Emera - Emera Reports Second Quarter Earnings of $15.5 Million

Emera Reports Second Quarter Earnings of $15.5 Million
Company Expecting Strong 2003

HALIFAX, Nova Scotia, July 30, 2003, (TSX:EMA): Emera Inc.'s consolidated net earnings were $15.5 million in Q2 2003, compared to $15.7 million in Q2 2002. Net earnings at the company's largest subsidiary, Nova Scotia Power Inc. (NSPI) were $3.3 million lower in the quarter, primarily due to a one-time $6.5 million after-tax adjustment to its unbilled revenue accrual. This was substantially offset by lower interest expense, and a $1.6 million increase in Bangor Hydro's contribution to Q2 consolidated net earnings.

Quarterly earnings per share were $0.14 compared to $0.16 in 2002, reflecting the $0.02 dilutive impact of a common equity issue late in 2002.

"2003 will be a strong year financially for Emera," said David Mann, President and Chief Executive Officer. "We continue to see the benefit of significant natural gas sales at favorable prices, which reduce NSPI's fuel costs. Bangor Hydro is delivering solid performance, and we're keeping tight control on other expenses. "

NSPI's Q2 revenues were $4.1 million, or 2%, lower in 2003 than in 2002. The adjustment to unbilled revenue referred to above more than offset modest increases in sales volumes, and the impact of the 3% price increase. Fuel expense also decreased, by $6.6 million, or 9%, as a result of the gas sales program.

NSPI does not expect to file for an electricity rate increase for 2004. The Company had previously indicated that higher income taxes would necessitate a rate filing this year, but cited continued favorable fuel cost forecasts, and the agreement by the Company's regulator to extend the period for the write-off of the Glace Bay generating station as reasons to defer a filing.

Year-to-date, Emera's consolidated net earnings increased 42% to $70.2 million in 2003, compared to $49.3 million in 2002. Nova Scotia Power drove the improvement, with a $15.3 million increase in net earnings year over year reflecting colder temperatures, a 3% price increase implemented late in 2002, and lower fuel costs. Year to date, Bangor Hydro has contributed $11.2 million to Emera's consolidated net earnings, an increase of $3.8 million over 2002.

Consolidated cash provided by operations before interest and income taxes was $122.3 million in Q2, 2003, compared to $75.6 million in Q2, 2002 (year to date, $250.2 million in 2003 compared to $187.6 million in 2002). The increase was due to lower fuel expenses; higher revenues, reflecting Nova Scotia Power's 3% price increase, and colder weather; and a $48 million reduction in coal inventory year over year as stockpiles of local coal were drawn down.

Corporate Developments

Nova Scotia Power is awaiting a regulatory decision on its recent Generic Rate Design Proceeding, which addressed a limited set of issues pertaining to aspects of the Company's rate design. Any changes should not impact recovery of NSPI's revenue requirement.

On July 8, 2003, Chris Huskilson was appointed to the newly created position of Chief Operating Officer (COO) of Emera Inc., overseeing the operations of all of Emera's subsidiaries.

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 107,000 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 2:30 pm Atlantic (1:30 pm Toronto/Montreal/New York; 12:30 pm Winnipeg; 10:30 am Vancouver) to discuss the Q2 2003 financial results. Analysts and other interested parties wanting to participate in the call should dial 1-800-814-4859 (in Toronto 416-640-4127) at least 10 minutes prior to the start of the call. No pass code is required. The teleconference will be recorded. If you are unable to join the teleconference live, you can dial for playback at 416-640-1917, or toll-free at 877-289-8525, passcode 21008229 (available until midnight Monday, August 4, 2003). The teleconference will also be webcast live by Q1234.com and CNW and will be available for playback in the Q1234 and CNW archives.

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).