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Emera Reports Stronger Third Quarter

HALIFAX, Nova Scotia, November 2, 2001, (TSE:EMA): Emera Inc.'s consolidated earnings were $17.3 million in the third quarter of 2001, compared to $4.9 million for the same period in 2000. The higher earnings were driven by a $9.3 million increase in electric margin, a result of increased sales and falling natural gas prices; and an increase in earnings from the Maritimes & Northeast Pipeline, which recorded $3.6 million of one-time charges in the third quarter of last year.

Earnings per share were $0.17 for the third quarter (including the $0.03 dilutive impact of the common equity issue in the first quarter), compared to $0.06 for the same period in 2000.

"We had a strong third quarter, recovering much of the earnings ground lost in the first half of the year," said David Mann, President and Chief Executive Officer of Emera Inc. "Revenues were up, and we were able to take advantage of falling gas prices to mitigate higher coal costs. Maritimes & Northeast is a solid earnings contributor, and our recent Sable offshore investment is beginning to provide returns."

Year-to-date earnings increased slightly, to $76.5 million compared to $74.8 million for the same period in 2000; year-to-date earnings per share were $0.81, compared to $0.86 in 2000, reflecting a $0.07 dilutive effect from the common equity issue over the nine-month period.

Electric revenues increased 4.3%, to $189.7 million in the third quarter of 2001, compared to $181.9 million for the same period in 2000. Residential, commercial and industrial sales revenues all grew, with the industrial sales increase of 4% driven by an approved rate increase applied retroactively to the beginning of the year. Export sales volumes increased 44%, providing an additional $2.6 million in revenues year over year.

Higher import coal prices substantially offset the benefit of lower natural gas prices, leading to fuel for generation and power purchased costs of $65.4 million for the third quarter of 2001 compared to $66.9 million in 2000. "Year to date, higher coal and oil prices have cost us over $20 million," noted Mr. Mann. "Next year, we will be importing substantially all of our coal, and clearly, we're watching the world coal market very carefully." World coal prices are at historic highs.

Results from Emera's fuel oil business improved, as the company shifted its sales mix toward higher-margin light fuel oil. Gross margin increased to 14% from 9% in 2000, a $1.6 million increase.

Operating, maintenance and general expenditures were $46.8 million for the three months ended September 30, 2001, lower than the second quarter but higher year over year. "We planned for higher OM&G as we enhance customer service and reliability, and as we acquire new businesses and spend money in pursuit of others," said Mr. Mann. "But we understand it is critical to manage these costs, and continually look for efficiencies and synergies to keep expenses under control."

Corporate Developments

On October 10, 2001, Emera Inc. completed the transaction for the purchase of all of the common shares of Bangor Hydro Electric Company for $26.806 U.S. per share in cash, representing a total transaction value of approximately $300 million. The purchase increases Emera's customer base by 25% and broadens the company's presence in the northeast energy market.

"We're very pleased to have this acquisition completed," said Mr. Mann. "Bangor Hydro builds on the U.S. presence we established with the Maritimes & Northeast Pipeline, and will be an important element of Emera's northeast energy business going forward."

About Emera Inc.

Emera Inc. (EMA-TSE) is a diversified energy and services company, with 550,000 customers and $3.5 billion in assets. The company has two wholly-owned operating subsidiaries, Nova Scotia Power Inc. and Bangor Hydro-Electric Company. Nova Scotia Power, a regulated utility, supplies over 95% of the electric generation, transmission and distribution in Nova Scotia. Bangor Hydro, also regulated, provides electricity transmission and distribution service to 110,000 customers in eastern Maine. It is a member of the New England Power Pool, and is interconnected with the other New England utilities to the south and with New Brunswick Power to the north. Emera also delivers bunker oil, diesel fuel and light fuel oil through its unregulated subsidiaries; has a 12.5% interest in the Maritimes & Northeast Pipeline, which delivers Sable 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.

Conference Call:

Emera is holding a teleconference today at 2:00 pm Atlantic (1:00 pm Eastern, 10 am Pacific) to discuss the third quarter 2001 financial results. Analysts and other interested parties wanting to participate in the call should dial 1-888-391-0232 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, November 5, 2001 by dialing 1-800-558-5253, Reservation # 19843277. 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).