Most utilities again record drop in recurring EBITDA margin in Q4'21

Most Canadian and U.S. utilities continued to see a decline in their recurring EBITDA margin in the fourth quarter of 2021. An analysis by S&P Global Market Intelligence found that 21 of the 25 most profitable Canadian and U.S. utilities recorded a negative year-over-year change in recurring EBITDA margin during the period.

PPL Corp. logged the largest decline at 11 percentage points. PPL was the fifth most profitable utility with a recurring EBITDA margin of 44.4% of recurring revenues at the end of the fourth quarter, sliding down from being the third most profitable at the end of the third quarter of 2021.

PPL's deal to acquire Narragansett Electric Co. as part of its asset swap with National Grid PLC has been delayed, with the Massachusetts Supreme Judicial Court ordering a stay and Rhode Island Attorney General Peter Neronha challenging the state's approval of the merger.

The most profitable utility, National Fuel Gas Co., was among the few to register an increase in recurring EBITDA margin. The gas utility reported a 40% year-over-year increase in adjusted profits during the quarter, driven by more oil and gas production and rising commodity prices.

National Fuel raised its full-year earnings guidance 10 cents per share to $5.35 per share at the midpoint.

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