Ms. Katie Patrick reports

ATCO REPORTS THIRD QUARTER 2023 EARNINGS

Atco Ltd. had third quarter 2023 adjusted earnings of $81-million (71 cents per share), $6-million (five cents per share) lower compared with $87-million (76 cents per share) in the third quarter of 2022.

Third quarter earnings attributable to Class I and Class II shares reported in accordance with international financial reporting standards (IFRS earnings) were $91-million (80 cents per share), $20-million (18 cents per share) higher compared with $71-million (62 cents per share) in the third quarter of 2022.

IFRS earnings include timing adjustments related to rate-regulated activities, unrealized gains or losses on mark-to-market forward and swap commodity contracts, one-time gains and losses, impairments, and items that are not in the normal course of business or a result of day-to-day operations. These items are not included in adjusted earnings.

Recent developments

Neltume Ports:

• Subsequent to quarter-end, on Oct. 11, 2023, Vancouver Bulk Terminal, a joint venture between Neltume Ports and Nautilus International Holding Corp., announced it is working with Solvay, a global leader in the soda ash market, on the development of Terminal 2, Berth 7 at the Port of Vancouver, in Washington State. The newly designed terminal will have the capability to annually export more than 2.5 million tonnes of soda ash, supporting soda ash volumes from Solvay's Green River, Wyo., operations while providing additional export capacity to the North American soda ash industry. Construction to allow for the transfer of soda ash is set to begin in 2024 and is expected to be completed in early 2026.

Canadian Utilities:

• Announced a partnership agreement between the Chiniki and Goodstoney First Nations for the Deerfoot and Barlow Solar power projects, the largest solar installation in an urban centre in Western Canada. Under the terms of the agreement, the Chiniki and Goodstoney First Nations have become the majority owners with a 51-per-cent ownership stake in the facilities.
• Entered into a 12.5-year virtual power purchase agreement with Lafarge, an industry leader in sustainable building solutions, in September, 2023. Under the terms of the agreement, Lafarge's Exshaw cement plant will notionally purchase 100 per cent of the solar power generated from the 38.5 MW (megawatt) Empress solar project.
• Received the Alberta Utilities Commission (AUC) decisions with respect to the parameters of the third generation of performance-based regulation (PBR3) and the future generic cost of capital parameters on Oct. 4, 2023, and Oct. 9, 2023, respectively. Atco will begin to operate under these new frameworks in 2024. The receipt of both of these critical regulatory decisions in advance of the respective operating years reinforces the strides the company has seen in reducing regulatory lag.
• In October, 2023, the South Australian government announced an early contractor involvement (ECI) agreement with Atco Australia and the company's joint venture partner BOC Linde for the South Australian hydrogen jobs plan project, a 250 MW hydrogen production facility, a 200 MW hydrogen-fuelled electricity generation facility and a hydrogen storage facility. Activities under this agreement include developing a contract offer price, and negotiation of engineering, procurement, construction, and O&M (operation and maintenance) contracts for delivery and operations of the project. The ECI phase of the project is due for completion in the second quarter of 2024.
• Appointed John Ivulich to chief executive officer and country chair of Atco Australia, Atco's regulated gas utility and non-regulated renewables, power and clean fuels businesses in Australia, effective Oct. 1, 2023.
• Incurred $330-million in capital expenditures in the third quarter of 2023, of which 88 per cent was invested in Atco Energy Systems and 12 per cent mainly in Atco EnPower.

Corporate:

• On Sept. 12, 2023, Atco declared a fourth-quarter dividend of 47.56 cents per share, or $1.90 per share on an annualized basis, per Class I non-voting and Class II voting share.

Financial summary and reconciliation of adjusted earnings

A financial summary of the consolidated subsidiaries of Atco, and a reconciliation of adjusted earnings to earnings attributable to Class I and Class II shares is provided in the associated table.

This news release should be read in concert with the full disclosure documents. Atco's unaudited consolidated financial statements, and management's discussion and analysis for the quarter ended Sept. 30, 2023, will be available on the Atco website, via SEDAR+, or can be requested from the company.

Teleconference and webcast

Atco will hold a live teleconference and webcast at 10 a.m. MT (12 p.m. ET) on Thursday, Oct. 26, 2023, at 1-800-319-4610. No pass code is required.

Katie Patrick, executive vice-president, chief financial and investment officer, will discuss third quarter 2023 financial results and recent developments. Opening remarks will be followed by a question-and-answer period with investment analysts. Participants are asked to please dial in 10 minutes prior to the start and request to join the Atco teleconference.

Management invites interested parties to listen via live webcast at the company's website.

A replay of the teleconference will be available approximately two hours after the conclusion of the call until Nov. 26, 2023. Please call 1-800-319-6413 and enter pass code 0443. An archive of the webcast will be available on Oct. 27, 2023, and a transcript of the call will be posted on the company's website within a few business days.

About Atco Ltd.

Atco and its subsidiary and affiliate companies have approximately 19,000 employees and assets of $25-billion. Atco is a diversified global corporation with investments in the essential services of structures and logistics (work force and residential housing, innovative modular facilities, construction, site support services, work force lodging services, facility operations and maintenance, defence operations services, and disaster and emergency management services); utilities (electricity and natural gas transmission and distribution, and international operations); energy infrastructure (energy storage, energy generation, industrial water solutions and clean fuels); retail energy (electricity and natural gas retail sales, and whole-home solutions); transportation (ports and transportation logistics); and commercial real estate.

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