Utilities Business Strong as AltaGas Gains in Q1

Recognising a 10% boost in pre-tax earnings from its utilities business, Canadian gas utility and midstream operator AltaGas on April 30 reported a 4% increase in overall pre-tax earnings in Q1 2020, to C$499mn (US$359mn) from C$482mn a year ago. Normalised net income increased to C$220mn from C$214mn.

The company said its midstream performance in Q1 was strong, but impacted by a C$6mn realised hedge loss on propane volumes exported to Asia in April from its Ridley Island Propane Export Terminal on Canada’s west coast. As a result, pre-tax earnings from the midstream business fell to $120mn from $128mn in Q1 2019.

“Despite the challenges created by Covid-19, our first quarter financial results reflect the stability and resilience of our core businesses,” AltaGas CEO Randy Crawford said. “Our utilities and midstream businesses continue to perform well, providing predictable and reliable earnings despite the disruption to global markets.”