Canadian Utilities Reports Higher Second Quarter 2013 Earnings
26 Julio 2013 - 6:55AM
Marketwired
Canadian Utilities Limited (TSX:CU) (TSX:CU.X)
Canadian Utilities today reported higher earnings for the second
quarter of 2013 led by continued investment in utility
infrastructure to support Alberta growth.
Second quarter Adjusted Earnings were $131 million compared to
$95 million for the same period in 2012 driven by strong earnings
contributions from the utilities and power businesses.
Earnings attributable to equity owners were $160 million
compared to $104 million in the same period in 2012. Adjusted
Earnings will differ from earnings attributable to equity owners
because of the timing of recoveries from or refunds to customers of
amounts that are deferred by the Utilities for regulatory purposes;
however, over time there is no difference.
Adjusted Earnings were $311 million for the six months ended
June 30, 2013 compared to $269 million in 2012. Earnings
attributable to equity owners were $343 million for the six months
ended June 30, 2013 compared to $294 million in 2012.
The Hanna Region Transmission Development Project, which
provides major transmission reinforcement in southeast Alberta, was
completed in July. The project was delivered on schedule and under
budget. Investment in Alberta's utility infrastructure by ATCO
Electric, ATCO Gas and ATCO Pipelines in the second quarter was
$463 million, bringing the total for the first six months of 2013
to $974 million. This capital expenditure exceeded the total
investment for the first half of 2012 by $37 million.
RECENT DEVELOPMENTS
-- In May 2013, Canadian Utilities' Board of Directors approved a two-for-
one share split of outstanding Class A non-voting and Class B common
shares. The split occurred on June 14, 2013 by way of a share dividend.
-- Canadian Utilities declared a third quarter dividend for 2013 of 24.25
cents per Class A non-voting and Class B common share, which amount
reflected the two-for-one share split. Canadian Utilities' annual
dividend per share has increased for 41 consecutive years.
-- On May 15, 2013, Canadian Utilities issued $225 million Cumulative
Redeemable Second Preferred Shares Series DD at a price of $25 per
share.
FINANCIAL SUMMARY AND RECONCILIATION OF ADJUSTED EARNINGS
A financial summary and reconciliation of Adjusted Earnings to
earnings attributable to equity owners is provided below:
For the Three Months For the Six Months
Ended June 30(4) Ended June 30(4)
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($Millions except share data) 2013 2012 2013 2012
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Adjusted Earnings (1) 131 95 311 269
Adjustments for Rate Regulated
Activities (2) 17 - 12 7
Dividends on Equity Preferred
Shares 12 9 20 18
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Earnings Attributable to Equity
Owners 160 104 343 294
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Revenues 845 685 1,721 1,496
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Funds Generated By Operations
(3) 431 292 842 703
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Weighted Average Shares
Outstanding (millions of
shares) 257.9 255.0 257.5 255.1
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(1) Adjusted Earnings are earnings attributable to equity owners after
adjusting for the timing of revenues and expenses associated with rate
regulated activities and dividends on equity preferred shares of
Canadian Utilities. Adjusted Earnings also exclude one-time gains and
losses and items that are not in the normal course of business or day-
to-day operations. Adjusted Earnings present earnings on the same basis
as was used prior to adopting International Financial Reporting
Standards (IFRS) - that basis being the U.S. accounting principles for
rate regulated entities - and they are a key measure used to assess
segment performance, to reflect the economics of rate regulation and to
facilitate comparability of Canadian Utilities' earnings with other
Canadian rate regulated companies.
(2) Refer to Note 5 to the consolidated financial statements for
descriptions of the adjustments for rate regulated activities and the
timing of their recovery from or refund to customers.
(3) This measure is cash flow from operations before changes in non-cash
working capital. It does not have standardized meaning under IFRS and
may not be comparable to similar measures used by other companies.
(4) 2012 financial information has been restated as a result of adopting new
and amended IFRS accounting standards that became effective in 2013.
Revenues in the second quarter and the first six months of 2013
increased primarily due to increased rate base in the Utilities,
higher power pool prices in ATCO Power and higher flow through
natural gas sales in ATCO Energy Solutions' natural gas liquids
extraction operations.
Funds Generated by Operations increased in the second quarter
and the first six months of 2013 primarily for the same reasons
earnings increased.
Canadian Utilities' consolidated financial statements and
management's discussion and analysis for the three and six months
ended June 30, 2013 will be available on the Canadian Utilities
website (www.canadianutilities.com), via SEDAR (www.sedar.com) or
can be requested from the Corporation.
Canadian Utilities Limited, an ATCO company, with more than
7,100 employees and assets of approximately $14 billion, delivers
service excellence and innovative business solutions worldwide with
leading companies engaged in utilities (pipelines, natural gas and
electricity transmission and distribution), energy (power
generation, natural gas gathering, processing, storage and liquids
extraction) and technologies (business systems solutions). More
information can be found at www.canadianutilities.com.
Forward-Looking Information:
Certain statements contained in this news release may constitute
forward-looking information. Forward-looking information is often,
but not always, identified by the use of words such as
"anticipate", "plan", "estimate", "expect", "may", "will",
"intend", "should", and similar expressions. Forward-looking
information involves known and unknown risks, uncertainties and
other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
information. The Corporation believes that the expectations
reflected in the forward-looking information are reasonable, but no
assurance can be given that these expectations will prove to be
correct and such forward-looking information should not be unduly
relied upon.
Any forward-looking information contained in this news release
represents the Corporation's expectations as of the date hereof,
and is subject to change after such date. The Corporation disclaims
any intention or obligation to update or revise any forward-looking
information whether as a result of new information, future events
or otherwise, except as required by applicable securities
legislation.
Contacts: Canadian Utilities Limited B.R. (Brian) Bale Senior
Vice President & Chief Financial Officer (403) 292-7502
www.canadianutilities.com
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