Emera (EMA-TSX): today reported results for the fourth quarter
and the year ended December 31, 2012.
Highlights:
-
Adjusted net income increased 6.8% to $230.5 million in 2012 (2011 -
$215.9 million). Adjusted net income excludes after-tax mark-to-market
losses of $9.7 million (2011 -$3.0 million), a $28.2 million gain on
an acquisition in 2011, and includes after-tax gains of $22.7 million
realized on Algonquin subscription receipts (2011 - $12.8 million).
-
Adjusted earnings per share increased 3.9% to $1.85 in 2012 (2011 -
$1.78).
-
Cash flows from operations were essentially flat at $397.6 million in
2012 (2011 – $399.5 million), including a $90 million ($58.9 million
after-tax) voluntary contribution to a pension plan made at the end of
the year.
-
Emera’s total assets increased 8.7% to $7.52 billion in 2012 (2011 -
$6.92 billion).
-
In September, 2012, Emera’s annual dividend increased to $1.40 per
share (2011 - $1.35 per share).
“2012 was a year of considerable achievement,” said Chris Huskilson,
President and CEO of Emera Inc. “Important progress was made on the
Maritime Link Project, including: finalizing the commercial agreements,
finalizing the terms of the federal loan guarantee, the joint
sanctioning of the Maritime Link, Muskrat Falls and Labrador Island Link
projects with Nalcor, filing the environmental assessment, and most
recently, filing the regulatory application with the UARB. We also
closed our 49% investment in First Wind’s northeast assets, furthered
our strategy in the Caribbean and increased our investment in Algonquin
Power to 18.5%. These accomplishments are all expected to be important
contributors to Emera’s continued success in delivering on our goal of 4
– 6% average annualized growth in EPS over the years to come.”
Annual Segmented Results
Emera reports its results in six operating segments: Nova Scotia Power,
Maine Utilities, Caribbean Utilities, Pipelines, Services Renewables and
Other, and Corporate.
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|
2012 Reported
Net Income
|
|
2012
Mark-to-market gains (losses)
|
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2012 Adjusted Net Income
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2011 Reported
Net Income
|
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2011 Mark-to- market gains (losses)
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2011
Gain on acquisition
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2011
Adjusted Net Income
|
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NSPI
|
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$126.0
|
|
-
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$126.0
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$123.5
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-
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-
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$123.5
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Maine
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$35.4
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-
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$35.4
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$37.0
|
|
-
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|
-
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$37.0
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Caribbean
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$23.2
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-
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$23.2
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$46.8
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-
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$28.2
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$18.6
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Pipelines
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$27.9
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-
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$27.9
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$27.9
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-
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-
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$27.9
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Services, Renewables & Other
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$33.7
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($9.7)
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$43.4
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$26.4
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($3.0)
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-
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$29.4
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Corporate
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$(25.4)
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-
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$(25.4)
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$(20.5)
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-
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-
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$(20.5)
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TOTAL
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$220.8
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($9.7)
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$230.5
|
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$241.1
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($3.0)
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$28.2
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$215.9
|
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|
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|
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Earnings per share
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$1.77
|
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$0.08
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$1.85
|
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$1.99
|
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$(0.02)
|
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$0.23
|
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$1.78
|
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Quarterly Segmented Results
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Q4 2012 Reported
Net Income
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Q4 2012 Mark-to-market gains (losses)
|
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Q4 2012 Adjusted Net Income
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Q4 2011 Reported
Net Income
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Q4 2011
Mark-to- market gains (losses)
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Q4 2011
Adjusted Net Income
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NSPI
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$27.0
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-
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$27.0
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$22.2
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|
-
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$22.2
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Maine
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$8.6
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|
-
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$8.6
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$9.8
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-
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$9.8
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Caribbean
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$6.7
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-
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$6.7
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$3.1
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-
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$3.1
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Pipelines
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$7.0
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-
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$7.0
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$6.9
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-
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$6.9
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Services, Renewables & Other
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($2.4)
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$(15.9)
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$13.5
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$5.4
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$(0.9)
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$6.3
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Corporate
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$(4.2)
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-
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$(4.2)
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$(0.6)
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-
|
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$(0.6)
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TOTAL
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$42.7
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$(15.9)
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$58.6
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$46.8
|
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$(0.9)
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$47.7
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Earnings per share
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$0.34
|
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$0.12
|
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$0.46
|
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$0.38
|
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$(0.01)
|
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$0.39
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Nova Scotia Power Inc. (NSPI)’s net income was $126 million in 2012
(2011 - $123.5 million). NSPI contributed $27.0 million to consolidated
net income in Q4 2012 (Q4 2011 - $22.2 million). The higher net income
in the quarter and year-over-year was primarily driven by continued
investment in cleaner energy sources and in system reliability.
