adjusted to:
- remove timing impacts of cash receipts and payments that may
impact period-to-period comparability which include deductions for
net finance expense and current income tax expense, the removal of
deductions for interest paid and income taxes paid and removing
changes in operating working capital,
- include the Company’s share of the AFFO of its joint venture
interests and exclude distributions received from the Company’s
joint venture interests which are calculated after the effect of
non-operating activity joint venture debt payments,
- include cash from off-coal compensation that will be received
annually,
- remove the tax equity financing project investors’ shares of
AFFO associated with assets under tax equity financing structures
so only the Company’s share is reflected in the overall
metric,
- deduct sustaining capital expenditures and preferred share
dividends,
- exclude the impact of fair value changes in certain unsettled
derivative financial instruments that are charged or credited to
the Company’s bank margin account held with a specific exchange
counterparty,
- include net expected cash outflows for the Company’s share of
Line Loss Rule (LLR) Proceeding amounts in the period each tranche
is paid by the Company, and
- exclude other typically non-recurring items affecting cash from
operations that are not reflective of the long-term performance of
the Company’s underlying business.
Commencing with the Company’s December 31, 2022 quarter-end, the
Company refined its AFFO measure to better reflect the purpose of
the measure and include in its adjustment to exclude other
typically non-recurring items affecting cash from operations that
are not reflective of the long-term performance of the Company’s
underlying business. Comparative AFFO figures have not been
restated for this change.
A reconciliation of net cash flows from operating activities to
adjusted funds from operations is as follows:
|
(unaudited, $ millions) |
Year ended December 31 |
Three months ended December 31 |
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
Net cash flows from operating activities per consolidated
statements of cash flows |
935 |
|
867 |
|
42 |
|
185 |
|
|
Add (deduct) items included in calculation of net cash flows from
operating activities per consolidated statements of cash
flows: |
|
|
|
|
|
|
|
|
|
Interest paid |
89 |
|
111 |
|
13 |
|
13 |
|
|
Realized gains on settlement of hedged interest rate
derivatives |
(27 |
) |
(12 |
) |
- |
|
- |
|
|
Change in fair value of derivatives reflected as cash
settlement |
213 |
|
43 |
|
153 |
|
26 |
|
|
Distributions received from joint ventures |
(16 |
) |
(11 |
) |
(10 |
) |
(3 |
) |
|
Miscellaneous financing charges paid 1 |
7 |
|
5 |
|
2 |
|
1 |
|
|
Income taxes paid (recovered) |
37 |
|
(7 |
) |
13 |
|
6 |
|
|
Change in non-cash operating working capital |
(179 |
) |
(100 |
) |
(28 |
) |
5 |
|
|
|
124 |
|
29 |
|
143 |
|
48 |
|
|
Net finance expense 2 |
(111 |
) |
(121 |
) |
(31 |
) |
(28 |
) |
|
Current income tax expense 3 |
(40 |
) |
(44 |
) |
(1 |
) |
(25 |
) |
|
Sustaining capital expenditures 4 |
(133 |
) |
(120 |
) |
(58 |
) |
(21 |
) |
|
Preferred share dividends paid |
(37 |
) |
(51 |
) |
(8 |
) |
(13 |
) |
|
Cash received for off-coal compensation |
50 |
|
50 |
|
- |
|
- |
|
|
Remove tax equity interests’ respective shares of adjusted funds
from operations |
(7 |
) |
(7 |
) |
2 |
|
- |
|
|
Adjusted funds from operations from joint ventures |
36 |
|
15 |
|
20 |
|
3 |
|
|
Other non-recurring items5 |
31 |
|
- |
|
31 |
|
- |
|
|
Line Loss Rule Proceeding 6 |
- |
|
(13 |
) |
- |
|
- |
|
|
Adjusted funds from operations |
848 |
|
605 |
|
140 |
|
149 |
|
|
Weighted average number of common shares outstanding
(millions) |
116.5 |
|
112.1 |
|
116.9 |
|
116.0 |
|
|
Adjusted funds from operations per share ($) |
7.28 |
|
5.40 |
|
1.20 |
|
1.28 |
|
- Included in other cash items on the consolidated statements of
cash flows to reconcile net income to net cash flows from operating
activities.
- Excludes unrealized changes on interest rate derivative
contracts, amortization, accretion charges and non-cash implicit
interest on tax equity investment structures.
- For the year and three months ended December 31, 2022, excludes
current income tax recovery related to the Genesee 3 and Keephills
3 swap transaction of $21 million as these amounts are considered
investing activities. For the year and three months ended December
31, 2021, excludes current income tax expense of $16 million and $2
million, respectively, related to the Genesee 3 and Keephills 3
swap transaction as these amounts are considered investing
activities.
