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OAKVILLE, Ontario - Algonquin Power & Utilities Corp. (TSX/NYSE: AQN), a diversified utility company, has announced the appointment of its CEO, Rod West, to its Board of Directors. Additionally, the company plans to add Gavin Molinelli, a Senior Partner at investment firm Starboard Value LP, to the Board, pending approval from the Federal Energy Regulatory Commission.
The appointments will expand the Board to 11 directors, with 9 being independent. The company’s Chairman, Randy Laney, expressed confidence in the new additions, stating that they will benefit all shareholders and support Algonquin’s transition to a pure-play regulated utility. The company’s stock has shown resilience this year, with a YTD return of 8.54%.
Rod West, who has a robust background in utility operations and management, is expected to contribute significantly to the company’s strategic execution and operational efficiency. Gavin Molinelli, with his extensive experience in public company boards and investment analysis, is anticipated to aid in enhancing shareholder value through improved operational and financial performance.
The company has also extended its cooperation agreement with Starboard, which owns approximately 8.66% of Algonquin’s outstanding common shares. The agreement includes Starboard’s support for the company’s nominees at the 2025 annual meeting of shareholders and customary standstill, voting, and other provisions.
This strategic alignment between Algonquin Power & Utilities Corp. and Starboard is aimed at unlocking the company’s potential and driving earnings growth. The news of these appointments and the extended cooperation agreement is based on a press release statement from Algonquin Power & Utilities Corp.
In other recent news, Algonquin Power & Utilities Corp reported its Q4 2024 earnings, revealing a shortfall in both earnings per share (EPS) and revenue compared to forecasts. The company posted an EPS of $0.06, missing the forecasted $0.09, while revenue came in at $584.8 million, below the expected $643.7 million. Additionally, Algonquin Power’s quarterly adjusted net earnings declined to $45.2 million from $81.3 million the previous year. The company is transitioning to a pure-play regulated utility model, with new CEO Rod West expected to outline future strategies in the coming months. Despite these changes, Algonquin Power faces challenges, including regulatory hurdles in key markets like Missouri and Arizona. Analysts from various firms have noted the company’s ongoing restructuring and operational efficiency focus. The company aims to enhance earnings above peer averages by improving its cost structure and operational performance.
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