Business
Emera Reports Third Quarter Earnings of $19.5 Million
Emera Reports Third Quarter Earnings of $19.5 Million.
About this update from Emera Incorporated
[{"type":"text","content":"\n\n\n\n\nHALIFAX, Nov. 3 /CNW/ - (TSX - EMA): Emera Inc.'s consolidated net\nearnings were $19.5 million in Q3 2006 compared to $15.9 million in Q3 2005.\nEmera's earnings per share were $0.18 in Q3 2006 compared to $0.14 in Q3 2005.\n\"Emera continues to post solid financial results in 2006,\" said Chris\nHuskilson, President and Chief Executive Officer of Emera Inc. \"We remain\nfocused on two priorities. First, ensuring our regulated electric utilities\nconsistently recover their costs of service and earn appropriate returns. And\nsecond, building on this solid foundation with new investments like the\nNortheast Reliability Interconnect and the Brunswick Pipeline that will grow\nearnings over time.\"\nThe quarterly earnings improvement reflects higher earnings at the\nCompany's largest subsidiary, Nova Scotia Power Inc. (NSPI). NSPI's\ncontribution to consolidated earnings was $12.7 million in Q3 2006, compared\nwith $2.7 million in Q3 2005. The re-establishment of earnings levels in 2006\nis due to the combined effect of an electricity price increase earlier this\nyear; and higher proceeds from the resale of natural gas, which reduce overall\nfuel costs. Sales and production volume decreases associated with the\ntemporary shutdown of a large industrial customer had a minimal effect on\nelectricity margin in the quarter. On October 10th, Nova Scotia Power\nrequested an average 7.5% increase in electricity rates for the coming year,\nto recover higher projected fuel costs, and previously deferred and approved\nexpenses. Hearings are scheduled to begin January 22, 2007.\nBangor Hydro Electric (BHE), Emera's electricity transmission and\ndistribution utility in Maine, contributed $5.1 million to consolidated net\nearnings in Q3 2006 compared to $4.4 million in Q3 2005. Lower operating\nexpenses reflecting the capitalization of costs associated with the Northeast\nReliability Interconnect transmission project more than offset the effects of\na stronger Canadian dollar.\nEmera's Other operations contributed $1.7 million to Q3 2006 consolidated\nnet earnings compared to $8.8 million in Q3 2005. Increased interest expense\nin Other due primarily to foreign exchange gains in Q3 2005 and lower energy\nmarketing margins were key factors.\nConsolidated cash provided by operating activities was $98.8 in Q3 2006,\ncompared to $116.7 mill...