- Includes sustaining capital expenditures net of partner
contributions of $5 million and $1 million for the year and three
months ended December 31, 2022, respectively, compared with $10
million and $2 million for the year and three months ended December
31, 2021, respectively.
- Other non-recurring items include a write-down of $18 to
reflect lower net realizable value of inventory related to the
end-of-life of our Genesee’s coal operations and a provision of $13
million (US $10 million) for the termination fees related to the
existing PPAs of the Bear Branch Solar, Hornet Solar and Hunter’s
Cove Solar projects
- Consistent with our definition of AFFO described above
pertaining to the LLR Proceeding, AFFO for the year and three
months ended December 31, 2021, is impacted only by our net
obligations related to the 2006-2009 and 2010-2013 invoice
tranches.
Normalized earnings attributable to common shareholders
and normalized earnings per share
The Company uses normalized earnings attributable to common
shareholders and normalized earnings per share to measure
performance by period on a comparable basis. Normalized earnings
attributable to common shareholders and normalized earnings per
share are based on net income (loss) attributable to shareholders
of the Company according to GAAP and adjusted for items that are
not reflective of performance in the period such as unrealized fair
value changes, impairment charges, unusual tax adjustments, gains
and losses on disposal of assets or unusual contracts, and foreign
exchange gain or loss on the revaluation of U.S. dollar denominated
debt. The adjustments, shown net of tax, consist of unrealized fair
value changes on financial instruments that are not necessarily
indicative of future actual realized gains or losses, non-recurring
gains or losses, or gains or losses reflecting corporate structure
decisions.
|
(unaudited, $ millions except per share amounts and number of
common shares) |
|
Year ended December 31 |
Three months ended |
|
|
2022 |
|
2021 |
|
Dec 2022 |
|
Sep 2022 |
|
Jun 2022 |
|
Mar 2022 |
|
Dec 2021 |
|
Sep 2021 |
|
Jun 2021 |
|
Mar 2021 |
|
|
Basic earnings (loss) per share ($) |
0.85 |
|
0.39 |
|
(0.91 |
) |
0.21 |
|
0.59 |
|
0.96 |
|
(0.67 |
) |
0.23 |
|
0.05 |
|
0.83 |
|
|
Net income (loss) attributable to shareholders of the
Company per Consolidated Statements of Income |
138 |
|
98 |
|
(98 |
) |
34 |
|
80 |
|
122 |
|
(65 |
) |
40 |
|
20 |
|
103 |
|
|
Preferred share dividends including Part VI.1 tax |
(39 |
) |
(54 |
) |
(8 |
) |
(10 |
) |
(11 |
) |
(10 |
) |
(13 |
) |
(13 |
) |
(14 |
) |
(14 |
) |
|
Earnings (loss) attributable to common shareholders |
99 |
|
44 |
|
(106 |
) |
24 |
|
69 |
|
112 |
|
(78 |
) |
27 |
|
6 |
|
89 |
|
|
Unrealized changes in fair value of derivatives 1 |
310 |
|
146 |
|
188 |
|
110 |
|
14 |
|
(2 |
) |
83 |
|
48 |
|
25 |
|
(10 |
) |
|
Genesee 2 forced outage |
- |
|
(17 |
) |
- |
|
- |
|
- |
|
- |
|
(5 |
) |
(12 |
) |
- |
|
- |
|
|
Provision for contingency |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(6 |
) |
6 |
|
- |
|
|
Impairment losses (reversal) |
- |
|
45 |
|
- |
|
- |
|
- |
|
- |
|
41 |
|
6 |
|
(2 |
) |
- |
|
|
Reduction in applicable jurisdictional tax rates |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
10 |
|
- |
|
- |
|
(10 |
) |
|
Provision for Line Loss Rule Proceeding |
- |
|
(1 |
) |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(1 |
) |
|
Others |
15 |
|
4 |
|
- |
|
12 |
|
5 |
|
(2 |
) |
4 |
|
- |
|
- |
|
- |
|
|
Normalized earnings attributable to common
shareholders |
424 |
|
221 |
|
82 |
|
146 |
|
88 |
|
108 |
|
55 |
|
63 |
|
35 |
|
68 |
|
|
Weighted average number of common shares outstanding
(millions) |
116.5 |
|
112.1 |
|
116.9 |
|
116.7 |
|
116.4 |
|
116.2 |
|
116.0 |
|
115.5 |
|
109.7 |
|
106.8 |
|
|
Normalized earnings per share ($) |
3.64 |
|
1.97 |
|
0.70 |
|
1.25 |
|
0.76 |
|
0.93 |
|
0.47 |
|
0.55 |
|
0.32 |
|
0.64 |
|
- Includes impacts of the derivatives held within our joint
ventures and recorded within income (loss) from joint ventures on
our consolidated statements of income.
