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Emera Reports Third Quarter Earnings of $22.1 Million

HALIFAX, Nova Scotia, November 5, 2004, (TSX:EMA): Emera Inc.’s consolidated net earnings for the third quarter of 2004 were $22.1 million, or 20 cents per share, compared to $11.5 million, or 11 cents per share for the same period in 2003. The earnings improvement is primarily due to two non-recurring charges recorded in 2003, specifically a $4.0 million after tax charge for restoration and repair costs of Hurricane Juan; and a $1.9 million after tax charge to reduce unbilled revenue at Bangor Hydro. In addition, continued focus on controlling operating, maintenance and general expenditures, and a $2.1 million after tax reduction in interest expense contributed to the quarter over quarter change.

For the nine months to September 30, 2004, Emera’s net earnings were $98.4 million, compared to $81.7 million for the same period in 2003, primarily for the reasons noted above, plus the $6.5 million after-tax reduction in unbilled revenue that NSPI recorded in the second quarter of 2003.

“We expected strong earnings performance through the first three quarters,“ said Chris Huskilson, President and Chief Executive Officer for Emera Inc. “Fuel costs will be significantly higher in the fourth quarter of this year compared to last, so we anticipate earnings for the full year will approximate 2003 levels. “

NSPI’s net earnings were $18.5 million in the third quarter of 2004, compared to $11.6 million for the same period in 2003. This was primarily due to operating expenses being $11.3 million lower quarter over quarter ($7.0 million after-tax) reflecting cost reductions in 2004 and the higher operating costs due to Hurricane Juan in 2003.
BHE’s contribution to consolidated net earnings was $4.8 million in the third quarter of 2004, compared to $3.2 million for the same period in 2003, primarily due to the reduction in unbilled revenue in 2003 noted above. Year to date, BHE’s contribution to consolidated net earnings was $14.1 million, compared to $14.4 million in 2003, primarily due to the negative impact of the stronger Canadian dollar in 2004.

The contribution of other operations to consolidated net earnings increased $2.1 million quarter over quarter, and $5.1 million year over year, primarily due to higher energy marketing margins.

Consolidated net cash provided by operating activities was $93.8 million in the third quarter of 2004, compared to $115.0 million for the same period in 2003, reflecting lower cash received from customers due to timing of billings and higher income and capital taxes paid due to higher tax installments required of NSPI.

Consolidated net cash provided by operating activities was $241.7 million for the nine months to September 30, 2004 compared to $148.3 million for the same period in 2003. Cash flow for the first nine months of 2003 was reduced by a total of $133.0 million deposited with the Canada Revenue Agency relating to pre-2003 income taxes. The year over year change is primarily due to higher income and capital tax installments.

Corporate Developments

Effective November 2004, Chris Huskilson was appointed President and Chief Executive Officer for Emera Inc., succeeding David Mann on his retirement.

About Emera Inc.

Emera Inc. (EMA-TSX) is an energy and services company with 570,000 customers and $4.0 billion in assets. The core business of Emera is electricity and 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 owns a 12.9% interest in the Maritimes & Northeast Pipeline, which delivers Sable natural gas to markets in Maritime Canada and the northeastern United States; Emera Energy Services which manages energy assets on behalf of third parties and provides related services; and Emera Fuels, which distributes home heating oil and related products to customers in the Maritime provinces. Visit Emera on the web at www.emera.com.

Teleconference Call

Emera is holding a teleconference today at 3:00 pm Atlantic (2:00 pm Toronto/Montreal/New York; 1:00 pm Winnipeg; 11:00 am Vancouver) to discuss the Q3 2004 financial results. Analysts and other interested parties wanting to participate in the call should dial 1-800-387-6216 (in Toronto 416-405-9328) 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 toll-free at 1-800-408-3053 access code 3099335 (available until midnight Friday, November 12, 2004). The teleconference will also be web cast live at www.emera.com and available for playback for one year.

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).