CA - Algonquin Power cuts dividend by 40% guides 2022 earnings below consensus
Algonquin Power & Utilities ( NYSE: AQN ) -3.9% pre-market Thursday after saying it will cut its quarterly dividend to $0.1085/share from $0.1808 previously and suspend its dividend reinvestment plan, which it said is aimed at strengthening its financial and strategic positions.
Algonquin ( AQN ) said it expects FY 2023 adjusted net earnings of $0.55-$0.61/share, below $0.70 analyst consensus estimate.
The utility said it plans to target ~$1B of additional asset sales to refocus its portfolio, to be earmarked for debt repayment and to fund its growth.
The company said the steps will help maintaining a "BBB" credit rating, allow it to increase its dividend sustainably, and reduce equity capital needs.
Anticipating Algonquin ( AQN ) would launch aggressive strategic actions to firm its financial footing including a material dividend cut, Wells Fargo recently upgraded the shares .
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Algonquin Power cuts dividend by 40%, guides 2022 earnings below consensus