Mr. Colin Jackson reports

CANADIAN UTILITIES REPORTS THIRD QUARTER 2023 EARNINGS

Canadian Utilities Ltd. has released third quarter 2023 adjusted earnings of $87-million (32 cents per share), $33-million (13 cents per share) lower compared with $120-million (45 cents per share) in the third quarter of 2022.

Third quarter earnings attributable to equity owners of the company reported in accordance with international financial reporting standards (IFRS earnings) were $125-million (39 cents per Class A and Class B share), $16-million (six cents per Class A and Class B share) higher compared with $109-million (33 cents per Class A and Class B share) in the third quarter of 2022.

Recent developments:

• 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-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. The company 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 Canadian Utilities' 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 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, the company'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, Canadian Utilities declared a fourth quarter dividend of 44.86 cents per share or $1.79 per Class A non-voting and Class B common share on an annualized basis.

Financial summary and reconciliation of adjusted earnings

The attached table shows a financial summary and reconciliation of adjusted earnings to earnings attributable to equity owners of the company.

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

Teleconference and webcast

Canadian Utilities will hold a live teleconference and webcast at 9 a.m. Mountain Time (11 a.m. Eastern Time) on Thursday, Oct. 26, 2023, at 1-800-319-4610. No pass code is required.

Brian Shkrobot, executive vice-president and chief financial 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 Canadian Utilities teleconference.

Management invites interested parties to listen via live webcast on the Canadian Utilities 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 0440. An archive of the webcast will be available on Oct. 27, 2023, and a transcript of the call will be posted on the Canadian Utilities website within a few business days.

About Canadian Utilities Ltd.

Canadian Utilities and its subsidiary and affiliate companies have approximately 8,000 employees and assets of $23-billion. Canadian Utilities, an Atco company, is a diversified global energy infrastructure corporation delivering essential services and innovative business solutions in utilities (electricity and natural gas transmission and distribution, and international operations), energy infrastructure (energy storage, energy generation, industrial water solutions and clean fuels) and retail energy (electricity and natural gas retail sales, and whole-home solutions).

We seek Safe Harbor.