Calgary-based ATCO announced on Thursday third quarter 2019 adjusted earnings of $74 million, or $0.65 per share, compared to $87 million, or $0.76 per share, in the third quarter of 2018.
“Lower third-quarter earnings recorded in Canadian Utilities and ATCO Investments were partially offset by higher earnings in Structures & Logistics and Neltume Ports,” said the company in a news release.
“ATCO Corporate & Other recorded $12 million in lower third quarter 2019 earnings mainly due to lower income from ATCO Investments, which completed two commercial real estate transactions in the third quarter of 2018.”
The company said Structures & Logistics achieved $10 million in higher earnings in the third quarter compared to the same period in 2018, mainly due to strong earnings from the LNG Canada Cedar Valley Lodge project, and space rental fleet earnings.
It added that Neltume Ports contributed $2 million in higher earnings in the third quarter compared to the same period in 2018. On Sept. 12, 2018, ATCO bought a 40 per cent interest of Neltume Ports, a leading port operator and developer in South America.
Canadian Utilities recorded $13 million in lower third quarter 2019 earnings compared to the same period in 2018.
“Modular structures continues to progress on both manufacturing and site construction work for the LNG Canada Cedar Valley Lodge. Throughout the third quarter, modules were delivered and installed on site. The facility is being built to house workers involved in the construction of LNG Canada’s natural gas liquefaction and export facility in Kitimat, B.C.,” said the company. “Manufacturing of a 400-room, two-storey accommodation village in Karratha, Western Australia commenced during the third quarter of 2019. The total contract value is $22 million with final handover expected in April 2020.
“Modular structures completed the final handover of a 600-person camp in Western Australia. Total contract value is $27 million, with ongoing rental earnings from the initial date of occupation in August of 2019 through to early 2021. During the third quarter, modular structures completed a $7-million contract to supply modular product for a Marriott hotel to be situated near San Francisco, Calif. A second $7-million contract to supply modular product for a Marriott hotel in Oakland, Calif., is expected to be complete in early 2020.”