ALLETE, Inc. reports second quarter 2024 earnings
ALLETE, Inc. (NYSE: ALE) reported Q2 2024 earnings of $0.57 per share on net income of $33.0 million, down from $0.90 per share on $51.5 million in Q2 2023. The results include $0.25 per share in merger-related transaction expenses and a $0.04 per share negative impact from mild weather. Key highlights:
- Merger with Canada Pension Plan Investment Board and Global Infrastructure Partners progressing as planned, expected to close mid-2025
- Minnesota Power's RFPs for new solar and wind projects advancing
- ALLETE Clean Energy began selling production tax credits under the Inflation Reduction Act
- Regulated Operations segment net income decreased to $33.7 million from $37.8 million year-over-year
- ALLETE Clean Energy net income declined to $2.4 million from $3.1 million
- Corporate and Other businesses recorded a net loss of $3.1 million compared to $10.6 million net income in 2023
ALLETE, Inc. (NYSE: ALE) ha riportato un utile del secondo trimestre 2024 di $0.57 per azione, con un reddito netto di $33,0 milioni, in calo rispetto a $0.90 per azione e $51,5 milioni nel secondo trimestre 2023. I risultati includono $0.25 per azione in spese relative a transazioni di fusione e un impatto negativo di $0.04 per azione dovuto a un clima mite. Ecco i punti salienti:
- La fusione con il Canada Pension Plan Investment Board e Global Infrastructure Partners sta procedendo come previsto, ci si aspetta che si chiuda a metà 2025
- I bandi di Minnesota Power per nuovi progetti solari e eolici stanno avanzando
- ALLETE Clean Energy ha iniziato a vendere crediti d'imposta sulla produzione ai sensi dell'Inflation Reduction Act
- Il reddito netto del segmento delle Operazioni Regolate è diminuito a $33,7 milioni dai $37,8 milioni dell'anno precedente
- Il reddito netto di ALLETE Clean Energy è sceso a $2,4 milioni dai $3,1 milioni
- Le imprese Corporate e Altre hanno registrato una perdita netta di $3,1 milioni rispetto a un reddito netto di $10,6 milioni nel 2023
ALLETE, Inc. (NYSE: ALE) reportó ganancias del segundo trimestre de 2024 de $0.57 por acción con un ingreso neto de $33.0 millones, en comparación con $0.90 por acción y $51.5 millones en el segundo trimestre de 2023. Los resultados incluyen $0.25 por acción en gastos relacionados con transacciones de fusión y un impacto negativo de $0.04 por acción debido al clima templado. Principales puntos destacados:
- La fusión con el Canada Pension Plan Investment Board y Global Infrastructure Partners avanza según lo planeado, se espera que se cierre a mediados de 2025
- Las solicitudes de propuesta de Minnesota Power para nuevos proyectos solares y eólicos están avanzando
- ALLETE Clean Energy comenzó a vender créditos fiscales por producción bajo la Inflation Reduction Act
- El ingreso neto del segmento de Operaciones Reguladas disminuyó a $33.7 millones desde $37.8 millones año con año
- El ingreso neto de ALLETE Clean Energy cayó a $2.4 millones desde $3.1 millones
- Las empresas Corporativas y Otras registraron una pérdida neta de $3.1 millones comparado con un ingreso neto de $10.6 millones en 2023
ALLETE, Inc. (NYSE: ALE)는 2024년 2분기 주당 $0.57의 수익을 기록했으며, 순이익은 $33.0 백만으로 2023년 2분기 $0.90와 $51.5 백만에서 감소했습니다. 이번 결과에는 합병 관련 거래 비용으로 주당 $0.25와 온화한 날씨로 인한 주당 $0.04의 부정적 영향이 포함되어 있습니다. 주요 하이라이트:
- 캐나다 연금 계획 투자 위원회 및 글로벌 인프라 파트너와의 합병이 계획대로 진행 중이며, 2025년 중반에 마감될 예정입니다
- 미네소타 파워의 새로운 태양광 및 풍력 프로젝트의 제안 요청이 발전하고 있습니다
- ALLETE 클린 에너지가 인플레이션 감축 법에 따라 생산세 공제를 판매하기 시작했습니다
- 규제 운영 부문 순이익이 전년 대비 $37.8 백만에서 $33.7 백만으로 감소했습니다
- ALLETE 클린 에너지의 순이익이 $3.1 백만에서 $2.4 백만으로 줄었습니다
- 기업 및 기타 사업은 2023년의 순이익 $10.6 백만에 비해 $3.1 백만의 순손실을 기록했습니다
ALLETE, Inc. (NYSE: ALE) a annoncé un bénéfice pour le deuxième trimestre 2024 de 0,57 $ par action avec un revenu net de 33,0 millions de dollars, en baisse par rapport à 0,90 $ par action et 51,5 millions de dollars au deuxième trimestre 2023. Les résultats incluent 0,25 $ par action en frais de transaction liés à la fusion et un impact négatif de 0,04 $ par action en raison d'un temps doux. Points clés :
