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Home arrow Oil and Gas arrow Emera Earns $43.6 Million in Q1 2006
Emera Earns $43.6 Million in Q1 2006 PDF Print E-mail
Tuesday, 09 May 2006
Emera Inc.'s consolidated net earnings were $43.6 million in Q1 2006, compared to $48.3 million for the same period in 2005. Net cash provided by operating activities improved substantially, to $69.1 million in Q1 2006, compared to $18.0 million in the first quarter of 2005. Earnings per share were $0.40, compared to $0.44 in 2005.


"We're gaining a more solid financial footing in 2006," said Chris Huskilson, President and CEO of Emera. "Our goal with our regulated businesses is to provide returns that are reasonable and dependable."

Nova Scotia Power's contribution to consolidated earnings was $3.4 million lower in Q1 2006, at $37.4 million, compared to $40.8 million in Q1 2005. However, in Q1 2005, a portion of provincial grants and taxes and income taxes, which would have otherwise been expensed, were deferred, pending regulatory approval of new rates. Without that deferral, 2005 comparative earnings would have been $15.3 million lower. Electricity margin (revenues less fuel for generation and purchased power) was $26.9 million higher in Q1 2006 compared to Q1 2005, substantially due to three factors:

    -  higher allowed rates, effective April 2005 and mid-March 2006;
    -  sales and production volume decreases, reflecting the temporary shutdown of a large industrial customer and warmer weather. This  resulted in a net favourable effect on electricity margin quarter over quarter because the cost of peak electricity production is greater than the average industrial selling price;
    -  increased proceeds from the resale of natural gas, reflecting the renegotiation of NSPI's natural gas supply contract late in 2005.

    Bangor Hydro Electric (BHE), Emera's electricity transmission and distribution utility in Maine, contributed $3.7 million to consolidated net earnings in Q1 2006, compared to $4.1 million in Q1 2005, reflecting a stronger Canadian dollar.

Emera's Other operations contributed $2.5 million to net earnings in Q1 2006, compared to $3.4 million in Q1 2005. The addition of the Bear Swamp hydro-electric facility in Q2 2005 added $1.8 million in earnings before interest and taxes quarter over quarter. This was offset by lower energy marketing margins, reflecting reduced activity due to warmer weather quarter
over quarter.
   
The increase in consolidated cash provided by operating activities reflects improved earnings, and working capital changes.



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