Sector Update: Utilities; Fortis Completes UNS Energy Buy, Algonquin Power Reports Earnings
Utility shares were generally higher in mid-afternoon trading, with the S&P/TSX Utilities index up 0.3%.
Fortis (FTS.TO): +0.2%
Algonquin Power & Utilities (AQN.TO): +0.5%
ATCO (ACO-X.TO): +0.1%
TransAlta (TA.TO): +0.2%
Canadian Utilities (CU.TO): +0.03%
In corporate news, Fortis has completed the transaction to acquire all of the outstanding shares of UNS Energy Corporation for an aggregate purchase price of approximately US$4.5 billion, including the assumption of approximately US$2.0 billion of debt.
Meanwhile, Algonquin Power & Utilities reported adjusted net earnings of $16.5 million or $0.07 per share in the second quarter of 2014 compared to $14.9 million or $0.07 per share in the second quarter of 2013. APUC reported adjusted net earnings of $53.3 million or $0.24 per share as compared to $34.5 million or $0.16 per share for the first six months of 2013.
On August 14, 2014 , APUC approved a dividend increase from a total annual dividend of C$0.34 to a total annual dividend of US$0.35, paid quarterly at a rate of US$0.0875 per common share. Based on the Bank of Canada noon U.S. dollar exchange rate as of August 14, 2014, the change in dividend is an equivalent dividend of C$0.382 which represents a near 12.4% annual increase. It said: "The change in the currency of the dividend better aligns APUC's dividend policy with the currency profile of its cash flows, which are predominantly generated in the U.S."
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