Algonquin Power to move headquarters to Chicago

Algonquin Power & Utilities Corp. AQN-T is shifting its headquarters south of the border to Chicago.

The Oakville, Ont.-based company says it will maintain a significant presence in Canada but move its head office to Illinois, where senior executives will be based.

The company framed the move as a way to better align its corporate structure with its footprint. More than 80 per cent of its operations are in the U.S. and less than 5 per cent are in Canada.

Algonquin says moving will also help it reduce cross-border tax inefficiencies, expand its access to capital and create a possible route to get included in U.S. equity indices and funds.

The announcement came as Algonquin reported a second-quarter profit of US$4.9-million, which compared with US$14.8-million in net earnings attributable to common shareholders a year ago.

The company, which keeps its books in U.S. dollars, said its basic and diluted net earnings amounted to 1 U.S. cent per common share, compared with 2 U.S. cents a year earlier.

Revenue for the quarter ended June 30 totalled US$543.9-million, up from US$527.8 million a year earlier.

On an adjusted basis, Algonquin earned 4 U.S. cents per share in its latest quarter, unchanged from its previous second quarter.