- La fusion avec le Canada Pension Plan Investment Board et Global Infrastructure Partners progresse comme prévu, la clôture étant attendue pour mi-2025
- Les appels d'offres de Minnesota Power pour de nouveaux projets solaires et éoliens avancent
- ALLETE Clean Energy a commencé à vendre des crédits d'impôt sur la production dans le cadre de l'Inflation Reduction Act
- Le revenu net du segment des opérations réglementées a diminué à 33,7 millions de dollars contre 37,8 millions de dollars d'une année sur l'autre
- Le revenu net d'ALLETE Clean Energy a diminué à 2,4 millions de dollars contre 3,1 millions de dollars
- Les activités d'entreprise et autres ont enregistré une perte nette de 3,1 millions de dollars par rapport à un bénéfice net de 10,6 millions de dollars en 2023
ALLETE, Inc. (NYSE: ALE) berichtete im zweiten Quartal 2024 einen Gewinn von $0.57 pro Aktie bei einem Nettogewinn von $33,0 Millionen, was einem Rückgang von $0.90 pro Aktie und $51,5 Millionen im zweiten Quartal 2023 entspricht. Die Ergebnisse beinhalten $0.25 pro Aktie an mit Fusionen verbundenen Transaktionskosten und einen negativen Einfluss von $0.04 pro Aktie aufgrund milder Wetterbedingungen. Wichtige Punkte:
- Die Fusion mit dem Canada Pension Plan Investment Board und Global Infrastructure Partners verläuft planmäßig und wird voraussichtlich Mitte 2025 abgeschlossen sein
- Die Ausschreibungen von Minnesota Power für neue Solar- und Windprojekte schreiten voran
- ALLETE Clean Energy hat begonnen, Produktionssteuergutschriften im Rahmen des Inflation Reduction Act zu verkaufen
- Das Nettoeinkommen des regulierten Betriebssegments sank von $37,8 Millionen auf $33,7 Millionen im Jahresvergleich
- Das Nettoeinkommen von ALLETE Clean Energy ging von $3,1 Millionen auf $2,4 Millionen zurück
- Unternehmens- und andere Bereiche verzeichneten einen Nettoverlust von $3,1 Millionen im Vergleich zu einem Nettogewinn von $10,6 Millionen im Jahr 2023
- ALLETE Clean Energy began selling production tax credits under the Inflation Reduction Act
- Minnesota Power's RFPs for new solar and wind projects are progressing as planned
- New Energy Equity is executing on its strategy and robust pipeline of projects
- Implementation of interim rates at Minnesota Power, net of reserves
- Higher transmission margins at Minnesota Power
- Q2 2024 earnings per share decreased to $0.57 from $0.90 year-over-year
- Net income declined to $33.0 million from $51.5 million in Q2 2023
- $0.25 per share in merger-related transaction expenses
- $0.04 per share negative impact due to mild weather
- Higher operating and maintenance expenses at Minnesota Power
- Increased depreciation expenses at Minnesota Power
- Forced network outage near Caddo wind energy facility and transformer outage at Diamond Springs wind energy facility
Insights
ALLETE's Q2 2024 results present a mixed picture, with earnings per share dropping to
- Net income fell to
$33.0 million from$51.5 million year-over-year. - Merger-related transaction expenses accounted for
$0.25 per share. - Mild weather negatively impacted earnings by
$0.04 per share. - The Regulated Operations segment saw a decline in net income from
$37.8 million to$33.7 million . - ALLETE Clean Energy's net income decreased slightly from
$3.1 million to$2.4 million . - Corporate and Other businesses swung from a
$10.6 million profit to a$3.1 million loss.
The company's performance was affected by several one-time factors, making it important to look beyond the headline numbers. The merger with Canada Pension Plan Investment Board and Global Infrastructure Partners, while incurring short-term expenses, could potentially bring long-term strategic benefits. Investors should closely monitor the progress of this merger, expected to close in mid-2025.
