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Emera Reports Third Quarter Earnings of $19.5 Million – November 3, 2006

HALIFAX, Nova Scotia, November 3, 2006, (TSX - EMA):
Emera Inc.’s consolidated net earnings were $19.5 million in Q3 2006 compared to $15.9 million in Q3 2005. Emera’s earnings per share were $0.18 in Q3 2006 compared to $0.14 in Q3 2005.

“Emera continues to post solid financial results in 2006,” said Chris Huskilson, President and Chief Executive Officer of Emera Inc. “We remain focused on two priorities. First, ensuring our regulated electric utilities consistently recover their costs of service and earn appropriate returns. And second, building on this solid foundation with new investments like the Northeast Reliability Interconnect and the Brunswick Pipeline that will grow earnings over time.”

The quarterly earnings improvement reflects higher earnings at the Company’s largest subsidiary, Nova Scotia Power Inc. (NSPI). NSPI’s contribution to consolidated earnings was $12.7 million in Q3 2006, compared with $2.7 million in Q3 2005. The re-establishment of earnings levels in 2006 is due to the combined effect of an electricity price increase earlier this year; and higher proceeds from the resale of natural gas, which reduce overall fuel costs. Sales and production volume decreases associated with the temporary shutdown of a large industrial customer had a minimal effect on electricity margin in the quarter. On October 10th, Nova Scotia Power requested an average 7.5% increase in electricity rates for the coming year, to recover higher projected fuel costs, and previously deferred and approved expenses. Hearings are scheduled to begin January 22, 2007.

Bangor Hydro Electric (BHE), Emera’s electricity transmission and distribution utility in Maine, contributed $5.1 million to consolidated net earnings in Q3 2006 compared to $4.4 million in Q3 2005. Lower operating expenses reflecting the capitalization of costs associated with the Northeast Reliability Interconnect transmission project more than offset the effects of a stronger Canadian dollar.

Emera's Other operations contributed $1.7 million to Q3 2006 consolidated net earnings compared to $8.8 million in Q3 2005. Increased interest expense in Other due primarily to foreign exchange gains in Q3 2005 and lower energy marketing margins were key factors.

Consolidated cash provided by operating activities was $98.8 in Q3 2006, compared to $116.7 million in Q3 2005 reflecting increased net operating working capital requirements.

Teleconference Call

Emera is holding a teleconference today at 4:00 pm Atlantic (3:00 pm Toronto/Montreal/New York; 2:00 pm Winnipeg; noon Vancouver) to discuss the Q3, 2006 financial results. Analysts and other interested parties wanting to participate in the call should dial 1-888-575-8232 (in Toronto 416-406-6419) 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 3201405# (available until midnight, Friday, November 17, 2006). 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).