AltaGas Reports 31 Percent Increase in Earnings Per Share and
Record Cash Flow for 2013
CALGARY, ALBERTA--(Marketwired - Feb 27, 2014) -
Fourth Quarter and 2013 Highlights
- 31 percent increase in normalized earnings per share in 2013,
compared to 2012;
- A record $508.9 million in normalized EBITDA in 2013, a 51
percent increase compared to 2012;
- Normalized earnings per share increased by 11 percent and
normalized EBITDA increased by 18 percent in fourth quarter 2013,
compared to fourth quarter 2012;
- A record $402.7 million, a 43 percent increase, in normalized
funds from operations in 2013; $117.1 million in fourth quarter
2013;
- Increased dividend by 6.25 percent; payout ratio of 43 percent
of normalized funds from operations;
- The 195 MW Forrest Kerr hydro project is in commissioning and
on track to be in service in mid-2014; 16 MW Volcano hydro project
advanced to 2014 - two years ahead of schedule; and
- Strategic relationships in place to execute on LPG and LNG
export initiatives.
AltaGas Ltd. (AltaGas)
(TSX:ALA)(TSX:ALA.PR.A)(TSX:ALA.PR.U)(TSX:ALA.PR.E) today reported
significant earnings and cash flow growth for 2013. Normalized net
income increased to $175.8 million ($1.51 per share), compared to
$109.5 million ($1.15 per share) in 2012. Net income applicable to
common shares was $181.5 million ($1.56 per share) for 2013,
compared to $101.8 million ($1.07 per share) in 2012.
Normalized EBITDA for 2013 increased 51 percent to $508.9
million, compared to $336.9 million for 2012. Normalized funds from
operations was $402.7 million ($3.47 per share) for 2013, compared
to $281.0 million ($2.96 per share) in 2012.
"AltaGas achieved outstanding results in 2013, delivering growth
of over 30 percent in earnings per share and 17 percent in FFO per
share. On the growth front, we successfully positioned ourselves
for energy exports with the expansion of our gas business and we
established a significant footprint in the US power market," said
David Cornhill, Chairman and CEO of AltaGas. "We also achieved
EBITDA of over half a billion for the first time - a great
achievement in the company's twenty-year history. 2014 will be
another exciting year for AltaGas as we commission our Forrest Kerr
and Volcano projects. These projects are marquee projects that will
bring another step change to our already strong portfolio of energy
infrastructure assets."
The increase in earnings and cash flow were the result of the
strength of AltaGas' operations and the positive growth across all
business segments in the year. Full year results from SEMCO,
Gordondale and Harmattan Co-stream as well as the expansion of
Blair Creek and other smaller assets contributed significant
incremental earnings in 2013 compared to 2012. In 2013, AltaGas
continued to execute its strategy of adding clean energy to its
portfolio and moving its energy export initiatives forward. The
acquisition of Blythe and the 25 percent interest in Petrogas
Energy Corp. (Petrogas) also contributed to the strong growth in
earnings and cash flow. AltaGas also benefited from higher realized
power prices in Alberta, colder weather in Michigan, Alberta and
Nova Scotia and lower income taxes. Earnings in the year were
partially offset by lower realized frac prices, higher general and
administrative costs, and higher interest expense as a result of
AltaGas' growth.
Fourth quarter normalized net income was $59.9 million ($0.49
per share), compared to $46.6 million ($0.44 per share) in fourth
quarter 2012. Net income applicable to common shares was $53.2
million ($0.44 per share) in fourth quarter 2013, compared to $26.7
million ($0.25 per share) for same period 2012.
Normalized EBITDA was $153.3 million in fourth quarter 2013,
compared to $129.4 million in fourth quarter 2012. Normalized funds
from operations was $117.1 million ($0.96 per share) in fourth
quarter 2013, compared to $112.0 million ($1.07 per share) in
fourth quarter 2012. The lower normalized funds from operations on
a per share basis was due to the timing of cash distributions from
equity-owned investments.
The solid earnings delivered in fourth quarter 2013 were due to
the contributions from Blythe and a 25 percent interest in Petrogas
which were acquired in 2013, higher volumes of natural gas
processed, stronger earnings from NGL sales, higher production at
Bear Mountain, higher volumes delivered and higher rate base at the
utilities, and lower taxes. Earnings in the quarter were negatively
impacted by weaker power prices in Alberta, higher interest expense
and higher general and administrative costs compared to the same
quarter last year.
Project Updates
Northwest Run-of-river Projects
AltaGas continues to make solid progress on its three Northwest
run-of-river hydro projects. The 195 MW Forrest Kerr project is
mechanically complete and commissioning is ongoing. The nine
turbine generator units have been assembled, aligned and grouted
into position. Based on progress made over the past six months,
AltaGas expects the Northwest Transmission Line to be available in
time to enable Forrest Kerr to be in service by mid-2014.
