Mr. Brian Shkrobot reports

CANADIAN UTILITIES REPORTS 2023 EARNINGS

Canadian Utilities Ltd. had adjusted earnings in 2023 of $596-million ($2.21 per share), which were $59-million (22 cents per share) lower compared with $655-million ($2.43 per share) in 2022. Fourth quarter adjusted earnings in 2023 of $192-million (71 cents per share), were $12-million (five cents per share) higher compared with $180-million (66 cents per share) in the fourth quarter of 2022.

Two thousand twenty-three earnings attributable to equity owners of the company, reported in accordance with international financial reporting standards (IFRS), were $707-million ($2.33 per Class A and Class B share), which were $75-million (26 cents per Class A and Class B share) higher compared with $632-million ($2.07 per Class A and Class B share) in 2022. Fourth quarter earnings attributable to equity owners of the company reported in accordance with international financial reporting standards were $185-million (61 cents per Class A and Class B share), $40-million (15 cents per Class A and Class B share) higher compared with $145-million (46 cents per Class A and Class B 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, as well as dividends on equity preferred shares of the company, are not included in adjusted earnings.

Recent developments:

• 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. The company 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 the company's joint venture partner, BOC Linde, for the South Australian hydrogen jobs plan project, a 250 MW (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. 19, 2024, the company announced the retirement of Brian P. Shkrobot, executive vice-president and chief financial officer, effective March 1, 2024. Concurrently, it was announced that, with the support of the Canadian Utilities' board of directors, Katie Patrick, executive vice-president, chief financial and investment officer, Atco, will broaden her portfolio to include chief financial officer for Canadian Utilities, effective March 1, 2024.
• On Jan. 11, 2024, Canadian Utilities declared a first-quarter dividend of 45.31 cents per share, or $1.81 per Class A and Class B share on an annualized basis.

Financial summary and reconciliation of adjusted earnings

A financial summary and reconciliation of adjusted earnings to earnings attributable to equity owners of the company is provided in the associated table.

This news release should be read in concert with the full disclosure documents. Canadian Utilities' consolidated financial statements, and management's discussion and analysis for the year ended Dec. 31, 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, Feb. 29, 2024, at 1-800-319-4610. No pass code is required.

Brian Shkrobot, executive vice-president and chief financial officer, Wayne Stensby, chief operating officer, Atco Energy Systems, and Bob Myles, chief operating officer, Atco EnPower, 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 Canadian Utilities teleconference.

Management invites interested parties to listen via live webcast at the Canadian Utilities 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 0640. An archive of the webcast will be available on Feb. 29, 2024, and a transcript of the call will be posted on the company's website within a few business days.

About Canadian Utilities Ltd.

Canadian Utilities and its subsidiary and affiliate companies have approximately 9,000 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. Atco Energy Systems delivers energy for an evolving world through its electricity and natural gas transmission and distribution, and international operations segments. 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.

We seek Safe Harbor.