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Emera Earns $39.7 million in Q1 2007

HALIFAX, Nova Scotia, April 27, 2007, (EMA-TSX):: Emera Inc.’s consolidated net earnings were $39.7 million in Q1 2007, compared to $43.6 million for the same period in 2006. Earnings were $11.3 million lower quarter over quarter at Nova Scotia Power, but higher across the rest of Emera’s investment portfolio. Earnings per share were $0.36 in Q1, 2007, compared to $0.40 in the prior year.

We achieved some important milestones in Q1 on our two key goals, improving returns in our existing businesses and growing Emera through higher return investments,” said Chris Huskilson, President and Chief Executive Officer of Emera Inc. Nova Scotia Power worked productively with stakeholders to a successful rate settlement, which is key to improving the consistency of its returns. Bangor Hydro’s new international transmission line is 60% complete. Bear Swamp finalized a capacity agreement that will add new revenue. Brunswick Pipe received a positive environmental report from the NEB. And Energy Services completed a contract to manage natural gas purchases and associated power sales for the largest combined cycle gas generating station in the country. It was a productive quarter.”

Nova Scotia Power’s contribution to consolidated earnings was $26.1 million in Q1 2007, compared to $37.4 million in Q1 2006. Electricity margin (revenues less fuel for generation and purchased power) was $12.1 million lower quarter over quarter ($7.5 million after tax). This reflects the return to operation of a large industrial customer, which increased sales volume but was serviced by higher marginal cost production, and lower natural gas resale margins. In addition, operating, maintenance and general expenditures were $4.1 million higher quarter over quarter ($2.5 million after tax), primarily due to higher storm costs and increased plant maintenance. Nova Scotia Power implemented an average 3.8% electricity rate increase on April 1, 2007. Hearings on the establishment of a Fuel Adjustment Mechanism are scheduled to begin June 18, 2007.

We knew Nova Scotia Power’s earnings would be pressured in Q1 because of the timing of new rates,” said Mr. Huskilson. We are satisfied with what NSPI was able to achieve under challenging circumstances this quarter.”

Bangor Hydro Electric contributed $6.9 million to consolidated net earnings in Q1 2007, compared to $3.7 million in Q1 2006, primarily due to the capitalization of $2.2 million of overhead expenses and allowance for funds used during construction to the Northeast Reliability Interconnect project. Also, colder temperatures quarter-over-quarter increased residential revenues.

Emera's Other operations contributed $6.7 million to net earnings in Q1 2007, compared to $2.5 million in Q1 2006. Emera Energy Services, the Maritimes & Northeast Pipeline (M&NP), and the Bear Swamp merchant generating facility all reported higher earnings. Energy Services benefited from cold weather in the northeast, which increased its natural gas marketing opportunities. M&NP received approval from the US Federal Energy Regulatory Commission to expand the US portion of the pipeline system to carry volumes from the proposed Brunswick Pipeline. As a result, M&NP was able to capitalize certain related costs in Q1 2007 which had been expensed in prior periods.

The Bear Swamp generating station is a pumped-storage hydro facility that typically pumps water into its reservoir using lower priced off-peak power, and uses that hydro capacity to generate electricity during higher priced on-peak periods. During the quarter, Bear Swamp finalized a long term Power Purchase Agreement with the Long Island Power Authority (LIPA) providing LIPA with 345 MW of capacity to May 31, 2010, and 100 MW thereafter, to April 30, 2021. In addition, Bear Swamp will provide LIPA with 12,200 MW/hr of super peak and peak energy weekly, at an escalating fixed price over the 14 year term of the agreement. Bear Swamp has contracted with its parent companies, Emera and Brookfield Power for the power supply necessary to produce the requirements of the LIPA agreement.

Contracting a portion of Bear Swamp provides a dependable earnings stream, but still preserves an opportunity for upside that is necessary to optimize a merchant facility,” said Mr. Huskilson.

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).

Teleconference Call

Emera is hosting a teleconference at 3:00 pm Atlantic time today (2:00 pm Toronto/Montreal/ New York; 1:00 pm Winnipeg; 11:00 am Vancouver) to discuss the Q1 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 3220368# (available until midnight, Friday, May 11, 2007). The teleconference will also be web cast live at www.emera.com and available for playback for one year.

About Emera 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 and provides related services. Visit Emera on the web at www.emera.com.