Atco reports lower Q1 profit, says COVID-19 may cause delays, labour shortages

CALGARY — Atco Ltd. says it had lower revenue and a reduced profit of $174 million profit in the first quarter, down from $226 million a year earlier.

Adjusted earnings fell to $106 million or 93 cents per share from $112 million or 98 cents per share.

Revenue fell to $1.06 billion from $1.32 billion.

Atco attributed the drop in adjusted earnings and lower revenue to sales of its Canadian fossil-fuel generation portfolio and Alberta PowerLine last year.

It said the COVID-19 pandemic isn't having a material impact on the earnings of its utility or power infrastructure businesses, but project delays and disruptions, labour shortages and shutdowns could affect other operations.

It said Atco Structures anticipates customers may delay decisions on modular building projects, occupancy rates at its ATCO Frontenac camps are down, while its Canadian Utilities arm is reviewing its capital investment plan and may reduce or postpone spending.

This report by The Canadian Press was first published May 1, 2020.

Companies in this story: (TSX:ACO.X, TSX:ACO.Y)

The Canadian Press

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