Business
Fuel Costs Reduce Emera 2005 Earnings
Fuel Costs Reduce Emera 2005 Earnings.
About this update from Emera Incorporated
[{"type":"text","content":"\n\n\n\n\nHALIFAX, Feb. 20 /CNW/ - (EMA-TSX): Emera Inc.'s consolidated net\nearnings were $121.2 million for the year ended December 31, 2005, down from\n$129.8 million in 2004.\nThe decrease in annual earnings reflects lower earnings at Emera's\nlargest subsidiary, Nova Scotia Power Inc. (NSPI), which earned $91.2 million\nin 2005, compared to $107.3 million in 2004. NSPI's fuel costs were\napproximately $71 million, or 23% higher year over year, due to higher coal\nand oil prices. The related earnings impact was only partially offset by an\napproximately 5% electricity rate increase implemented in the spring of 2005,\nand the deferral of first quarter corporate taxes in advance of that rate\nincrease.\nEmera's consolidated net earnings for the fourth quarter of 2005 were\n$37.7 million, compared to $31.4 million for the fourth quarter of 2004.\nAgain, higher coal and oil prices increased fuel expense in NSPI by\napproximately $16 million. This was offset by a revised agreement on natural\ngas supply pricing, reached in November, which was more favourable than had\nbeen estimated. It resulted in a $24 million adjustment to fuel expense for\n2005, all of which was recorded in Q4.\nEarnings per share were $1.11 for the year ended December 31, 2005,\ncompared to $1.20 in the prior year; and $0.34 for the fourth quarter of 2005,\ncompared to $0.30 in Q4, 2004.\n\"Rising fuel costs continue to have a major effect on the company,\" said\nChris Huskilson, President and Chief Executive Officer of Emera Inc. \"The\nissue of fuel costs was central to Nova Scotia Power's 2006 rate application.\nA decision from the regulator is expected soon.\"\nBangor Hydro Electric (BHE), Emera's electricity transmission and\ndistribution utility in Maine, contributed $4.0 million to consolidated net\nearnings in Q4, 2005, compared to $4.4 million in Q4, 2004; and $14.9 million\nfor the year ended December 31, 2005, compared to $18.5 million for 2004. The\nlower earnings primarily reflect increases in depreciation rates, higher\nNEPOOL transmission expenses, and the effect of a stronger Canadian dollar.\nEmera's Other operations contributed $15.1 million to consolidated net\nearnings for the year ended December 31, 2005, compared to $4.0 million in\n2004. The addition of the Bear Swamp hydro-electric facility, foreign exchange\ngains, and the capitaliza...