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Capital Power Says Turbine Shortage May Be Easing
Capital Power says turbine shortage may be easing, with CEO Avik Dey citing early signs of more available equipment.
Key points
- Third-quarter net income attributable to shareholders was $67-million, down from $154-million a year earlier.
- Adjusted funds from operations dipped to $306-million from $369-million, partly attributed to maintenance spending.
- Capital Power aims to grow adjusted funds flow per share by eight to 10 per cent by 2030.
Why it matters. Easing turbine supply could help Capital Power secure equipment for development growth, though Dey cautioned it is too early to say whether the trend will be sustainable.
Capital Power Corp. chief executive Avik Dey told analysts on a third-quarter results call that turbine supply is starting to shift, though asking prices remain high. Third-quarter net income attributable to shareholders fell to $67-million from $154-million, or 37 cents per diluted share versus 94 cents a year earlier. Dey said turbines already spoken for are becoming available sooner, and the company will focus M&A on upgrading existing plants.
Latest updates
Capital Power Says Turbine Shortage May Be Easing
Avik Dey, chief executive of Edmonton-based Capital Power Corp., said there are early signs that the shortage of natural gas turbines may be easing. The power industry has been contending with tight turbine supply amid the artificial intelligence data centre boom. Dey told analysts on a conference call that turbine supply has been one of the industry's biggest constraints on how quickly new power can be delivered. The remarks accompanied the company's third-quarter results, which showed a drop in earnings. The report does not give specific figures for turbine deliveries.