At the 16 MW Volcano Creek project, intake construction, weir
installation, powerhouse building, turbine foundations, and
powerhouse crane installation have been completed. The penstock
excavation is also complete with the penstock installation to
commence in the spring of 2014. The project is expected to be in
service in late 2014.
At the 66 MW McLymont Creek project, construction of the
7-kilometre intake access road is complete. Excavation of the
McLymont power portal has been completed and approximately 50
percent of the 2,800 metre power tunnel has been excavated.
Excavation of the powerhouse foundation is complete and
installation of the powerhouse foundation has commenced. The
project is expected to be in service in mid-2015.
Energy Exports
AltaGas has significantly advanced its liquefied petroleum gas
(LPG) export project. On October 1, 2013 AltaGas closed the
acquisition of a 25 percent interest in Petrogas, a privately held
leading North American integrated midstream company. Petrogas
provides key infrastructure as well as supply logistics and
marketing expertise required to pursue LPG exports.
On October 24, 2013, AltaGas announced it will increase its
effective ownership of Petrogas to one-third and will transfer its
current 25 percent ownership to AltaGas Idemitsu Joint Venture
Limited Partnership (AIJVLP). AIJVLP will acquire an additional 41
2/3 percent interest in Petrogas. As a result of the transaction,
Petrogas will be effectively owned one third by each of AltaGas,
Idemitsu Kosan Co., Ltd., and Petrogas' current majority
shareholder. The acquisition is expected to be accretive to
AltaGas' earnings per share by approximately $0.10 in 2015. All
regulatory approvals have been obtained and the transaction is
expected to close on March 1, 2014.
AIJVLP is also preparing preliminary engineering designs for the
construction of the refrigeration facilities and is in negotiations
for potential site locations. The proposed LPG export business is
subject to consultations with First Nations, and the completion of
the feasibility study, permitting, regulatory approvals and
facility construction. Based on progress to date, AltaGas expects
LPG exports to begin as early as 2016.
AltaGas continues to advance its liquefied natural gas export
(LNG) initiative. On October 29, 2013 Triton LNG Limited
Partnership (Triton LNG), a subsidiary of AIJVLP, filed an
application with the National Energy Board for approval to export
up to 2.3 million tonnes of LNG per year. The application is an
important step required in the project's progress. Triton LNG is
also preparing preliminary engineering designs for the construction
of the liquefaction facilities and is pursuing potential site
locations. The proposed LNG business is subject to consultations
with First Nations, and the completion of the feasibility study,
permitting, regulatory approvals and facility construction.
Monthly Common Share Dividend and Quarterly Preferred Share
Dividend
- The Board of Directors approved the March 2014 dividend of
$0.1275 per common share. The dividend will be paid on April 15,
2014, to common shareholders of record on March 25, 2014. The
ex-dividend date is March 21, 2014. This dividend is an eligible
dividend for Canadian income tax purposes;
- The Board of Directors approved a dividend of $0.3125 per share
for the period commencing January 1, 2014 and ending March 31,
2014, on AltaGas' outstanding Series A Preferred Shares. The
dividend will be paid on March 31, 2014 to shareholders of record
on March 18, 2014. The ex-dividend date is March 14, 2014;
- The Board of Directors approved a dividend of US$0.275 per
share for the period commencing January 1, 2014 and ending March
31, 2014, on AltaGas' outstanding Series C Preferred Shares. The
dividend will be paid on March 31, 2014 to shareholders of record
on March 18, 2014. The ex-dividend date is March 14, 2014; and
- The Board of Directors also approved a dividend of $0.3699 per
share for the period commencing December 13, 2013, and ending March
31, 2014, on AltaGas' outstanding Series E Preferred Shares. The
dividend will be paid on March 31, 2014 to shareholders of record
on March 18, 2014. The ex-dividend date is March 14, 2014.
