Q2 2024 Capital Power Corp Earnings Call Transcript
Key Points
- Capital Power Corp (CPXWF) achieved significant milestones by delivering 9 terawatt hours of reliable and affordable power in Q2 2024, including contributions from newly acquired assets.
- The company completed simple cycle commercial operations on Genesee Units 1 and 2, achieving 100% off-coal status five years ahead of the government mandate.
- Capital Power Corp (CPXWF) entered into a Power Purchase Agreement (PPA) with Duke Energy for North Carolina solar projects, enhancing cash flow stability.
- The US business segment showed strong growth, with adjusted EBITDA contribution rising from 26% in Q2 2023 to 43% in Q2 2024.
- The company successfully closed a $450 million hybrid bond offering, which was more than two times oversubscribed, demonstrating strong investor confidence.
- Overall financial results for Q2 2024 were modestly lower year-over-year due to lower generation and captured prices from the Alberta commercial segment.
- Adjusted EBITDA for the first half of 2024 was $126 million lower year-over-year, impacted by lower Alberta power prices and outages at Genesee.
- The company is facing tightness in its FFO to debt ratio for 2024, which is right on top of the thresholds for maintaining its investment-grade status.
- The Alberta market is experiencing lower power prices and less volatility, which could impact future revenue projections.
- Capital Power Corp (CPXWF) is in a transition year with Genesee repowering, leading to lower cash flow and generation in the short term.
Good day and thank you for standing by. Welcome to the 2024 second quarter Capital Power analyst conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Roy Arthur, Vice President of Investor Relations. Please go ahead.
Good morning and thank you for joining us to review Capital Power's second quarter 2024 results, which we released earlier today. Our second quarter report and the presentation for this conference call are posted on our website at capitalpower.com.
First, our call will feature business highlights that will be represented by Avik Dey, President and CEO; then Sandra Haskins, our Senior Vice President of Finance and CFO, will provide a review of the financial performance of the business.
Once we have finished discussing the quarter for Capital Power, Pauline McLean, our Senior Vice President External Relations and Chief Legal Officer,
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