Shares of Canada’s Northland Power (TSX:NPI) are down 23% after the energy company reduced its dividend by 40%.
Going forward, Northland Power will pay an annual dividend to shareholders of $0.72 per share, down 40% from $1.20 a share. The company previously boasted a dividend yield of 6.58%.
The dividend cut comes after Northland Power reported a third-quarter loss that more than doubled from a year earlier.
The company, which is based in Ontario and specializes in wind, solar, and natural gas power, announced a Q3 net loss of $412.7 million or $1.58 per share for the quarter ended Sept. 30.
That compares with a loss of $178.2 million, or $0.70 per share, a year ago. Revenue from energy sales totalled $554.5 million, up from $490.5 million a year ago.
Northland also reported that its free cash flow per share for the third quarter totaled $0.17, up from $0.08 a year ago.
The decline in NPI stock has wiped out all of its previous gains for the year, leaving the share price flat at $18.24.
