AUS
NZ
UK
CA
USA
IND
Highlights
- Canada’s utility sector is transitioning towards a carbon-neutral future.
- Boralex Inc. acquired a 50% interest in four 894 MW capacity wind farms in the US.
- Fortis improved its net earnings from US$295 million in 2021 to US$326 million in 2022.
The Canadian utility sector is going through a critical transition as it hopes to contribute to Canada’s energy future by providing top-notch resiliency and sustainability. Canada’s utility sector has made measurable progress in the past few years, which aligns with the federal government’s 2050 net-zero emissions goal.
Due to the possibility of lower-than-average long-term growth rates, investors are gloomy about the Canadian utility sector. Additionally, Canadian utility firms have been producing strong sales past few years. Still, the cost of doing business and the amount of money invested back into the businesses have resulted in lower earnings.
Having said that, let’s glance at two of the top utility stocks on TSX and explore recent developments at both companies:
Boralex Inc. (TSX:BLX):
Boralex mainly engages in developing and operating renewable energy power plants in Canada, France, the USA, and the UK. The power producer has shown a 3-year dividend growth of 1.41per cent and a 5-year dividend growth of 3.62per cent.
Boralex Inc. recently announced the market of completing the acquisition of EDF Renewables North America’s interest (50per cent) in five operating wind farms in the United States. These wind farms have a total installed capacity of 894 MW, out of which 447 MW capacity is owned by EDF Renewables.
With this acquisition, Boralex expects to scale its total installed capacity to 2,956 MW, one more step towards achieving its 2025 Strategic Plan. The company also commissioned 25 MW of solar and wind farms in France last month (December 2022), totalling its installed capacity to 1,133 MW in France.
The BLX stock gained 18.5 per cent in a year and outperformed the Canadian benchmark equity index, which declined slightly over six per cent.
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Fortis Inc. (TSX:FTS):
Fortis Inc. supplies electricity and gas to more than 3.4 million Canadians and Americans as a North American regulated utility provider. The company owns ten utility transmission and distribution assets in Canada and the US.
The Fortis board of directors announced dividends for the first quarter of 2023 on November 17, 2022. Fortis mentioned paying the highest dividend of US$0.346562 and the lowest of US$0.11469, due March 1, 2023.
Apart from the first quarter dividends declaration, the company also shared its Q3 FY22 results. Fortis mentioned generating net earnings of US$326 million in the third quarter of 2022, up from US$295 million in the previous corresponding period.
Bottom Line
Investors should conduct extensive research before making any investment plans in light of the recent volatility in the overall market.
Please note, the above content constitutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
