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Emera Q2 Earnings Down – July 27, 2005
HALIFAX, Nova Scotia, July 27, 2005, (EMA-TSX): Emera Inc.'s consolidated net earnings were $19.3 million in Q2, 2005, down from $29.8 million in Q2, 2004. The decrease reflects a 45% drop in earnings for the Company's largest subsidiary, Nova Scotia Power (NSPI). NSPI contributed $13.7 million to Emera's consolidated net earnings in the second quarter of this year, down from $25.0 million for the same period last year.

The $11.3 million decrease in NSPI's contribution to consolidated net earnings reflects a $27.0 million ($17.9 million after-tax) increase in fuel expense, largely due to reduced gas sales margin and higher coal and oil prices. This was only partially offset by a 5.3% rate increase that came into effect on April 1, 2005.

"We know our 2005 earnings will be hard hit by rising fuel costs, which are well in excess of what is currently provided for in rates," said Chris Huskilson, President and Chief Executive Officer of Emera Inc. "High fuel prices are a worldwide problem, and that is what is driving NSPI to request higher rates for 2006."

Bangor Hydro, Emera's electricity transmission and distribution utility in Maine, contributed $2.4 million to consolidated net earnings in Q2, 2005 compared to $3.5 million for the same period in 2004 due to increased transmission and depreciation costs, and the effect of a stronger Canadian dollar.

Other operations contributed $3.2 million to consolidated net earnings in Q2 2005, compared to $1.3 million in Q2, 2004.

Consolidated cash provided by operating activities was $65.9 million in Q2, 2005, compared to $92.2 million in Q2, 2004, primarily due to NSPI's increased fuel costs.

Recent Corporate Developments

On May 24, 2005 Emera and Brascan Power Inc., in a 50-50 joint venture, completed the acquisition of Bear Swamp, a 600 megawatt ("MW") pumped storage hydro-electric facility in northern Massachusetts. Emera's share of the purchase price was $61.0 million including acquisition costs. The facility sells energy, capacity and ancillary products to the New England Power Pool.

On July 5, 2005, Nova Scotia Power filed an application with the Nova Scotia Utility and Review Board requesting an average 15% increase in electricity rates for 2006. Substantial increases in the price of oil, coal and natural gas were key drivers of the application. NSPI is also proposing to invest an additional $18.7 million towards new measures to improve customer service, strengthen network reliability and initiate new conservation and energy efficiency measures sought by customers. Hearings are scheduled to begin November 14, 2005.

On July 13, 2005, Nancy Tower, FCA was appointed acting Chief Financial Officer of Emera Inc.

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. Nova Scotia Power's Point Tupper and Lingan generating facilities have been ranked #1 and #2 in Canada in operating performance by The Canadian Electricity Association. 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. Emera also owns a 12.9% interest in the Maritimes & Northeast Pipeline; 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.

Teleconference Call

Emera is holding a teleconference today at 2:00 pm Atlantic (1:00 pm Toronto/Montreal/New York; 12:00 pm Winnipeg; 10:00 am Vancouver) to discuss the Q2, 2005 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 (in Toronto 416-695-5800), access code 3157251 (available until midnight Wednesday, August 3, 2005). The teleconference will also be web cast live at www.emera.comand 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).