Mr. Colin Jackson reports

ATCO REPORTS FIRST QUARTER 2024 EARNINGS

Atco Ltd. had first quarter 2024 adjusted earnings of $148-million ($1.32 per share), $11-million (11 cents per share) higher compared with $137-million ($1.21 per share) in the first quarter of 2023.

First quarter earnings attributable to Class I and Class II shares reported in accordance with international financial reporting standards (IFRS earnings) were $147-million ($1.31 per share), $20-million (16 cents per share) lower compared with $167-million ($1.47 per share) in the first quarter of 2023.

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 $28-million rental contract for 363 space rentals units supporting an LNG (liquefied natural gas) facility in the south-central United States. The rental term is expected to commence in the fourth quarter of 2024 for a term of 36 months.
• Awarded a $26-million supply and delivery contract for a 200-person camp in support of a mining project located in the Pilbara, 150 kilometres south of Port Hedland, Western Australia. Manufacturing commenced during the first quarter of 2024 with final delivery anticipated in the third quarter of 2024.
• Awarded a $12-million supply and delivery contract for a 100-person camp and a 64-person camp in Western Australia. Manufacturing concluded during the first quarter of 2024 with final delivery anticipated in the third quarter of 2024.
• Awarded a $11-million supply and delivery contract for 58 blast-resistant, non-processing infrastructure buildings in support of an LNG facility in Western Australia. Manufacturing commenced during the first quarter of 2024 with final delivery anticipated in the fourth quarter of 2024.

Canadian utilities:

• On March 27, 2024, the Alberta Utilities Commission (AUC) issued a decision for Natural Gas Transmission's 2024 to 2026 general rate application. In December, 2023, a comprehensive negotiated settlement agreement (NSA) was reached with all participating interveners, and an application was filed with the AUC in January, 2024. This recent decision approved the NSA for 2024 and 2025 in its entirety but limited the approval to two years.
• In the first quarter of 2024, Atco changed its operating segment structure to better align current strategy and future growth objectives. This change involved creating a new operating segment, Atco Australia, which includes natural gas distribution (Atco Gas Australia) and electricity generation operations (Atco Power Australia) based in Australia. Previously, Atco Australia's natural gas distribution operations were reported in the Atco Energy Systems operating segment and the electricity generation operations were reported in the Atco EnPower operating segment. In addition, Atco Australia's corporate office was included in Canadian utilities corporate and other.
• Incurred $316-million in capital expenditures in the first quarter of 2024, of which 94 per cent was invested in the company's regulated utilities in Atco Energy Systems and Atco Australia, and 6 per cent mainly in Atco EnPower.

Corporate:

• On April 11, 2024, Atco declared a second 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 unaudited consolidated financial statements and management's discussion and analysis for the quarter ended March 31, 2024, 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 with Katie Patrick, executive vice-president, chief financial and investment officer, and Adam Beattie, president, structures, at 10 a.m. Mountain Time (12 p.m. Eastern Time) on Thursday, May 2, 2024, at 1-844-763-8274. No pass code is required.

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 June 2, 2024. Please call 1-855-669-9658 and enter pass code 0790.

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.