Capital Power to hike quarterly dividend by 7.9 per cent

EDMONTON – Capital Power Corp. (TSX:CPX) says its quarterly dividend will go up 7.9 per cent to 34 cents per common share, starting with the next payment on Oct. 31.

The increased payout to the utility company’s shareholders was announced Friday along with financial results showing Edmonton-based Capital Power had $20 million of net income for the three months ended June 30.

That was flat compared with $20 million of net income in the third quarter of 2013, although diluted earnings per share fell to 17 cent from 19 cents a year earlier.

Revenue fell to $240 million from $321 million in the second quarter of 2013.

Capital Power said its financial performance during the second quarter was affected by seasonally low power prices in Alberta and lower power generation from its Sundance and Genesee 3 operations, but expects its operating margin to grow.

Capital Power has scheduled a conference call for Monday to discuss the results.