Q: What probability would you put on another dividend cut for AQN?
Thanks as always.
Thanks as always.
5i Research Answer:
AQN currently has net debt of $8.4B and net debt/EBITDA of 8.9x, which is high, but common for the sector. The trailing twelve-month cash flow of $642M, covers the trailing-twelve-month dividend of around $352M fairly easily. AQN is in the process of selling assets, and this likely means no change in the dividend in the short term, if at all. We need to watch debt maturities and if any more debt is added, but right now we would give low odds, perhaps 10%.