By Robb M. Stewart

Algonquin Power & Utilities' third-quarter loss widened sharply despite modest growth in revenue as the company moved to exit certain operations.

The electricity and water utility recorded a loss attributable to shareholders of $1.31 billion, or $1.71 a share, against a year-earlier loss of $174.5 million, or 26 cents a share. The result included a loss from operations Algonquin has classified as discontinued of $1.34 billion.

Stripping out discontinued operations and certain other items, earnings before interest, taxes, depreciation and amortization was up 3.7% to $264.4 million. That was below the $288.8 million mean forecast of analysts polled by FactSet.

The Oakville, Ontario company's revenue for the three months edged up 1.5% to $573.2 million. That included a 1.4% rise in regulated services revenue to $563.9 million.

The company said its regulated services operations saw growth with the implementation of new rates, most notably at its Bermuda, CalPeco, Empire Arkansas Electric utilities and New York Water utility, though the new rates were dampened by higher operating expenses and depreciation.

Algonquin has taken steps this year to streamline and strengthen its balance sheet, including an agreed $2.5 billion sale of the majority of its renewable energy business to investment company LS Power and cutting its dividend for the third quarter by 40%. The company on Thursday confirmed its board had approved a payout of 6.5 cents a share, payable Jan. 15 to shareholders of record at the end of December.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

November 07, 2024 07:40 ET (12:40 GMT)

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