Algonquin Power & Utilities 2021 Revenue Rises 36%

Algonquin Power & Utilities (TSE: AQN) (NYSE: AQN) reported double-digit revenue and adjusted earnings growth for the year ended December 31, 2021.

The Canadian-based renewable energy and regulated utility conglomerate owns assets in North America.

Revenue & Earnings

Revenue the full year came in at $2,285.5 million, an increase of 36% from revenues of $1,677 million reported in 2020.

The company reported net earnings attributable to shareholders of $264.9 million ($0.41 per share) in FY 2021, down 66% from a profit of $782.5 million ($1.38 per share) a year ago. Adjusted EBITDA increased 24%, from $869.5 million to $1,076.9 million.

On an adjusted basis, Algonquin earned $449.6 million ($0.71 per share) for the year compared with an adjusted profit of $365.8 million ($0.64 per share) in the prior year.

The company expects that its adjusted net earnings per share will be in the range of $0.72 to $0.77 for fiscal 2022.

CEO Commentary

Algonquin president and CEO Arun Banskota said, “We are pleased that the Company has successfully delivered on many of its strategic priorities in 2021, including the continued execution of several exciting new renewable projects and a further advancement of sustainability initiatives. Despite weaker weather conditions, we are pleased to report solid fourth quarter operating results from the Company’s diversified and resilient business model. Looking forward, we remain confident that the Company’s $12.4 billion capital expenditure plan from 2022 through 2026 will continue to drive long term shareholder value.”

Wall Street’s Take

Following the results, BMO Capital analyst Benjamin Pham kept a Buy rating on AQN and C$16.50 price target. This implies 10% downside potential.

Overall, AQN scores a Moderate Buy consensus rating among analysts based on four Buys, two Holds, and one Sell. The average Algonquin Power & Utilities price target of C$20.45 implies 11% upside potential to current levels.

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