Despite the challenges, ALLETE is making strides in its clean energy initiatives, with Minnesota Power advancing solar and wind project proposals and ALLETE Clean Energy beginning to leverage the Inflation Reduction Act benefits. These moves align with the broader industry trend towards renewable energy and could position the company for future growth.
ALLETE's Q2 2024 results highlight the complex dynamics at play in the evolving energy sector. The company's performance was impacted by both internal strategic moves and external factors:
- Weather sensitivity: The
$0.04 per share negative impact due to mild weather underscores the ongoing challenge utilities face with climate variability. - Clean energy transition: ALLETE Clean Energy's sale of production tax credits demonstrates the company's ability to capitalize on the Inflation Reduction Act, a key policy driver in the renewable energy space.
- Infrastructure challenges: The forced network outage near the Caddo wind facility and the transformer outage at Diamond Springs highlight the operational risks in renewable energy projects.
- Regulatory environment: The implementation of interim rates and associated reserves in the Regulated Operations segment reflects the ongoing regulatory pressures faced by utilities.
Looking ahead, ALLETE's strategic positioning in renewable energy, particularly through ALLETE Clean Energy and New Energy Equity, aligns well with the broader industry shift towards cleaner power sources. The company's progress on solar and wind project proposals indicates a commitment to this transition.
However, investors should be mindful of the potential execution risks associated with these projects and the ongoing regulatory challenges in the utility sector. The pending merger, while potentially transformative, also introduces uncertainty that market participants will need to factor into their assessments of ALLETE's future prospects.
“I am proud of our entire ALLETE team, working diligently on many fronts to execute our Sustainability in Action strategy in tandem with initiatives as part of the exciting announcement of the merger agreement with Canada Pension Plan Investment Board and Global Infrastructure Partners. We are pleased that key regulatory filings with the Federal Energy Regulatory Commission, the Minnesota Public Utilities Commission and the Public Service Commission of
ALLETE’s Regulated Operations segment, which includes Minnesota Power, Superior Water, Light and Power and the Company’s investment in the American Transmission Company, recorded second quarter 2024 net income of
ALLETE Clean Energy recorded second quarter 2024 net income of
Corporate and Other businesses, which include New Energy, BNI Energy, ALLETE Properties and our investments in renewable energy facilities, recorded a net loss of
“Similar to this year’s first quarter, the second quarter results reflect items not included in our original 2024 expectations, including merger related transaction expenses, milder weather negatively impacting sales to residential and commercial customers, and the implementation of interim rate reserves as a result of the rate case settlement,” said ALLETE Senior Vice President and Chief Financial Officer Steve Morris. “Excluding these items, results for our Regulated Operations segment year to date were on track with our internal expectations, New Energy's financial results were as expected, and ALLETE Clean Energy’s results were lower than our expectations primarily due to a third-party network outage and a transformer outage at ALLETE Clean Energy’s wind energy facilities in
ALLETE is an energy company headquartered in
The statements contained in this release and statements that ALLETE may make orally in connection with this release that are not historical facts, are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties and investors are directed to the risks discussed in documents filed by ALLETE with the Securities and Exchange Commission.
ALLETE's press releases and other communications may include certain non-Generally Accepted Accounting Principles (GAAP) financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company's financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the company's financial statements.
Non-GAAP financial measures utilized by the Company include presentations of earnings (loss) per share. ALLETE's management believes that these non-GAAP financial measures provide useful information to investors by removing the effect of variances in GAAP reported results of operations that are not indicative of changes in the fundamental earnings power of the Company's operations. Management believes that the presentation of the non-GAAP financial measures is appropriate and enables investors and analysts to more accurately compare the company's ongoing financial performance over the periods presented.
