Algonquin Q2 Adjusted Profit Almost Doubles

Algonquin Power & Utilities Corp. (AQN) reported strong year-over-year earnings and revenue growth in its second quarter of 2021. Algonquin is a diversified Canadian electricity generation, transmission, and distribution company.

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Revenue for Q2 2021 came in at $527.5 million, an increase of 54% from a revenue of $343.6 million reported in Q2 2020.

Meanwhile, the company reported a profit of $103.2 million ($0.16 per share) in the quarter ended June 30, compared to a profit of $286.2 million ($0.54 per share) a year ago. Adjusted EBITDA increased 39%, from $176.3 million to $244.9 million. (See Algonquin Power & Utilities stock charts on TipRanks)

On an adjusted basis, Algonquin earned $91.7 million ($0.15 per share) for its most recent quarter compared with an adjusted profit of $47.4 million ($0.09 per share) in the prior-year period.

AQN president and CEO Arun Banskota said, “We are pleased to report strong year-over-year earnings growth in the second quarter, supported in part by the approximately 1,400 MW of renewable energy projects placed in service since August 2020 and contributions from our recent acquisitions.

“In the quarter, we successfully completed our Midwest ‘greening the fleet’ initiative, which is expected to provide clean and cost effective energy solutions to our customers, aligning with our commitment to advancing a sustainable energy and water future.”

For the six-month period ended June 30, 2021, capital expenditures totaled $3.14 billion. The company’s five-year investment plan of $9.4 billion from 2021 to 2025 remains on track.

On June 27, RBC Capital analyst Nelson Ng reiterated a Buy rating on AQN, with an $18.00 (C$22.55) price target. This implies 15% upside potential.

Overall, AQN scores a Hold consensus rating among analysts based on one Buy and four Holds. The average Algonquin Power & Utilities price target of C$19.22 implies 2% downside potential to current levels.