Capital Power Reports Q2 2018 Result and 7% Dividend Increase for Common Shares

Capital Power (TSX:CPX) has announced its financial results for the quarter ended June 30, 2018.

As quoted in the press release:

Second Quarter Highlights

• Quarterly dividend increased to $0.4475 ($1.79 annualized) per common share, our 5^th consecutive annual increase
• Net cash flows from operating activities of $109 million, up 40% over last year and adjusted funds from operations of $76 million, up 73% over last year
• Purchased and cancelled 1.0 million common shares under the Normal Course Issuer Bid
• Secured additional natural gas delivery capacity for the Genesee site to enable increased natural gas co-firing capacity and allow for future coal to gas conversion

“I am pleased to announce that the Board of Directors has approved a 7% per common share dividend increase effective with the third quarter 2018 dividend payment, which is consistent with our 7% annual dividend growth guidance to 2020,” said Brian Vaasjo, President and CEO of Capital Power. “Our dividend growth is supported by adjusted funds from operations (AFFO) per share growth and our payout ratio target of 45% to 55%.”

Net cash flows from operating activities were $109 million in the second quarter of 2018 compared with $78 million in the second quarter of 2017. Adjusted funds from operations were $76 million in the second quarter of 2018, compared to $44 million in the second quarter of 2017.

Net income attributable to shareholders in the second quarter of 2018 was $70 million and basic earnings per share was $0.57 per share, compared with net income attributable to shareholders of $109 million, and basic earnings per share of $1.03, in the comparable period of 2017. Normalized earnings attributable to common shareholders in the second quarter of 2018, after adjusting for non-recurring items and fair value adjustments, were $23 million or $0.22 per share compared with $26 million or $0.27 per share in the second quarter of 2017.

Net cash flows from operating activities were $252 million for the six months ended June 30, 2018 compared with $177 million for the six months ended June 30, 2017. Adjusted funds from operations were $161 million for the six months of 2018, compared to $132 million in the comparable six month period last year.

Click here to read the full press release.