11:43 AM EST, 03/08/2024 (MT Newswires) -- Algonquin Power & Utilities Corp. ( AQNB ) reported Friday an adjusted EPS of US$0.16 in the fourth quarter of 2023, rising year over year from US$0.14.

Revenue fell to US$666.9 million from US$748.0 million and adjusted EBITDA grew 13% to US$334.3 million.

For full-year 2023, Algonquin's adjusted EPS fell 13% to US$0.53 while revenue was down 2% to US$2.70 billion. Adjusted EBITDA increased 4% to US$1.24 billion.

The company declared a dividend of US$0.1085 per share for the fourth quarter of 2023, down 40% year over year. That brought the full-year 2023 dividend to US$0.4340 per share, a 39% decline from last year.

Algonquin said it is not providing an adjusted EPS guidance for 2024, citing the uncertainty regarding the planned sale of its renewable energy business.

"2023 was a decision year for the company, with the termination of the Kentucky Power transaction and announcement of the planned refocusing of the company, including the proposed sale of our renewables business," Interim CEO Chris Huskilson 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."

Algonquin at last look rose 2.8% on both the TSX and the NYSE in early Friday trading.

Meanwhile, National Bank of Canada noted that fourth-quarter 2023 adjusted EBITDA beat the bank's estimate of US$313 million and consensus estimate of US$308 million.

Adjusted EPS for the quarter was also ahead of National Bank's estimate of US$0.12.

The bank said it believes Algonquin's renewables business could fetch a purchase price of US$2.2 billion to US$2.8 billion, though a weaker market for sellers could delay a sale in the near term.

"We believe it is unlikely that a deal is done in the next couple of quarters for the assets AQN operates," National Bank said.

Sale proceeds may be used to reduce debt and fund share repurchases. The transition to a pure-play regulated utility should include a CEO change, which could come in the second half of the year, the bank noted.

National Bank gave Algonquin a sector perform rating and a US$7.25 price target.

Price: 8.48, Change: +0.25, Percent Change: +3.04