Maine Utility Operations’ (Maine) was $35.4 million in 2012 (2011 - $37
million). Maine contributed $8.6 million to consolidated net income in
Q4 2012 (Q4 2011 - $9.8 million). The decreased net income in the
quarter and year-over-year is primarily a result of lower capitalized
construction overheads due to lower capital spending in 2012 largely
caused by some project delays that are now expected to commence in 2013,
and higher operating, maintenance and general expenses.
Caribbean Utility Operations (the Caribbean)’s net income was $23.2
million in 2012 (2011 Adjusted Net Income - $18.6 million). The
Caribbean contributed $6.7 million to consolidated net income in Q4 2012
(Q4 2011 - $3.1 million). The increased net income in the quarter and
year-over-year is primarily due to increased investment in Grand Bahama
Power Company (GBPC) by way of the new West Sunrise plant.
Pipelines’ contributed $27.9 million to consolidated net income in both
2012 and 2011; and $7 million in Q4 2012 (Q4 2011 - $6.9 million).
Emera’s Services Renewables and Other investments (SRO)’s net income,
adjusted to exclude mark to market impacts, was $43.4 million in 2012
(2011 Adjusted Net Income - $29.4 million). The increase in net income
is primarily due to $22.7 million of after-tax gains realized on the
conversion of Algonquin Power and Utilities Corp (Algonquin)
subscription receipts (2011 - $12.8 million). Excluding the effect of
the mark-to-market accounting adjustments, SRO contributed $13.5 million
in 2012 (Q42011 - $6.3 million). The increase in the quarter is
primarily due to an $8.4 million after-tax gain (Q42011 - nil) realized
on Algonquin subscription receipts.
Forward Looking Information
This news release contains forward looking information. Actual future
results may differ materially. Additional information related to Emera,
including the company’s Annual Information Form, can be found on SEDAR
at www.sedar.com
or on EDGAR at www.sec.gov.
Teleconference Call
The company will be hosting a teleconference at 4:00 pm Atlantic time
today (3:00 pm Toronto/Montreal/New York; 2:00 pm Winnipeg; 12:00 pm
Vancouver) to discuss the 2012 financial results.
Analysts and other interested parties wanting to participate in the call
should dial 1-866-225-0198 (in Toronto 416-340-8061) 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 905-694-9451), access code 6247187#
(available until midnight, Friday, February 22, 2013). The
teleconference will also be web cast live at emera.com
and available for playback for one year.
About Emera
Emera Inc. is an energy and services company with $7.53 billion in
assets and 2012 revenues of $2.1 billion. The company invests in
electricity generation, transmission and distribution, as well as gas
transmission and utility energy services. Emera's strategy is focused on
the transformation of the electricity industry to cleaner generation and
the delivery of that clean energy to market. Emera has investments
throughout northeastern North America, and in three Caribbean countries.
More than 80% of the company's earnings come from regulated investments.
Emera common and preferred shares are listed on the Toronto Stock
Exchange and trade respectively under the symbol EMA, EMA.PR.A., and
EMA.PR.C. Additional information can be accessed at emera.com,
or on sedar.com.