By Ketki Saxena
Investing.com -- Algonquin Power (TSX:AQN) & Utilities has announced its plans to exit the renewables business, with the sale of its wind and solar power portfolio across 11 U.S. states and six Canadian provinces.
On a post-earnings conference call with analysts, Algonquin's new interim CEO , Christopher Huskilson, noted that Algonquin now aims to become a "pure-play" utility provider.
"Clean, affordable and reliable energy and water will be the focus of our regulated business," Huskilson said on Thursday.
Huskilson did not comment on how much the company expects to receive from the sale of its renewable energy business, stating that he did not wish to influence the competitive process.
However, he stated that the portfolio - which he suggested will be "very attractive to the marketplace", and has already received interest from potential buyers.
"We're not going to give these assets away," Huskilson said. "We have actually had inbounds already, and some very interesting opportunities where people are interested in new portfolios, and this is one. It is a portfolio at scale. It has a tremendous development pipeline".
The announcement follows Algonquin's 2nd quarter results.
Algonquin posted a second-quarter earnings loss attributable to shareholders of US$253.2 million in the quarter ended June 30 compared to a US$33.4 million loss in the same period a year earlier.
Adjusted net earnings fell to eight cents per share from 16 cents per share.
Second-quarter revenue came in at US$627.9 million, up from US$619.4 million a year prior.
Today's announcement follows Algonquin's announcement of a strategic review in May, after pressure from activist investors as Algonquin's share prices fell, and criticism about its surging debt due to recent acquisitions.