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Emera Reports Q3 2002 Earnings Of $16.2 Million
Nova Scotia Power Likely To Amend 2003 Rate Application

HALIFAX, Nova Scotia, November 1, 2002, (TSX:EMA): Emera Inc.'s consolidated earnings were $16.2 million in the third quarter of 2002, compared to $17.3 million for the same period in 2001. Bangor Hydro, acquired in the fourth quarter of 2001, added $6.6 million to earnings. This was offset by increased business development activity and related expenses at Emera Energy; higher interest costs associated with financing of the Bangor Hydro and Sable Project investments; and higher pension and depreciation costs at Nova Scotia Power (NSPI). NSPI's net earnings were $12.5 million for the quarter, compared to $16.5 million in 2001.

Emera Inc.'s earnings per share for the quarter were unchanged year over year, at $0.17. Year-to-date consolidated earnings were $65.5 million in 2002, compared to $76.5 million in 2001; and earnings per share were $0.67, compared to $0.81, including the $0.02 dilutive effect of the common share issue in Q1, 2001.

"NSPI has had a challenging year. The 3% rate increase recently granted by the Utility and Review Board is welcome, and will help," said David Mann, President and Chief Executive Officer of Emera. "We are now looking ahead to 2003, when we will face substantially higher tax expenses. The rate increase we just received, combined with sales growth, is unlikely to be enough to completely absorb those new costs. We expect to amend our 2003 rate application within the next few weeks."

NSPI's electric revenue increased $7.2 million, or 3.8% in Q3, 2002, to reach $196.9 million, compared to $189.7 million in Q3, 2001. Demand increased across all customer categories. Fuel for generation and power purchased increased $5.9 million, to $71.3 million in Q3, 2002 compared to $65.4 million in the third quarter of 2001. $4.2 million of the increase is volume related, linked to the higher sales. Higher coal prices, and increased use of natural gas in the fuel mix were substantially offset by increased hydro production, the lowest cost generation option; and gains on forward contracts for purchase of heavy fuel oil that are no longer required.

Emera's total revenues increased to $292.4 million in Q3, 2002, up from $207.2 million in the third quarter of 2001, driven by $63.9 million in revenues from Bangor Hydro.

Consolidated operating cash flow increased to $49.8 million in Q3, 2002, compared to $42.1 million in Q3, 2001. Year-to-date, operating cash flow increased $20.5 million, to $174.4 million, from $153.9 million in 2001. The addition of Bangor Hydro is the primary reason for the increased cash flow.

About Emera Inc.

Emera Inc. (EMA-TSX) is a diversified energy and services company, with 550,000 customers and $4.0 billion in assets. The company has two wholly-owned regulated electric utility subsidiaries, Nova Scotia Power Inc. and Bangor Hydro-Electric Company. Nova Scotia Power supplies over 95% of the electric generation, transmission and distribution in Nova Scotia. Bangor Hydro 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. In addition, Emera Energy manages Emera's growing gas infrastructure investment portfolio, including its 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. Emera Energy also incorporates Emera Energy Services, Emera Fuels, and Emera's business development activities.

Conference Call

Emera is holding a teleconference today at 3:00 p.m. Atlantic (2:00 p.m. Toronto/Montreal/New York; 1:00 p.m. Winnipeg; 11:00 a.m. Vancouver) to discuss Q3, 2002 financial results. Analysts and other interested parties wanting to participate in the call should dial 1-888-881-4892 (In Toronto at 416-640-4127) 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 Monday, November 4 by dialling 877-289-8525 (In Toronto 416-640-1917) and entering the pass code #213973. The teleconference will also be Webcast live, and archived for replay, on the internet at www.Q1234.com.

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).