Business
Emera Earns $43.6 Million in Q1 2006
Emera Earns $43.6 Million in Q1 2006.
About this update from Emera Incorporated
[{"type":"text","content":"\n\n\n\n\nCash Flow Improves Substantially\n\nHALIFAX, May 9 /CNW/ - (EMA-TSX): Emera Inc.'s consolidated net earnings\nwere $43.6 million in Q1 2006, compared to $48.3 million for the same period\nin 2005. Net cash provided by operating activities improved substantially, to\n$69.1 million in Q1 2006, compared to $18.0 million in the first quarter of\n2005. Earnings per share were $0.40, compared to $0.44 in 2005.\n\"We're gaining a more solid financial footing in 2006,\" said Chris\nHuskilson, President and CEO of Emera. \"Our goal with our regulated businesses\nis to provide returns that are reasonable and dependable.\"\nNova Scotia Power's contribution to consolidated earnings was \n$3.4 million lower in Q1 2006, at $37.4 million, compared to $40.8 million in\nQ1 2005. However, in Q1 2005, a portion of provincial grants and taxes and\nincome taxes, which would have otherwise been expensed, were deferred, pending\nregulatory approval of new rates. Without that deferral, 2005 comparative\nearnings would have been $15.3 million lower. Electricity margin (revenues\nless fuel for generation and purchased power) was $26.9 million higher in Q1\n2006 compared to Q1 2005, substantially due to three factors:\n\n- higher allowed rates, effective April 2005 and mid-March 2006;\n- sales and production volume decreases, reflecting the temporary\n shutdown of a large industrial customer and warmer weather. This\n resulted in a net favourable effect on electricity margin quarter over\n quarter because the cost of peak electricity production is greater\n than the average industrial selling price;\n- increased proceeds from the resale of natural gas, reflecting the\n renegotiation of NSPI's natural gas supply contract late in 2005.\n\nBangor Hydro Electric (BHE), Emera's electricity transmission and\ndistribution utility in Maine, contributed $3.7 million to consolidated net\nearnings in Q1 2006, compared to $4.1 million in Q1 2005, reflecting a\nstronger Canadian dollar.\nEmera's Other operations contributed $2.5 million to net earnings in Q1\n2006, compared to $3.4 million in Q1 2005. The addition of the Bear Swamp\nhydro-electric facility in Q2 2005 added $1.8 million in earnings before\ninterest and taxes quarter over quarter. This was offset by lower energy\nmarketing margins, reflecting reduced activity due to warmer weather quarter\nove...