Business
Emera Earns $39.4 Million in Q1 2007
Emera Earns $39.4 Million in Q1 2007.
About this update from Emera Incorporated
[{"type":"text","content":"\n\n\n\nHALIFAX, April 27 /CNW/ - (EMA-TSX): Emera Inc.'s consolidated net\nearnings were $39.7 million in Q1 2007, compared to $43.6 million for the same\nperiod in 2006. Earnings were $11.3 million lower quarter over quarter at Nova\nScotia Power, but higher across the rest of Emera's investment portfolio.\nEarnings per share were $0.36 in Q1, 2007, compared to $0.40 in the prior\nyear.\n\n\n"We achieved some important milestones in Q1 on our two key goals,\nimproving returns in our existing businesses and growing Emera through higher\nreturn investments," said Chris Huskilson, President and Chief Executive\nOfficer of Emera Inc. "Nova Scotia Power worked productively with stakeholders\nto a successful rate settlement, which is key to improving the consistency of\nits returns. Bangor Hydro's new international transmission line is 60%\ncomplete. Bear Swamp finalized a capacity agreement that will add new revenue.\nBrunswick Pipe received a positive environmental report from the NEB. And\nEnergy Services completed a contract to manage natural gas purchases and\nassociated power sales for the largest combined cycle gas generating station\nin the country. It was a productive quarter."\n\n\nNova Scotia Power's contribution to consolidated earnings was\n$26.1 million in Q1 2007, compared to $37.4 million in Q1 2006. Electricity\nmargin (revenues less fuel for generation and purchased power) was\n$12.1 million lower quarter over quarter ($7.5 million after tax). This\nreflects the return to operation of a large industrial customer, which\nincreased sales volume but was serviced by higher marginal cost production,\nand lower natural gas resale margins. In addition, operating, maintenance and\ngeneral expenditures were $4.1 million higher quarter over quarter\n($2.5 million after tax), primarily due to higher storm costs and increased\nplant maintenance. Nova Scotia Power implemented an average 3.8% electricity\nrate increase on April 1, 2007. Hearings on the establishment of a Fuel\nAdjustment Mechanism are scheduled to begin June 18, 2007.\n\n\n"We knew Nova Scotia Power's earnings would be pressured in Q1 because of\nthe timing of new rates," said Mr. Huskilson. "We are satisfied with what NSPI\nwas able to achieve under challenging circumstances this quarter."\n\n\nBangor Hydro Electric contr...