CONSOLIDATED FINANCIAL REVIEW
(unaudited) |
Three months ended December 31 |
Year ended December 31 |
($ millions) |
2013 |
2012 |
2013 |
2012 |
Revenue |
581.2 |
525.8 |
2,042.9 |
1,449.7 |
Net revenue(1) |
264.6 |
207.6 |
960.2 |
664.4 |
Normalized operating income(1) |
111.9 |
96.4 |
352.7 |
234.6 |
Normalized EBITDA(1) |
153.3 |
129.4 |
508.9 |
336.9 |
Net income applicable to common shares |
53.2 |
26.7 |
181.5 |
101.8 |
Normalized net income(1) |
59.9 |
46.6 |
175.8 |
109.5 |
Total assets |
7,281.3 |
5,932.4 |
7,281.3 |
5,932.4 |
Total long-term liabilities |
3,727.4 |
3,357.4 |
3,727.4 |
3,357.4 |
Net additions to property, plant and equipment |
223.4 |
166.5 |
1,144.6 |
1,532.1 |
Dividends declared(2) |
46.7 |
37.4 |
173.6 |
132.8 |
Cash flows |
|
|
|
|
|
Normalized funds from operations(1) |
117.1 |
112.0 |
402.7 |
281.0 |
|
Three months ended December 31 |
Year ended December 31 |
($ per share, except shares outstanding) |
2013 |
2012 |
2013 |
2012 |
Normalized EBITDA(1) |
1.26 |
1.23 |
4.38 |
3.55 |
Net income - basic |
0.44 |
0.25 |
1.56 |
1.07 |
Net income - diluted |
0.43 |
0.25 |
1.52 |
1.06 |
Normalized net income(1) |
0.49 |
0.44 |
1.51 |
1.15 |
Dividends declared(2) |
0.38 |
0.36 |
1.50 |
1.40 |
Cash flows |
|
|
|
|
|
Normalized funds from operations(1) |
0.96 |
1.07 |
3.47 |
2.96 |
Shares outstanding - basic (millions) |
|
|
|
|
|
During the period(3) |
122.0 |
105.0 |
116.1 |
95.0 |
|
End of period |
122.3 |
105.3 |
122.3 |
105.3 |
(1) Non-GAAP financial measure; see discussion in Non-GAAP
Financial Measures section of the 2013 annual MD&A. |
(2) Dividends declared per common share per month of $0.115
beginning October 27, 2011, $0.12 beginning September 10, 2012,
$0.125 beginning April 24, 2013 and $0.1275 beginning July 31,
2013. |
(3) Weighted average. |
CONFERENCE CALL AND WEBCAST DETAILS:
AltaGas will hold a conference call today at 9:00 a.m. MT (11:00
a.m. ET) to discuss fourth quarter and 2013 financial results,
progress on construction projects and other corporate
developments.
Members of the media, investment communities and other
interested parties may dial (416) 340-2219 or call toll free at
1-866-226-1798. There is no passcode. Please note that the
conference call will also be webcast. To listen, please go to
http://www.altagas.ca/investors/presentations_and_events. The
webcast will be archived for one year.
Shortly after the conclusion of the call, a replay will be
available by dialing (905) 694-9451 or 1-800-408-3053. The passcode
is 5334017. The replay expires at midnight (Eastern) on March 6,
2014.
AltaGas is an energy infrastructure business with a focus on
natural gas, power and regulated utilities. AltaGas creates value
by acquiring, growing and optimizing its energy infrastructure,
including a focus on clean energy sources. For more information
visit: www.altagas.ca.
This news release contains forward-looking statements. When
used in this news release, the words "may", "would", "could",
"will", "intend", "plan", "anticipate", "believe", "seek",
"propose", "estimate", "expect", and similar expressions, as they
relate to AltaGas or an affiliate of AltaGas, are intended to
identify forward-looking statements. In particular, this news
release contains forward-looking statements with respect to, among
other things, business objectives, expected growth, results of
operations, performance, business projects and opportunities and
financial results. These statements involve known and unknown
risks, uncertainties and other factors that may cause actual
results or events to differ materially from those anticipated in
such forward-looking statements. Such statements reflect AltaGas'
current views with respect to future events based on certain
material factors and assumptions and are subject to certain risks
and uncertainties, including without limitation, changes in market,
competition, governmental or regulatory developments, general
economic conditions and other factors set out in AltaGas' public
disclosure documents. Many factors could cause AltaGas' actual
results, performance or achievements to vary from those described
in this news release, including without limitation those listed
above. These factors should not be construed as exhaustive. Should
one or more of these risks or uncertainties materialize, or should
assumptions underlying forward-looking statements prove incorrect,
actual results may vary materially from those described in this
news release as intended, planned, anticipated, believed, sought,
proposed, estimated or expected, and such forward-looking
statements included in, or incorporated by reference in this news
release, should not be unduly relied upon. Such statements speak
only as of the date of this news release. AltaGas does not intend,
and does not assume any obligation, to update these forward-looking
statements. The forward-looking statements contained in this news
release are expressly qualified by this cautionary
statement.
AltaGas Ltd.Investment
Community1-877-691-7199investor.relations@altagas.caAltaGas
Ltd.Media(403) 269-5701media.relations@altagas.cawww.altagas.ca
AltaGas (TSX:ALA.PR.U)
Historical Stock Chart
From Jul 2024 to Aug 2024
AltaGas (TSX:ALA.PR.U)
Historical Stock Chart
From Aug 2023 to Aug 2024