Business
Emera's 2006 Earnings Increase to $125.8 Million
Emera's 2006 Earnings Increase to $125.8 Million.
About this update from Emera Incorporated
[{"type":"text","content":"\n\n\n\nOperating Cash Flow Doubles to $345.6 Million\n\n\nHALIFAX, Feb. 16 /CNW/ - (EMA-TSX): Emera Inc.'s consolidated net\nearnings increased 4% to $125.8 million in 2006, compared to $121.2 million in\n2005. Annual earnings per share were $1.14 compared to $1.11 in 2005. In 2005,\na portion of income and other taxes, which would have otherwise been expensed,\nwere deferred, pending regulatory approval of new rates. Without that\ndeferral, 2005 comparative earnings would have been $16.7 million lower.\n\n\n\"We are encouraged by the progress we made in 2006,\" said Chris\nHuskilson, President and Chief Executive Officer of Emera Inc. \"This year is\nalso off to a positive start, with the settlement of NSPI's rate case,\nincluding an agreement in principal to establish a fuel adjustment mechanism\nfor the utility. I am excited about our investment in St. Lucia, and look\nforward to exploring the Caribbean opportunity further in 2007.\"\n\n\nNova Scotia Power (NSPI), Emera's largest subsidiary, contributed\n$104.3 million to 2006 consolidated net earnings, compared to $91.2 million in\n2005, and $107.3 million in 2004. The re-establishment of NSPI's earnings\nlevels in 2006 is due to the combined effect of an electricity price increase\nearly in the year; sales and production volume changes, reflecting the\ntemporary shutdown of a large industrial customer and warmer weather; and\nincreased proceeds from the resale of natural gas.\n\n\nConsolidated net earnings for the three months ended December 31, 2006\nwere $33.5 million compared to $37.7 million for the fourth quarter of 2005.\nQuarterly earnings per share were $0.30 in 2006 compared to $0.34 in 2005.\n\n\nNSPI contributed $29.9 million to consolidated net earnings in Q4 2006,\ncompared to $34.0 million in Q4 2005. Earnings were lower quarter-over-quarter\nlargely because 2005 amounts included a $15 million after-tax favourable\nadjustment to fuel expense for that year resulting from changes in NSPI's\nnatural gas supply pricing, all of which was recorded in the fourth quarter.\nThis was partially offset by higher revenues in Q4 2006 due to a price\nincrease earlier in the year. Also, NSPI's fuel costs were lower quarter-over-\nquarter, primarily because warmer weather and slightly lower industrial sales\nenabled the utility to reduce its high marginal cost generation; and...