AltaGas - Outgoing President and CEO, Randy Crawford.
Outgoing President and CEO, Randy Crawford.
Source: AltaGas.
  • AltaGas (TSX:ALA) has announced its results from it’s Q1 of this year
  • The company was recently acquired by the Alberta Teacher’s Retirement Fund, as they picked up the 11 million common shares of the company held by Alta for C$369 million
  • Normalized EBITDA for the quarter hit $499 million, up 4 per cent over the first quarter of 2019
  • Net income for the quarter reached $220 million, 3 per cent up over 2019’s first quarter
  • AltaGas (ALA) is down 5 per cent at $16.61 per share and has a market cap of $4.4 billion

AltaGas (TSX:ALA) has posted its first quarter results, showing the energy and utilities company has largely survived the COVID-19 crisis intact.

At the end of March, the company announced that the Public Sector Pension investment board and the Alberta Teachers Retirement Fund had closed their purchase of 11 million shares in Alta for a sum of $369 million, representing a 37 per cent of the company.

The company’s financials for the quarter look good, with normalised EBITDA within guidance for the year at $499 million, up over 4 per cent on 2019’s total. Net income for the quarter reached $220 million, again up over last year by 3 per cent.

CEO of AltaGas, Randy Crawford, said the company’s performance was “incredible” when considering the effect COVID-19 has had on energy companies globally, coupled with the buyout by the Alberta Teachers Retirement Fund, the OPEC price war and a host of other factors that have buffeted markets during the quarter.

“Over the last several weeks, the world has dramatically changed around us… communitites have been brought to a stand-still, business abruptly came to a halt and families have been forced to adapt to a new normal.”

“Despite the challenges created by COVID-19, our first quarter financial results reflect the stability and resiliency of our core businesses…our utilities and midstream businesses continue to perform well, providing predictable and reliable earnings despite the disruption to global markets.

“We are well positioned to execute our near-term priorities and deliver stable financial results during these difficult times…with a strong first quarter under our belt and a keen focus on providing safe and reliable services to our customers and communities, we remain on track with our normalised EBITDA guidance of $1.275 – $1.325 billion and normalised earnings per share of between $1.20 and $1.30,” he concluded.

AltaGas (ALA) is down 5 per cent at $16.61 per share, as of 1:41pm EDT.

More From The Market Online

Hertz Energy to acquire mineral claim in Nunavut

Hertz Energy (CSE:HZ) enters into an agreement to acquire 100 per cent interest in a mineral claim in Nunavut.
fueling the future

Fueling the Future: Uranium market activity for the week of May 20

In this weekly feature, The Market Online dives into uranium market activity that has generated intrigue in recent days.