Mr. Colin Jackson reports

ATCO REPORTS 2023 EARNINGS

Atco Ltd. had adjusted earnings in 2023 of $432-million ($3.82 per share), which were $9-million (11 cents per share) higher compared with $423-million ($3.71 per share) in 2022. Fourth quarter adjusted earnings in 2023 of $127-million ($1.13 per share) were $17-million (16 cents per share) higher compared with $110-million (97 cents per share) in the fourth quarter of 2022.

Two thousand twenty-three earnings attributable to Class I and Class II shares reported in accordance with international financial reporting standards (IFRS earnings) were $432-million ($3.82 per share), which were $62-million (57 cents per share) higher compared with $370-million ($3.25 per share) in 2022. Fourth quarter 2023 IFRS earnings of $95-million (85 cents per share) were $14-million (13 cents per share) higher compared with $81-million (72 cents per share) in the fourth 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

Atco Structures:

• Awarded a $13-million contract to supply a 296-person accommodation complex to be deployed to a gold and silver mine in Western Canada. Delivery of the units is expected in the second quarter of 2024.
• In the fourth quarter of 2023, Atco Structures was awarded a $12-million contract to manufacture, deliver and install 45 work force housing units to BPX Energy operating sites in West Texas. Manufacturing is scheduled to commence in the first quarter of 2024 with installation expected to be complete by the second quarter of 2024.
• Awarded a $12-million contract for the manufacture, transport and installation of a 102-person accommodation camp for a mine in New South Wales. Manufacturing commenced during the fourth quarter of 2023 and full handover and completion is anticipated in the second quarter of 2024.

Atco Frontec:

• On Oct. 24, 2023, Atco Frontec was awarded a contract to provide camp services to Victoria Gold for a 350-bed camp in Yukon, Canada. The contract was mobilized as of Jan. 1, 2024, for a three-year term.

Neltume Ports:

• 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.

Canadian Utilities:

• Received the Alberta Utilities Commission (AUC) decisions with respect to the parameters of the third generation of performance-based regulation and the future generic cost of capital parameters, on Oct. 4, 2023, and Oct. 9, 2023, respectively. It began operating under these new frameworks in 2024.
• The Alberta Court of Appeal issued a favourable decision in the second quarter of 2023 in connection with the Fort McMurray (Wood Buffalo) wildfire. This decision resulted in the AUC issuing its decision in December, 2023, permitting Atco Electric to include the net book value of its electric distribution assets destroyed in the Wood Buffalo fire within rate base.
• In October, 2023, the South Australian government announced an early contractor involvement agreement with Atco Australia and its joint venture partner, BOC Linde, for the South Australian hydrogen jobs plan project, a 250-megawatt 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 operations and maintenance contracts for delivery and operations of the project.
• Incurred $394-million in capital expenditures in the fourth quarter of 2023, of which 91 per cent was invested in Atco Energy Systems and 9 per cent mainly in Atco EnPower.

Corporate:

• On Jan. 11, 2024, Atco declared a first quarter dividend of 48.98 cents per share or $1.96 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 non-voting shares and Class II voting shares is provided herein.

This news release should be read in concert with the full disclosure documents. Atco's consolidated financial statements and management's discussion and analysis for the year ended Dec. 31, 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. Mountain Time (12 p.m. Eastern Time) on Thursday, Feb. 29, 2024, at 1-800-319-4610. No pass code is required.

Katie Patrick, executive vice-president, chief financial and investment officer, and Adam Beattie, president, Structures, will discuss year-end 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 on Atco's website.

A replay of the teleconference will be available approximately two hours after the conclusion of the call until March 29, 2024. Please call 1-800-319-6413 and enter pass code 0638. An archive of the webcast will be available on Feb. 29, 2024, and a transcript of the call will be posted on Atco's website within a few business days.

About Atco Ltd.

As a global enterprise Atco and its subsidiary and affiliate companies have approximately 20,000 employees and assets of $25-billion. Atco is committed to future prosperity by working to meet the world's essential energy, housing, security and transportation challenges. Atco Structures designs, builds and delivers products to service the essential need for housing and shelter around the globe. Atco Frontec provides operational support services to government, defence and commercial clients. Atco Energy Systems delivers essential energy for an evolving world through its electricity and natural gas transmission and distribution, and international operations. Atco EnPower creates sustainable energy solutions in the areas of renewables, energy storage, industrial water and clean fuels. Atco Australia develops, builds, owns and operates energy and infrastructure assets. Atcoenergy and Rumi provide retail electricity and natural gas services, home maintenance services, and professional home advice that bring exceptional comfort, peace of mind and freedom to homeowners and customers. Atco also has investments in ports and transportation logistics, the processing and marketing of fly ash, retail food services, and commercial real estate.

We seek Safe Harbor.