Capital Power Corporation - The Whitla Wind Facility
The Whitla Wind Facility
Source: Capital Power
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  • Generated net cash flows from operating activities of C$108 million and adjusted funds from operations (AFFO) of C$180 million
  • Generated net income of C$77 million and adjusted EBITDA of C$319 million
  • Increased 2022 annual financial guidance for adjusted EBITDA to C$1,240 million to C$1,280 million (original guidance of C$1,110 million to $1,160 million)
  • Increased Adjusted Funds From Operations (AFFO) to C$700 million to C$740 million (original guidance of $580 million to $630 million)
  • Increased the annual common share dividend by six per cent to C$2.32 per year representing the ninth consecutive annual increase, including annual dividend growth guidance to six per cent through to 2025 from the previous five per cent
  • Capital Power Corporation (CPX) is down 0.45 per cent to C$49.12 per share at 11:30 a.m. EDT

Capital Power Corporation (CPX) has released financial results for the quarter ended June 30, 2022.

Brian Vaasjo, President and CEO of Capital Power, commented,

Photo courtesy www.capitalpower.com

“Second quarter financial results continue to exceed management’s expectations. Higher generation and strong Alberta power prices averaging $106 per megawatt hour along with outstanding performance across the fleet led to exceptional performance in the first half of the year. Based on this performance and the positive outlook for the remainder of the year, we have increased our 2022 financial guidance with revised guidance ranges significantly exceeding the top end of our original targets.”

Financial highlights:

  • Generated net cash flows from operating activities of C$108 million and adjusted funds from operations (AFFO) of C$180 million
  • Generated net income of C$77 million and adjusted EBITDA of C$319 million
  • Increased 2022 annual financial guidance for adjusted EBITDA to C$1,240 million to C$1,280 million (original guidance of C$1,110 million to C$1,160 million) and AFFO to C$700 million to C$740 million (original guidance of C$580 million to $630 million)
  • Increased the annual common share dividend by six per cent to C$2.32 per year representing the ninth consecutive annual increase

Strategic highlights:

  • Announced the acquisition of the Midland Cogeneration Venture (Midland Cogen) facility, the largest gas-fired cogeneration facility in North America, where Capital Power and Manulife Investment Management will each own a 50 per cent interest for a total purchase price of C$1,163 million (US$894 million)
  • Increased annual dividend growth guidance to six per cent through to 2025 from the previous five per cent
  • Partnered with Mitsubishi Heavy Industries Group and Kiewit Energy Group on a front-end engineering and design (FEED) study for the Genesee carbon capture and sequestration (CCS) Project advancing the commercial application of CCS technology at its Genesee Generating Station in Alberta
  • Executed a 4.5-year contract renewal for the Island Generation facility in British Columbia

The Board of Directors for Capital Power Corporation has also declared a dividend of $0.58 per share on the outstanding common shares for the quarter ending September 30, 2022.

The dividend is payable on October 31, 2022, to shareholders of record at the close of business on September 30, 2022.

The quarterly dividend of $0.58 per common share compared to the previous $0.5475 dividend represents a six per cent increase and an annualized dividend of $2.32 per common share.

The dividends for the common shares and preference shares are 100 per cent eligible dividends as defined by the Income Tax Act.

Under this legislation, individuals resident in Canada may be entitled to enhanced dividend tax credits that reduce the income tax otherwise payable on these dividends.

Capital Power Corporation (CPX) is down 0.45 per cent to C$49.12 per share at 11:30 a.m. EDT.


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