- Electric and gas utility company Fortis (FTS) its looking to achieve its dividend growth targets with a new five-year C$19.6 billion capital plan
- The plan represents an $800 million increase compared to the previous one and will be funded primarily with cash from operations
- Fortis also reported a $14 million increase in earnings for the third quarter of 2020, from $278 million in the same period last year to $292 million
- This reflects higher sales at UNS Energy and higher hydroelectric production and equity income in Belize
- Fortis (FTS) is currently down 2.15 per cent to $52.80 per share
Electric and gas utility company Fortis (FTS) its looking to achieve its dividend growth targets with a new five-year C$19.6 billion capital plan.
The spending, which will be carried out from 2021 to 2025, represents an $800 million increase compared to the prior plan. The spending bump is largely down to two new major capital projects at FortisBC Energy, additional investments in IT systems and storm hardening at Central Hudson, and additional capacity at ITC.
Fortis said it expects to fund the capital plan using a combination of cash from operations, debt issued at regulated utilities and dividend reinvestments.
Barry Perry, President and CEO of Fortis, said he is excited by the new opportunities ahead for the company.
“With our new five-year capital plan and substantially all of our assets focused on the transmission and distribution of energy, Fortis is in a strong position to continue to grow and deliver on a cleaner energy future,” he added.
Fortis also released its financial results for the third quarter of 2020 today, which outline a $14 million increase in earnings. For the three months ending September 30, the company’s net income totalled $292 million compared to last year’s same-period amount of $278 million.
This reflects rate base growth at the regulated utilities, higher sales at UNS Energy – driven largely by weather – and higher hydroelectric production and equity income in Belize.
Notably, with the exception of a delay in Tucson Electric Power’s general rate application, Fortis said its earnings for the third quarter were not materially impacted by the COVID-19 pandemic.
“The Fortis business model, with its use of local teams and focus on local decision making, has never been more valuable,” Barry continued.
Fortis (FTS) is currently down 2.15 per cent to $52.80 per share at 12:16pm EDT.