Canadian Utilities Limited (TSX:CU, CU.X)
Canadian Utilities Limited today reported higher earnings for
the second quarter mainly due to additional infrastructure
investment in the utilities to support Alberta growth and increased
earnings from ATCO Australia, offset by the impact of major planned
maintenance outages at two of ATCO Power's generating plants.
Earnings attributable to equity owners of Canadian Utilities
were $105 million ($0.74 per share) and Adjusted Earnings were $95
million for the second quarter of 2012 compared to $98 million
($0.70 per share) and $90 million, respectively, in the same period
of 2011.
Earnings attributable to equity owners of Canadian Utilities
were $298 million ($2.19 per share) and Adjusted Earnings were $270
million for the six months ended June 30, 2012, compared to $274
million ($2.04 per share) and $256 million, respectively, in the
first half of 2011.
ATCO Electric, ATCO Gas and ATCO Pipelines invested an
additional $438 million in the second quarter in infrastructure to
support Alberta's continuing growth, bringing the total for the
first half of 2012 to $937 million, which was more than double the
$458 million invested in the first half of 2011. These expenditures
add to the rate base upon which the companies earn a return. A
significant amount of this investment was required to connect major
industrial customers in northeast Alberta to the province's
transmission grid and to reinforce the electricity system serving
that growing region of the province.
Earnings from ATCO Australia include those from ATCO Gas
Australia, which was acquired at the end of July 2011. This
quarter, ATCO Gas Australia received a favorable decision on its
appeal of an earlier decision covering the current access
arrangement period 2010 to 2014, which resulted in increased
Adjusted Earnings of $10 million.
Canadian Utilities' increased earnings for the second quarter
and first half of 2012 were reduced by major planned maintenance
outages at the largest of ATCO Power's three Battle River units and
one of its two Sheerness units. Scheduled maintenance is undertaken
to ensure continued safe, reliable and efficient plant
operations.
RECENT DEVELOPMENTS
-- Canadian Utilities declared a third quarter dividend for 2012 of 44.25
cents per Class A non-voting and Class B common share. Canadian
Utilities' dividend per share has increased for 40 consecutive years.
-- Canadian Utilities issued $150 million of 4.90% Cumulative Redeemable
Second Preferred Shares Series AA on June 18 in order to redeem $150
million of 6.00% Cumulative Redeemable Second Preferred Shares Series X
on June 30. Canadian Utilities issued $150 million of 4.90% Cumulative
Redeemable Second Preferred Shares Series BB on July 5 in order to
redeem $150 million of 5.80% Cumulative Redeemable Second Preferred
Shares Series W on July 19.
-- Canadian Utilities announced the implementation of a Dividend
Reinvestment Plan (DRIP) effective with the quarterly dividend payment
in September to eligible Class A and Class B shareholders of record as
of August 10, 2012 enrolled in the program.
FINANCIAL SUMMARY AND RECONCILIATION OF ADJUSTED EARNINGS
A financial summary and reconciliation of Adjusted Earnings to
earnings attributable to equity owners is provided below:
For the Three Months For the Six Months Ended
Ended June 30 June 30
----------------------------------------------------------------------------
($ Millions except per
share data) 2012 2011 2012 2011
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Adjusted Earnings (1) 95 90 270 256
Adjustments for Rate
Regulated Activities (2) 1 3 10 7
Acquisition Transaction
Costs - (3) - (3)
Dividends on Equity
Preferred Shares 9 8 18 14
----------------------------------------------------------------------------
Earnings Attributable to
Equity Owners 105 98 298 274
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Earnings Per Share 0.74 0.70 2.19 2.04
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Revenues 706 666 1,543 1,475
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Funds Generated By
Operations (3) 297 261 715 644
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Adjusted Earnings are earnings attributable to equity owners
after adjusting for the timing of revenues and expenses associated
with rate regulated activities and dividends on equity preferred
shares of Canadian Utilities. Adjusted Earnings also exclude
one-time gains and losses and items that are not in the normal
course of business or day-to-day operations. Adjusted Earnings
present earnings on the same basis as was used prior to adopting
IFRS - that basis being the U.S. accounting principles for rate
regulated entities - and they are a key measure used to assess
segment performance, to reflect the economics of rate regulation
and to facilitate comparability of Canadian Utilities' earnings
with other Canadian rate regulated companies.
(2) Refer to Note 3 to the consolidated financial statements for
descriptions of the adjustments for rate regulated activities and
the timing of their recovery from or refund to customers.
(3) This measure is cash flow from operations before changes in
non-cash working capital. It does not have standardized meaning
under International Financial Reporting Standards (IFRS) and may
not be comparable to similar measures used by other companies.
The increase in revenues in the second quarter and first half of
2012 was due primarily to increased rate base in the utilities, as
well as the addition of ATCO Gas Australia in late July 2011. These
increases were partially offset by lower flow through natural gas
sales in ATCO Midstream and lower Alberta Power Pool prices.
Funds Generated by Operations increased in the second quarter
and first half of 2012 primarily for the same reasons earnings
increased, as well as higher contributions by utility customers
required to connect customers to utility infrastructure.
Canadian Utilities' consolidated financial statements and
management's discussion and analysis for the three and six months
ended June 30, 2012, will be available on the Canadian Utilities
website (www.canadianutilities.com), via SEDAR (www.sedar.com) or
can be requested from the Corporation.
Alberta-based Canadian Utilities Limited, an ATCO company, with
more than 6,700 employees and assets of approximately $12 billion,
delivers service excellence and innovative business solutions
worldwide with leading companies engaged in utilities (pipelines,
natural gas and electricity transmission and distribution), energy
(power generation, natural gas gathering, processing, storage and
liquids extraction) and technologies (business systems solutions).
More information can be found at www.canadianutilities.com.
Forward-Looking Information:
Certain statements contained in this news release may constitute
forward-looking information. Forward-looking information is often,
but not always, identified by the use of words such as
"anticipate", "plan", "estimate", "expect", "may", "will",
"intend", "should", and similar expressions. Forward-looking
information involves known and unknown risks, uncertainties and
other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
information. The Corporation believes that the expectations
reflected in the forward-looking information are reasonable, but no
assurance can be given that these expectations will prove to be
correct and such forward-looking information should not be unduly
relied upon.
Any forward-looking information contained in this news release
represents the Corporation's expectations as of the date hereof,
and is subject to change after such date. The Corporation disclaims
any intention or obligation to update or revise any forward-looking
information whether as a result of new information, future events
or otherwise, except as required by applicable securities
legislation.
Contacts: Canadian Utilities Limited B.R. (Brian) Bale Senior
Vice President & Chief Financial Officer (403) 292-7502
www.canadianutilities.com
Canadian Utilities (TSX:CU.PR.C)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Canadian Utilities (TSX:CU.PR.C)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024
