The following is a summary of the ATCO Ltd. (ACLLF) Q3 2024 Earnings Call Transcript:
Financial Performance:
ATCO Ltd reported an adjusted earnings of $91 million in Q3 2024, up 12% from the previous year.
Growth in earnings primarily driven by Canadian Utilities' performance, influenced by an increased allowable ROE and rate-based growth.
Non-regulated assets also contributed to this growth, particularly from increased demand and strong seasonal spreads in natural gas storage.
Business Progress:
Major projects and an expansion in base business, particularly in the U.S., Canada, and Australia, bolstered the Structures segment.
Acquisition of NRB Modular Solutions to expand manufacturing capabilities and fleet offerings across Canada.
Focus on investing in essential services spaces like energy, logistics, transportation, shelter, and real estate to ensure sustainable growth.
Opportunities:
Continued strong fundamentals in core Alberta markets provide opportunities for higher rate base growth.
Expansion of global space rental activity and the integration of NRB Modular Solutions contribute to long-term growth in Structures.
Risks:
Expected moderation in earnings growth for utilities in 2025 due to a reset in allowable ROE and non-carryover of the efficiency carryover mechanism.
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