EPCOR Announces 2023 Financial Results

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edmonton, alabama, February 15, 2024 /CNW/ – EPCOR Utilities Inc. (EPCOR) today filed its 2023 annual and fourth quarter financial results.

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“Throughout 2023, EPCOR employees provided reliable public service to customers across our North American footprint while maintaining an outstanding safety record and strong operational performance,” he said. John Elford, EPCOR President and CEO. “Financial performance exceeded expectations for the utility as a whole. Canada And in the United States, regulated utilities are steadily growing and commercial development projects are performing well. ”

“Our capital investment is approximately 1 dollar The billion figure demonstrates our commitment to improving reliability and meeting the growing demand for services on both sides of the border. This includes construction of a new electrical substation in Genesee. alberta and west side sewage treatment plant expansion. phoenix, catering to new industrial and commercial customers. Additionally, we have invested to support the relocation of public facilities. city of edmonton We continued to move forward with construction projects and flood mitigation projects to protect water treatment facilities from the effects of climate change. ”

“EPCOR’s commitment to a sustainable future for our communities is reflected in our financial plans. $750 million Syndicate Bank’s credit facilities have been revised to link our financing costs to achieving our goals of reducing greenhouse gas emissions, improving gender diversity in the workplace, and providing affordable services to our customers. Ta. ”

“Given this year’s strong performance and strong prospects for continued growth, as previously announced, EPCOR plans to increase dividends to shareholders as follows.” $193 By 2024, there will be 1 million people. $8 This is an increase of $1 million compared to 2023, marking the third consecutive year of increased dividends. ”

Highlights of EPCOR’s financial performance include:

Net profit is $95 million and $361 $1 million for 3 months and ending year December 31, 2023compared to net profit. $93 With a million $379 $1 million each for the 2022 comparative period.increase of 2 dollars 1 million completed in 3 months December 31, 2023 This was primarily due to an increase in adjusted EBITDA¹ and net collections of transmission system access service charges, partially offset by fair value adjustments related to financial power purchase agreements.decrease in $18 million Towards the end of the year December 31, 2023 This was primarily due to fair value adjustments related to the 2023 Financial Power Purchase Agreement and higher depreciation and finance costs, partially offset by higher Adjusted EBITDA.¹.
Adjusted EBITDA¹ was $256 million and $1,061 $1 million for 3 months and ending year December 31, 2023compared to $223 With a million $930 $1 million each for the 2022 comparative period.increase of $33 With a million $131 $1 million for 3 months and ending year December 31, 2023Each was primarily due to increased construction activity, higher rates and customer growth, partially offset by higher operating costs.
Investments in capital projects are $988 million for the year ended December 31, 2023compared to $920 million Electricity prices in the corresponding year of 2022 increased mainly due to increased capital expenditures for the construction of new substations to facilitate the interconnection of two domestic power generation units. alberta and construction of new wastewater treatment facilities. arizona.

1.	Adjusted EBITDA is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section in Appendix 1 of this media release.

Management’s discussion and analysis and the audited consolidated financial statements are available on EPCOR’s website at www.epcor.com and on SEDAR+ at www.sedarplus.ca.

EPCOR, through its wholly-owned subsidiaries, builds, owns, and operates electric, natural gas, and water transmission and distribution networks, water treatment facilities, and sanitary and stormwater systems. Canada and US. EPCOR also provides electricity, natural gas, and water products and services to residential and commercial customers. EPCOR, Headquarters edmontonis committed to conducting its business and operations safely and responsibly. Environmental stewardship, public health, and community well-being are central to EPCOR’s mission to provide clean water and safe, reliable energy. EPCOR is one of them of alberta The top 80 employers are ranked in Corporate Knights’ 2023 Best 50 Corporate Citizens. Canadadesignated a Today’s Future Public Facility by the Water Environment Federation.

Appendix 1 Non-GAAP Financial Measures

EPCOR is responsible for financing costs, income tax collections (expenses), depreciation and amortization, changes in the fair value of derivative financial instruments, net collections of transmission system access service charges and other special items (collectively, “ Adjusted EBITDA) is used to discuss EPCOR’s results of operations. EPCOR’s business areas. Adjusted EBITDA is a non-GAAP financial measure and is not a standardized financial measure under IFRS accounting standards and may not be comparable to similar financial measures disclosed by other issuers.

The reconciliation of Adjusted EBITDA and net income reported under IFRS accounting standards is as follows:


(unaudited, millions of dollars)	3 months are over December 31		year ended December 31
	2023	2022 (Reposted)¹	2023	2022 (Reposted)¹
Adjusted EBITDA by segment
Water business segment	$104	$92	$436	$393
Power distribution/transmission business	59	59	253	248
Energy service business	7	19	54	61
North American Commercial Services Division	20	6	105	40
US regulated water segment	53	40	180	157
other	13	7	33	31
Adjusted EBITDA	256	223	1,061	930
Other income/income	–	2	–	2
financial costs	(50)	(46)	(190)	(160)
income tax expense	(12)	(14)	(20)	(37)
Depreciation and amortization	(112)	(116)	(429)	(409)
Changes in fair value of financial power purchases contract²	2	46	(83)	64
Transmission system access service fee net amount collection³	11	(2)	twenty two	(11)
Net income	$95	$93	$361	$379

1.	During the fourth quarter of 2023, we reorganized our operating segments to reflect the results of our internal restructuring. As a result of this reorganization, a new operating segment, North American Commercial Services, was formed and certain previously existing businesses were consolidated into the new reportable segment. The 2022 segment comparative results have been restated to conform to the 2023 reportable segment presentation.
2.	The change in fair value of a derivative financial instrument represents the change in the fair value of a financial power purchase contract between the power market futures price for the contracted power amount and the contract price at the end of the reporting period.
3.	The net transmission system access service fee collection is the difference between the transmission system access service fee paid to the state’s grid operator and the transmission system access service fee collected from retail electric utilities. Net collection of transmission system access service charges is the timing difference between the transmission system access service charges and customer billing determinants that are collected or refunded from electricity retailers when they are finalized.