Algonquin Power & Utilities Corp. ( AQNB ) shares are trading higher after the company reported fourth-quarter FY23 results.

Revenue declined 11% Y/Y to $666.9 million, beating the consensus of $653.0 million.

The Regulated Services Group recorded a revenue decline of 11% Y/Y to $564.9 million, with Divisional Operating Profit growth of 11% led by the implementation of new rates and recovery of investments at the CalPeco, Empire, Granite State, and Bermuda Electric Systems as well as the Park Water and Pine Bluff Water Systems.

Renewable Energy Group revenue declined 7% Y/Y to $82.1 million, and operating profit grew 6% Y/Y to $107.6 million. The company’s renewable energy group placed about 453 MW of new wind and solar generation in service in 2023. 

Adjusted EBITDA rose 13% Y/Y to $334.3 million. Adjusted Net Earnings rose 18% Y/Y to $115.5 million in the quarter.

Adjusted Funds from Operations rose 4% Y/Y to $198.9 million. Adjusted EPS of $0.16 beat the consensus of $0.15. 

Operating cash flow decreased 6% Y/Y to $200.7 million in the quarter.

Dividend: The company approved a dividend per share of $0.1085, payable on April 15, 2024, to the shareholders of record as of March 28, 2024.

Outlook: Algonquin Power & Utilities ( AQNB ) says it is not providing adjusted EPS guidance for 2024, citing uncertainty regarding the planned sale of its renewable energy business.

Chris Huskilson, Interim Chief Executive Officer, said, “We expect 2024 to be a transition year as we seek to reposition the Company towards a more efficient operating profile and a renewed strategy for the future.” 

“Despite headwinds in 2023, we made progress. Our Regulated Services Group posted double-digit Divisional Operating Profit growth primarily from new rate implementations, reflecting recovery of and returns on investments we made in our systems. Additionally, our renewables business placed in service 453 MW of wind and solar generation.”

Price Action: AQN shares are up 2.86% at $6.285 on the last check Friday.