Forward-looking Information
Forward-looking information or statements included in this press
release are provided to inform the Company’s shareholders and
potential investors about management’s assessment of Capital
Power’s future plans and operations. This information may not be
appropriate for other purposes. The forward-looking information in
this press release is generally identified by words such as will,
anticipate, believe, plan, intend, target, and expect or similar
words that suggest future outcomes.
Material forward-looking information in this press release
includes disclosures regarding (i) reduction in carbon emissions
from Genesee 1 and 2 following the repowering project, (ii)
efficiency of the Genesee 1 and 2 natural gas units in Canada and
their baseload position in the Alberta power market following
repowering, (iii) status of and updates to the Company’s 2023 AFFO
and adjusted EBITDA guidance, (iv) budgeted 2023 depreciation, and
(v) the timing of the investment decision for the Company’s
potential CCS project.
These statements are based on certain assumptions and analyses
made by the Company considering its experience and perception of
historical trends, current conditions, expected future developments
and other factors it believes are appropriate including its review
of purchased businesses and assets. The material factors and
assumptions used to develop these forward-looking statements relate
to: (i) electricity, other energy and carbon prices, (ii)
performance, (iii) business prospects (including potential
re-contracting of facilities) and opportunities including expected
growth and capital projects, (iv) status of and impact of policy,
legislation and regulations and (v) effective tax rates.
Whether actual results, performance or achievements will conform
to the Company’s expectations and predictions is subject to a
number of known and unknown risks and uncertainties which could
cause actual results and experience to differ materially from the
Company’s expectations. Such material risks and uncertainties are:
(i) changes in electricity, natural gas and carbon prices in
markets in which the Company operates and the use of derivatives,
(ii) regulatory and political environments including changes to
environmental, climate, financial reporting, market structure and
tax legislation, (iii) generation facility availability, wind
capacity factor and performance including maintenance expenditures,
(iv) ability to fund current and future capital and working capital
needs, (v) acquisitions and developments including timing and costs
of regulatory approvals and construction, (vi) changes in the
availability of fuel, (vii) ability to realize the anticipated
benefits of acquisitions, (viii) limitations inherent in the
Company’s review of acquired assets, (ix) changes in general
economic and competitive conditions and (x) changes in the
performance and cost of technologies and the development of new
technologies, new energy efficient products, services and programs.
See Risks and Risk Management in the Company’s Integrated Annual
Report for the year ended December 31, 2022, prepared as of
February 28, 2023, for further discussion of these and other
risks.
Readers are cautioned not to place undue reliance on any such
forward-looking statements, which speak only as of the specified
approval date. The Company does not undertake or accept any
obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements to reflect any change
in the Company’s expectations or any change in events, conditions
or circumstances on which any such statement is based, except as
required by law.
Territorial Acknowledgement
In the spirit of reconciliation, Capital Power respectfully
acknowledges that we operate within the ancestral homelands,
traditional and treaty territories of the Indigenous Peoples of
Turtle Island, or North America.
Capital Power’s head office is located within the traditional
and contemporary home of many Indigenous Peoples of the Treaty 6
region and Métis Nation of Alberta Region 4. We acknowledge the
diverse Indigenous communities that are located in these areas and
whose presence continues to enrich the community.
About Capital Power
Capital Power (TSX: CPX) is a growth-oriented North American
wholesale power producer with a strategic focus on sustainable
energy headquartered in Edmonton, Alberta. We build, own, and
operate high-quality, utility-scale generation facilities that
include renewables and thermal. We have also made significant
investments in carbon capture and utilization to reduce carbon
impacts. Capital Power owns approximately 7,500 MW of power
generation capacity at 29 facilities across North America. Projects
in advanced development include approximately 151 MW of owned
renewable generation capacity in Alberta and 512 MW of incremental
natural gas combined cycle capacity, from the repowering of Genesee
1 and 2 in Alberta.
For more information, please
contact:
Media Relations:Katherine Perron(780)
392-5335kperron@capitalpower.com |
Investor Relations:Randy Mah(780) 392-5305 or
(866) 896-4636 (toll-free)investor@capitalpower.com |
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