« Back

Emera Reports Third Quarter Earnings Of $11.5 Million
$4.0 Million Earnings Impact from Hurricane Juan

HALIFAX, Nova Scotia, November 7, 2003, (TSX:EMA): Emera Inc.'s consolidated earnings were $11.5 million in the third quarter of 2003, compared to $16.2 million for the same period in 2002. Earnings per share for the quarter were $0.11, compared to $0.17 in 2002.

After providing for restoration and repair costs related to the devastation from Hurricane Juan, the Nova Scotia Power contribution to consolidated earnings was $11.6 million, compared to $12.5 million for the same period last year. The achievement and benefits of higher sales and lower fuel costs were offset by a combination of higher taxes, amortization, and the costs of Hurricane Juan.

Juan, a Category Two hurricane, struck Nova Scotia on September 28, 2003, making landfall in the Halifax area, and moving through central Nova Scotia, the densest population areas in the province. Hurricane Juan caused extensive damage to Nova Scotia Power's transmission and distribution system. At the peak, nearly 300,000, or 70% of customers were without power. By October 3, five days after the hurricane hit, power had been restored to 95% of those affected.

"Hurricane Juan tested Nova Scotia Power like no other event in our history," said David Mann, President and Chief Executive Officer of Emera. "The strength of our company was demonstrated in the skill, knowledge and expertise of our people, and their unswerving commitment to their work and their customers."

The total cost of Hurricane Juan to the utility was $12.6 million. Of the total, $4.0 million represents one-time operating costs related to the restoration and lost electric margin, net of tax, and has been recorded as an expense in Q3, 2003. The balance, $8.6 million, is capital cost.

"While the direct financial impact of Juan is significant, Nova Scotia Power still expects to earn within its allowed range for 2003," said Mr. Mann.

Bangor Hydro's contribution to Q3 consolidated net earnings decreased $3.4 million, primarily due to a one-time, $1.9 million after-tax adjustment to its unbilled revenue, and the affect of the stronger Canadian dollar.

Emera Energy contributed earnings before interest and taxes of $0.7 million in Q3, 2003, compared to a loss of $2.0 million in the third quarter of 2002. This was achieved through a substantial reduction in business development expenditures quarter over quarter, reflecting the streamlining of this function.

Year-to-date, consolidated earnings increased 25% to $81.7 million, compared to $65.5 million in 2002; and earnings per share were $0.76, compared to $0.67 in 2002.

Consolidated cash provided by operations before interest and income taxes was $150.0 million in Q3, 2003, compared to $119.5 million in Q3, 2002 (year to date, $400.2 million in 2003 compared to $307.1 million in 2002.) The quarter over quarter increase was due mainly to higher sales of natural gas, which served to lower fuel expenses; higher revenues, reflecting Nova Scotia Power's 3% price increase implemented late in 2002; and a reduction in coal inventory year over year as stockpiles of local coal were utilized.

Corporate Developments

NSPI has successfully concluded its Generic Rate Design Proceeding. The regulatory decision in this matter was consistent with the position put forth by NSPI.

NSPI has filed a settlement proposal with the UARB in connection with its recent depreciation study. The proposal suggests a $20.0 million increase in NSPI's annual depreciation, to be phased in through equal installments over four years, beginning in 2004. The proposal has received the unanimous consent of intervenors and other participants. The proposal is subject to UARB approval.

On October 31, 2003, Emera sold its 8.4% interest in the Sable Offshore Energy Project offshore platforms and associated sub-sea field gathering lines to Pengrowth Corporation for $65.3 million. The effective date of the transaction is July 1, 2003, and the deal is expected to close on December 15, 2003, subject to approval under The Competition Act.

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 includes Emera's 12.5% interest in the Maritimes & Northeast Pipeline, which delivers Sable natural gas to markets in Maritime Canada and the northeastern United States, 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, 2003 financial results. Analysts and other interested parties wanting to participate in the call should dial 1-888-575-8232 (In Toronto at 416-406-6419) 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 Wednesday, November 12 by dialling 1-800-408-3053 and entering the pass code #1490735. The teleconference will also be Webcast live, and archived for replay, on the internet at www.emera.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).