Business
FortisAlberta announces 2006 first quarter earnings and files final prospectus
FortisAlberta announces 2006 first quarter earnings and files final prospectus.
About this update from Fortis Inc.
[{"type":"text","content":"\n\n\n\n\nCALGARY, April 12 /CNW/ - (TSX:FTS) - FortisAlberta Inc. announced today\n2006 first quarter results reporting net earnings of $9.4 million compared to\n2005 first quarter net earnings of $7.8 million.\nThe $1.6 million increase in net earnings in the first quarter of 2006\nwas primarily related to increased revenues combined with decreased income tax\nexpense, partially offset by increased operating, interest and depreciation\ncosts.\n\"We were able to improve our performance in the first quarter of 2006 by\nachieving productivity gains, as well as improvements in the areas of safety,\nreliability and customer service,\" says Philip Hughes, President and CEO,\nFortisAlberta.\nTotal revenue for the quarter was $61.8 million compared to $58.6 million\nfor the same period in 2005. Revenue increased by $3.2 million primarily due\nto the increase in distribution revenue as a result of the 2005 rate increase\nof 2.1 per cent that was not reflected in the first quarter 2005 results as it\nwas approved and recorded in the second quarter of 2005. Also contributing to\nthe increase were higher energy deliveries and customer growth in the\nresidential, commercial and oil and gas customer classes as a result of a\nstrong provincial economy. Finally, there was an increase in franchise fee\nrevenues due to an increase in transmission rates in 2006.\nFortisAlberta incurred $40 million, net of customer contributions, in\ncapital expenditures in the first quarter of 2006 compared to $22.8 million,\nnet of customer contributions, in the first quarter of 2005. These\nexpenditures were required to meet customer demand for new facilities within\nthe Company's service territory. The robust Alberta economy has lead to an\nincrease in residential housing starts, investments in commercial activities\nand increased investment in facilities to serve the oil and gas sector.\n\"We continue to experience high growth rates within our service territory\nas evidenced by our capital expenditure program completed during the quarter\nas the provincial economy drives demand for new electrical infrastructure.\nDespite this high growth rate and the inflationary pressures of the economy,\nwe have been able to limit our requested rate increases to zero per cent and\nthree per cent for 2006 and 2007 respectively,\" says Hughes.\nFor a full copy of FortisAlber...