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Emera NewsEmera Reports Q1 Earnings of $43.6 Million
Colder Weather Drives Revenue Increases

HALIFAX, Nova Scotia, May 3, 2001, (TSE:EMA): Emera Inc.'s consolidated earnings were $43.6 million in the first quarter of 2001, compared to $50.0 million 2000. Total revenues for the quarter increased 6.2%, to $261.1 million. Earnings were affected by higher world prices for fossil fuels used in electricity generation during the period.

"Our results are in line with our expectations," said David Mann, President and Chief Executive Officer. "We're living up to our commitment to keep electricity prices stable for customers in 2001, and knew fuel costs would be particularly challenging during the first quarter. We expect less of an impact over the remainder of the year, because our fuel mix changes in the warmer months. We're satisfied with our revenue growth, and very pleased with the strong contribution to earnings from our investment in the Maritimes & Northeast Pipeline."

Earnings per share were $0.49 (including the $0.01 dilutive impact of the common equity issue in the quarter), compared to $0.57 for the first quarter of 2000.

Fuel for generation and power purchased increased 18.3% to $84.1 million for the first quarter of 2001 compared to $71.1 million in 2000. $4.0 million of the increase is a result of increased production to meet higher sales volumes. Lower hydro production, a result of colder conditions, necessitated greater reliance on oil-fired generation and purchased power, adding $5.3 million to fuel costs; and higher oil and coal prices contributed $9.1 million. The impact of these fuel cost increases was mitigated by $7.0 million of net proceeds on sales of natural gas.

Electric revenues increased 3.6%, to $230.7 million for the first three months of 2001, compared to $223.0 million in 2000. Residential revenues were particularly strong, increasing 6.5%, reflecting a return to normal winter temperatures after several warmer years. Commercial and industrial revenue increases are consistent with growth in the provincial economy.

Fuel oil revenue was $27.8 million for the period, compared to $20.7 million in the prior year. The 34.3% increase reflects the growth in Emera Fuels' business over the past year. There was an accompanying increase in the cost of fuel oil sold, which was $23.7 million for the quarter, compared to $18.2 million for the same period in 2000. The gross margin percentage improved from 12.1% to 14.7%.

Operating, maintenance and general expenses increased to $43.9 million, compared to $39.9 million in 2000. $2.0 million of the increase is attributable to the impact of a one-time gain on the sale of telecommunication assets that was netted against the 2000 comparative OM&G expense.

Toward the end of 2000, Emera's regulated electric utility subsidiary, Nova Scotia Power, permanently shut down its Glace Bay generating station, and began to write off the asset. The plant had an undepreciated capital cost of approximately $25 million at December 31, 2000, which is to be written off through 2004. Nova Scotia Power's regulator has allowed the company flexibility in determining the annual write-off in order to achieve rate stability. No amount has been written off in the first quarter of 2001. Amortization expense in the first quarter of 2000 was $3.3 million, representing an accrual for site restoration costs for the Glace Bay facility. Such costs were fully reserved by the 2000 year-end.

Corporate Developments

On February 6, 2001, Emera Inc., in cooperation with Pengrowth Energy Trust of Calgary offered to purchase 8.4% of the Sable Offshore Energy Project (SOEP). The deal is structured to allow each of the participants to acquire elements of the Sable project of most interest to them. Emera will purchase an interest in the SOEP infrastructure assets, including a gas processing plant at Goldboro, Nova Scotia; a natural gas liquids fractionation plant at Point Tupper, Nova Scotia; a natural gas liquids line connecting the Goldboro and Point Tupper operations; and offshore production platforms and sub-sea gathering pipelines. Investing in those physical assets is consistent with the company's skill set, and risk profile. Pengrowth will acquire an interest in Sable's natural gas reserves, and contract to utilize Emera's infrastructure assets to produce and process the gas and natural gas liquids.

"The acquisition is consistent with Emera's growth strategy", said Mr. Mann. " We are determined to play a part in developing the infrastructure to support a world-class gas industry in eastern Canada. The SOEP acquisition complements our Maritimes & Northeast investment, and advances our evolution from a provincial electric utility towards a diversified energy company operating throughout the northeast energy market." The offer is subject to certain rights of first refusal held by existing SOEP participants.

On March 23, 2001, Emera completed an equity offering, issuing 10,350,000 new common shares for net proceeds of $161.0 million. The funds will be used to refinance existing debt and bank indebtedness and to finance new capital expenditures and investments.

About Emera Inc.

Emera Inc. (TSE-EMA) is a diversified energy and services company, with 440,000 customers and $2.9 billion in assets. Its wholly-owned operating subsidiary, Nova Scotia Power Inc., is a regulated electric utility that supplies over 95% of the electric generation, transmission and distribution in Nova Scotia. Emera also delivers bunker oil, diesel fuel and light fuel oil through its unregulated subsidiaries, and has a 12.5 per cent interest in the Maritimes & Northeast Pipeline, which delivers Sable Island natural gas to markets in Maritime Canada and the northeastern United States. Emera is in the process of gaining final regulatory approvals for the acquisition of all of the common shares of Bangor Hydro-Electric Company (NYSE:BGR), a regulated electric transmission and distribution business serving 110,000 customers in Maine. Bangor shareholders have approved the transaction. In February, 2001, Emera announced its offer to purchase an 8.4% interest in the Sable Offshore Energy Project (SOEP) infrastructure assets of Nova Scotia Resources Limited for $90.0 million. The offer is subject to certain rights of first refusal.

Conference Call:

Emera is holding a teleconference today at 2:30 pm Atlantic (1:30 pm Eastern, 10:30 am Pacific) to discuss the first quarter 2001 financial results. Analysts and other interested parties wanting to participate in the call should dial 1-877-871-9527 (Toronto area - 416-620-2410) at least 10 minutes prior to the start of the call. No pass code is required. A replay of the teleconference will be available one hour after the call ends, until midnight on Monday, May 7, 2001 by dialling 1-416-626-4100 and entering the pass code 18664380. The teleconference will also be Webcast live on the internet at www.Q1234.com. The internet broadcast will be archived and available for replay.

Forward Looking Information:

This news release contains forward looking information. Actual future results may differ materially. Additional financial and operational information is filed electronically with various securities commissions in Canada through the System for Electronic Document Analysis and Retrieval (SEDAR).