Q: The company recently sold a few large assets, a recent deal of their non regulated renewable assets and their 42.2% stake in Atlantica. I can’t see $ figures anywhere but with market cap of $2.55 B USD, I’d hope they got a raised a substantial amount.
How does this affect your view on AQN going forward? What is their current debt? I’m holding at a slight loss in a non registered account and ok holding and collecting yield if there is upside.
How does this affect your view on AQN going forward? What is their current debt? I’m holding at a slight loss in a non registered account and ok holding and collecting yield if there is upside.
5i Research Answer:
AQN got $2.5B for its renewable unit. Debt was $7.5B at the end of September. It is priced well at 11X earnings but of course has reduced the dividend twice in the past 24 months. With the asset sales, consensus calls for a drop in EPS this year (39c to 32c). We would consider it OK for income but really would not expect a lot of upside here.