ALLETE, Inc. Consolidated Statement of Income Millions Except Per Share Amounts - Unaudited |
||||||||||||
|
Quarter Ended |
Six Months Ended |
||||||||||
|
June 30, |
June 30, |
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Operating Revenue |
|
|
|
|
||||||||
Contracts with Customers – Utility |
$ |
279.8 |
|
$ |
292.2 |
|
$ |
618.1 |
|
$ |
604.8 |
|
Contracts with Customers – Non-utility |
|
73.5 |
|
|
239.9 |
|
|
137.2 |
|
|
490.9 |
|
Other – Non-utility |
|
1.2 |
|
|
1.3 |
|
|
2.5 |
|
|
2.6 |
|
Total Operating Revenue |
|
354.5 |
|
|
533.4 |
|
|
757.8 |
|
|
1,098.3 |
|
Operating Expenses |
|
|
|
|
||||||||
Fuel, Purchased Power and Gas – Utility |
|
107.3 |
|
|
107.3 |
|
|
240.8 |
|
|
225.9 |
|
Transmission Services – Utility |
|
1.6 |
|
|
23.5 |
|
|
24.3 |
|
|
43.6 |
|
Cost of Sales – Non-utility |
|
31.8 |
|
|
193.2 |
|
|
56.2 |
|
|
403.7 |
|
Operating and Maintenance |
|
102.1 |
|
|
84.9 |
|
|
193.8 |
|
|
170.6 |
|
Depreciation and Amortization |
|
66.0 |
|
|
62.8 |
|
|
131.0 |
|
|
125.1 |
|
Taxes Other than Income Taxes |
|
16.3 |
|
|
8.2 |
|
|
35.0 |
|
|
27.6 |
|
Total Operating Expenses |
|
325.1 |
|
|
479.9 |
|
|
681.1 |
|
|
996.5 |
|
Operating Income |
|
29.4 |
|
|
53.5 |
|
|
76.7 |
|
|
101.8 |
|
Other Income (Expense) |
|
|
|
|
||||||||
Interest Expense |
|
(20.1 |
) |
|
(21.1 |
) |
|
(40.5 |
) |
|
(40.4 |
) |
Equity Earnings |
|
5.9 |
|
|
5.4 |
|
|
11.4 |
|
|
11.4 |
|
Other |
|
5.9 |
|
|
2.5 |
|
|
14.5 |
|
|
6.6 |
|
Total Other Expense |
|
(8.3 |
) |
|
(13.2 |
) |
|
(14.6 |
) |
|
(22.4 |
) |
Income Before Income Taxes |
|
21.1 |
|
|
40.3 |
|
|
62.1 |
|
|
79.4 |
|
Income Tax Expense (Benefit) |
|
1.4 |
|
|
(0.4 |
) |
|
5.4 |
|
|
1.1 |
|
Net Income |
|
19.7 |
|
|
40.7 |
|
|
56.7 |
|
|
78.3 |
|
Net Loss Attributable to Non-Controlling Interest |
|
(13.3 |
) |
|
(10.8 |
) |
|
(27.0 |
) |
|
(31.4 |
) |
Net Income Attributable to ALLETE |
$ |
33.0 |
|
$ |
51.5 |
|
$ |
83.7 |
|
$ |
109.7 |
|
Average Shares of Common Stock |
|
|
|
|
||||||||
Basic |
|
57.7 |
|
|
57.3 |
|
|
57.7 |
|
|
57.3 |
|
Diluted |
|
57.8 |
|
|
57.4 |
|
|
57.7 |
|
|
57.4 |
|
Basic Earnings Per Share of Common Stock |
$ |
0.57 |
|
$ |
0.90 |
|
$ |
1.45 |
|
$ |
1.91 |
|
Diluted Earnings Per Share of Common Stock |
$ |
0.57 |
|
$ |
0.90 |
|
$ |
1.45 |
|
$ |
1.91 |
|
Dividends Per Share of Common Stock |
$ |
0.705 |
|
$ |
0.6775 |
|
$ |
1.41 |
|
$ |
1.355 |
|
Consolidated Balance Sheet Millions - Unaudited |
||||||||||
|
Jun. 30, |
Dec. 31, |
|
|
Jun. 30, |
Dec. 31, |
||||
|
2024 |
2023 |
|
|
2024 |
2023 |
||||
Assets |
|
|
|
Liabilities and Equity |
|
|
||||
Cash and Cash Equivalents |
$ |
37.5 |
$ |
71.9 |
|
Current Liabilities |
$ |
297.6 |
$ |
377.6 |
Other Current Assets |
|
394.7 |
|
396.2 |
|
Long-Term Debt |
|
1,746.0 |
|
1,679.9 |
Property, Plant and Equipment – Net |
|
5,079.5 |
|
5,013.4 |
|
Deferred Income Taxes |
|
215.6 |
|
192.7 |
Regulatory Assets |
|
394.7 |
|
425.4 |
|
Regulatory Liabilities |
|
561.0 |
|
574.0 |
Equity Investments |
|
336.0 |
|
331.2 |
|
