« Back
Emera’s Earnings Increase to $34.1 million in Q2
HALIFAX, Nova Scotia, July 27, 2007, (EMA-TSX): Emera Inc.’s consolidated net earnings increased to $34.1 million in Q2 2007, compared to $29.2 million for the same period in 2006. Earnings per share were $0.30 in Q2, 2007 compared to $0.26 in the prior year.
“Emera continued to make progress in the second quarter” said Chris Huskilson, President and Chief Executive Officer of Emera Inc. “NSPI is on track to earn within its allowed range, the National Energy Board has approved the Brunswick Pipeline, construction of our international transmission line in Maine is nearing completion and our Bear Swamp facility has made a tangible contribution to earnings. These positive developments prompted our board to increase Emera’s annual dividend to $0.91 in the quarter.”
Nova Scotia Power Inc., (NSPI) Emera’s largest subsidiary, earned $23.9 million in Q2, 2007 compared to $24.3 million in Q2, 2006. Earlier this month, the Nova Scotia Utility and Review Board approved NSPI’s proposal to maintain current rates through 2008. “We are pleased to be able to sustain rates at current levels,” said Mr. Huskilson, “We know that price stability is important for our customers. The utility has been able to take advantage of a higher Canadian dollar and opportunities to realize favorable 2008 fuel prices.” The utility continues to work productively with stakeholders on implementing a fuel adjustment mechanism. A regulatory hearing on this subject, originally scheduled for June, is now expected to be held in the fall.
Bangor Hydro-Electric (BHE) earned $4.8 million in Q2, 2007 compared to $2.7 million in Q2, 2006 primarily due to the capitalization of overhead expenses and allowance for funds used during construction to the Northeast Reliability Interconnect (NRI) transmission project. In addition, BHE began recovering costs associated with the NRI investment in rates in June.
Brunswick Pipeline received its Certificate of Public Convenience and Necessity – an important milestone in the regulatory process. An application for leave to appeal and judicial review has been filed by an intervener. Brunswick Pipeline is opposing this application. The project continues to progress on track and is expected to be in service as planned by the end of 2008.
Emera’s other operations contributed $5.4 million to earnings in the second quarter of 2007 compared to $2.2 million in Q2, 2006. The Bear Swamp merchant generating facility’s earnings were up significantly year over year because of higher energy and capacity sales. The Maritimes & Northeast Pipeline and Emera Energy Services also reported earnings increases.
Consolidated cash provided by operating activities was $85.8 million in Q2 2007, compared to $71.2 million in Q2 2006.
Teleconference Call
Emera is hosting a teleconference at 3:00 p.m. Atlantic time today (2:00 p.m. Toronto/Montreal/New York; 1:00 p.m. Winnipeg; 11:00 a.m. Vancouver) to discuss the Q2 2007 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 3227745# (available until midnight, Friday, August 10, 2007). The teleconference will also be webcast 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).
About Emera Inc.
(EMA-TSX) is an energy and services company with $4.0 billion in assets. Electricity is Emera’s core business. The company has two wholly-owned regulated electric utility subsidiaries, Nova Scotia Power Inc. and Bangor Hydro-Electric Company, which together serve 590,000 customers. Emera also owns 19% of St. Lucia Electricity Services Limited, which serves more than 50,000 customers on the Caribbean island of St. Lucia. In addition to its electric utility investments, Emera has a joint venture interest in Bear Swamp, a 600 megawatt pumped storage hydro-electric facility in northern Massachusetts; a 12.9% interest in the Maritimes & Northeast Pipeline; and Emera Energy Services which manages energy assets on behalf of third parties. Visit Emera on the web at www.emera.com.
For more information, please contact:
Nancy Tower, FCA
Chief Financial Officer
(902) 428-6991
Judy Steele, FCA
Director, Investor and External Relations
(902) 428-6999