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Emera Reports Q2 Earnings Of $15.6 Million
Bangor Hydro and Sable Acquisitions Expected To Be Onstream in Third Quarter

HALIFAX, Nova Scotia, August 9, 2001, (TSE:EMA): Emera Inc.'s consolidated earnings were $15.6 million in the second quarter of 2001, compared to $19.9 million for the same period in 2000. Total revenues for the quarter increased 4.9%, to $217.6 million. Higher world prices for fossil fuels used in electricity generation, and increased customer service and business development activities were the primary reasons for the earnings decrease.

"We're managing through a period of high fuel costs, but as we expected the earnings impact in the second quarter was less than in Q1", said David Mann, President and Chief Executive Officer of Emera Inc. Earnings per share were $0.15 for the second quarter (including the $0.02 dilutive impact of the common equity issue in the first quarter), compared to $0.23 for the same period in 2000.

"Our Nova Scotia Power subsidiary is on track to meet its earnings budget for the year, despite high fuel prices," said Ron Smith, Chief Financial Officer of Emera Inc. "In the third quarter, we expect to see both Bangor Hydro and our Sable offshore investment start to contribute to earnings."

Electric revenues increased 3.3%, to $196.6 million in the second quarter of 2001, compared to $190.4 million for the same period in 2000. Residential sales volumes stayed strong, increasing 6.2%, reflecting a return to normal temperatures after several warmer years. A $2.9 million increase in export sales offset the impact of reduced activity at a small number of industrial customers.

Fuel for generation and power purchased increased 14% to $69.9 million for the second quarter of 2001 compared to $61.3 million in 2000. $2.3 million of the increase results from higher sales volumes; the majority is due to continued higher prices for coal, petroleum coke and oil. These cost increases were partially offset by increased hydro production, made possible by a late spring thaw.

"Nova Scotia Power continues to invest in customer initiatives that are quite innovative for an electric utility," said Mr. Mann. "We're implementing a customer research and segmentation program, developing pricing options, and putting together a Green Power offering. In addition, Emera is stepping up its business development activity, particularly with respect to gas infrastructure opportunities, because we see great potential for growth arising from the development of Nova Scotia's offshore natural gas."

These activities, along with growth in Emera Fuels, which acquired four new fuel companies at the end of 2000, and increased maintenance in generation contributed to the increase in operating, maintenance and general expenses, which were $48.3 million for the second quarter of 2001, compared to $43.5 million in 2000.

Corporate Developments

In June, 2001, Emera acquired an 8.4% interest in the Sable Offshore Energy Project (SOEP) offshore platforms and associated sub-sea field gathering lines for $50.0 million. "Our SOEP acquisition is an important step in implementing our gas infrastructure strategy", said Mr. Mann. "It complements our Maritimes & Northeast Pipeline investment, and puts us in partnership with the industry leaders driving the development of Nova Scotia's offshore natural gas reserves. We believe this will lead us to additional opportunities going forward."

Emera is awaiting approval from the United States Securities and Exchange Commission for its acquisition of Bangor Hydro-Electric Company. This final regulatory approval is expected soon and, once it is received, Emera will have five days in which to close the deal.

About Emera Inc.

Emera Inc. (TSE-EMA) is a diversified energy and services company, with 440,000 customers and $3.2 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; 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; and an 8.4% interest in the Sable Offshore Energy Project offshore platforms and sub-sea field gathering lines. Emera is in the process of gaining final regulatory approval 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-Hydro shareholders have approved the transaction.

Conference Call:

Emera is holding a teleconference today at 5:00 pm Atlantic (4:00 pm Eastern, 1 pm Pacific) to discuss the second quarter 2001 financial results. Analysts and other interested parties wanting to participate in the call should dial 1-888-793-1716 (Toronto area - 416-620-2416) 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, August 13, 2001 by dialing 1-800-558-5253 (Toronto area - 416-626-4100) and entering the pass code 19356332. The teleconference will also be Webcast live on the internet at www.Q1234.com, and archived and available for replay on that site.

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).