Defined Benefit Pension and Other Postretirement Benefit Plans |
|
135.0 |
|
160.8 |
Goodwill and Intangibles – Net |
|
155.4 |
|
155.4 |
|
Other Non-Current Liabilities |
|
310.5 |
|
264.3 |
Other Non-Current Assets |
|
263.5 |
|
262.9 |
|
Redeemable Non-Controlling Interest |
|
0.9 |
|
0.5 |
|
|
|
|
Equity |
|
3,394.7 |
|
3,406.6 |
||
Total Assets |
$ |
6,661.3 |
$ |
6,656.4 |
|
Total Liabilities, Redeemable Non-Controlling Interest and Equity |
$ |
6,661.3 |
$ |
6,656.4 |
|
Quarter Ended |
Six Months Ended |
||||||||
ALLETE, Inc. |
June 30, |
June 30, |
||||||||
Income (Loss) |
|
2024 |
|
|
2023 |
|
2024 |
|
|
2023 |
Millions |
|
|
|
|
||||||
Regulated Operations |
$ |
33.7 |
|
$ |
37.8 |
$ |
77.9 |
|
$ |
78.4 |
ALLETE Clean Energy |
|
2.4 |
|
|
3.1 |
|
6.2 |
|
|
11.6 |
Corporate and Other |
|
(3.1 |
) |
|
10.6 |
|
(0.4 |
) |
|
19.7 |
Net Income Attributable to ALLETE |
$ |
33.0 |
|
$ |
51.5 |
$ |
83.7 |
|
$ |
109.7 |
Diluted Earnings Per Share |
$ |
0.57 |
|
$ |
0.90 |
$ |
1.45 |
|
$ |
1.91 |
Statistical Data |
|
|
|
|
||||||
Corporate |
|
|
|
|
||||||
Common Stock |
|
|
|
|
||||||
High |
$ |
65.86 |
$ |
66.69 |
$ |
65.86 |
$ |
66.69 |
||
Low |
$ |
56.66 |
$ |
56.68 |
$ |
55.86 |
$ |
56.68 |
||
Close |
$ |
62.35 |
$ |
57.97 |
$ |
62.35 |
$ |
57.97 |
||
Book Value |
$ |
48.86 |
$ |
47.63 |
$ |
48.86 |
$ |
47.63 |
||
Kilowatt-hours Sold |
|
|
|
|
Millions |
|
|
|
|
Regulated Utility |
|
|
|
|
Retail and Municipal |
|
|
|
|
Residential |
225 |
241 |
531 |
562 |
Commercial |
307 |
320 |
645 |
667 |
Industrial |
1,729 |
1,778 |
3,527 |
3,436 |
Municipal |
105 |
110 |
230 |
238 |
Total Retail and Municipal |
2,366 |
2,449 |
4,933 |
4,903 |
Other Power Suppliers |
579 |
786 |
1,336 |
1,482 |
Total Regulated Utility Kilowatt-hours Sold |
2,945 |
3,235 |
6,269 |
6,385 |
Regulated Utility Revenue |
|
|
|
|
||||||
Millions |
|
|
|
|
||||||
Regulated Utility Revenue |
|
|
|
|
||||||
Retail and Municipal Electric Revenue |
|
|
|
|
||||||
Residential |
$ |
34.4 |
$ |
33.2 |
$ |
81.1 |
$ |
75.6 |
||
Commercial |
|
42.9 |
|
42.9 |
|
90.3 |
|
86.9 |
||
Industrial |
|
146.3 |
|
139.7 |
|
304.8 |
|
283.1 |
||
Municipal |
|
7.4 |
|
7.6 |
|
16.4 |
|
16.5 |
||
Total Retail and Municipal Electric Revenue |
|
231.0 |
|
223.4 |
|
492.6 |
|
462.1 |
||
Other Power Suppliers |
|
30.4 |
|
36.3 |
|
70.4 |
|
72.2 |
||
Other (Includes Water and Gas Revenue) |
|
18.4 |
|
32.5 |
|
55.1 |
|
70.5 |
||
Total Regulated Utility Revenue |
$ |
279.8 |
$ |
292.2 |
$ |
618.1 |
$ |
604.8 |
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240801632392/en/
Investor:
Vince Meyer
218-723-3952
vmeyer@allete.com
Source: ALLETE, Inc.
FAQ
What were ALLETE's (ALE) earnings per share in Q2 2024?
How did the merger agreement impact ALLETE's (ALE) Q2 2024 results?
When is ALLETE's (ALE) merger with Canada Pension Plan Investment Board and Global Infrastructure Partners expected to close?
How did weather conditions affect ALLETE's (ALE) Q2 2024 performance?
What was the performance of ALLETE Clean Energy in Q2 2024 compared to Q2 2023?
