Mr. Chris Huskilson reports

ALGONQUIN POWER & UTILITIES CORP. ANNOUNCES 2023 THIRD QUARTER FINANCIAL RESULTS

Algonquin Power & Utilities Corp. has released financial results for the third quarter ended Sept. 30, 2023. All amounts are shown in United States dollars, unless otherwise noted.

"We have launched the sale process for our portfolio of high-quality renewable assets and extensive development pipeline, and we remain focused on appropriate valuation," said Chris Huskilson, interim chief executive officer of Algonquin. "Having now served as interim CEO for three months and met with various stakeholders, I believe the company's two businesses have untapped potential and bright futures ahead. With regards to the quarter, we continued to see constructive growth from rate cases and new development projects year-over-year. However, we also saw those efforts partially offset by unfavourable weather and higher interest rates. On balance, our adjusted net earnings grew at a healthy pace for the quarter."

Third quarter financial results:

• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $281.3-million, an increase of 2 per cent;
• Adjusted net earnings of $79.3-million, an increase of 8 per cent;
• Adjusted net earnings per common share of 11 cents, no change, in each case on a year-over-year basis.

Quarterly results:

• Regulated growth from new rate implementations -- in the third quarter of 2023, the regulated services group recorded a year-over-year revenue increase of $12.1-million due to the implementation of new rates and recovery of investments at the company's CalPeco, Empire, Granite State and Bermuda electric systems as well as the Park water system. New rates were offset by unfavourable weather affecting wind production at Empire Electric's renewable assets.
• Renewable operating performance reduced by unfavourable weather -- the renewable energy group previously added the Deerfield II wind facility, which achieved COD in March, 2023. This growth was offset by more challenging weather conditions at its wind and solar assets.
• New facilities commissioned within the renewable energy group -- on Sept. 16, 2023, the renewable energy group achieved full commercial operations at the 87.6-megawatt Sandy Ridge II wind facility, located in Pennsylvania. The Sandy Ridge II wind facility has agreed to sell its output to a leading technology company, pursuant to a renewable energy purchase agreement. In addition, on Oct. 10, 2023, the renewable energy group achieved full commercial operations at the 108.3 MW Shady Oaks II wind facility, located in Illinois. The Shady Oaks II wind facility has agreed to sell output to a leading financial institution, pursuant to a renewable energy purchase agreement.
• Higher interest expenses reflect growth financing and macro environment -- in the third quarter of 2023, interest expense increased by $19.2-million year-over-year, with approximately one-third of this increase due to the financing of capital deployed in the second half of 2022 and first half of 2023, and approximately two-thirds attributable to the increase in interest rates on variable rate borrowings.
• Empire Electric securitization -- in July, 2023, oral arguments were heard in Empire Electric's appeal of the regulatory decision regarding Empire Electric's securitization of costs incurred in connection with the February, 2021, extreme winter storm and the retirement of the Asbury coal plant. On Aug. 1, 2023, the court affirmed the amount eligible for securitization of $290.4-million as compared with the company's original aggregate request of approximately $363-million. The company intends to securitize in line with the commission's order to recover these costs. The order excludes a portion of carrying costs and taxes which leads to a net after tax loss of $48.5-million.

Algonquin's unaudited interim consolidated financial statements for the three and nine months ended Sept. 30, 2023, and management discussion and analysis for the three and nine months ended Sept. 30, 2023, will be available on its website and in its corporate filings on SEDAR+ (for Canadian filings) and EDGAR (for U.S. filings).

Earnings conference call

Algonquin will hold an earnings conference call at 8:30 a.m. Eastern Time on Friday, Nov. 10, 2023, hosted by interim chief executive officer Mr. Huskilson, and chief financial officer Darren Myers.

Date: Friday, Nov. 10, 2023

Time: 8:30 a.m. ET

Conference call

Toll-free dial-in number: 1-888-596-4144

Toll dial-in number: 1-647-495-7514

Conference ID 6295385

Presentation also available on Algonquin website.

About Algonquin Power & Utilities Corp. and Liberty

Algonquin Power & Utilities, parent company of Liberty, is a diversified international generation, transmission and distribution utility with approximately $18-billion of total assets. Algonquin is committed to providing safe, secure, reliable, cost-effective and sustainable energy and water solutions through its portfolio of generation, transmission and distribution utility investments to over one million customer connections, largely in the United States and Canada. In addition, the company owns, operates and/or has net interests in over four gigawatts of installed renewable energy capacity.

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