Business
FortisAlberta announces 2007 first quarter earnings
FortisAlberta announces 2007 first quarter earnings.
About this update from Fortis Inc.
[{"type":"text","content":"\n\n\n\nCALGARY, April 17 /CNW/ - (TSX:FTS) - FortisAlberta Inc. announced today\n2007 first quarter results reporting net earnings of $11.9 million compared to\n2006 first quarter net earnings of $9.5 million.\n\n\nThe $2.4 million increase in net earnings in the first quarter of 2007\nwas primarily related to increased revenues combined with decreased income tax\nexpense, partially offset by increased interest and depreciation costs.\n\n\n"Our improved performance is a result of continuing productivity\nimprovements, which have seen operating costs at FortisAlberta increase only\nmarginally in an inflationary environment," said Philip Hughes, President and\nCEO, FortisAlberta. "Our focus on achieving efficient and reliable operations,\nimproving customer satisfaction and strong safety practices has allowed us to\nmeet customer expectations during the quarter."\n\n\nTotal revenue for the quarter was $63.3 million compared to $61.8 million\nfor the same period in 2006. Revenue increased by $1.5 million primarily due\nto the increase in distribution revenue as a result of the 2007 rate increase\nof 0.7 per cent and an increase in the number of residential, farm and oil and\ngas sites, partially offset by a decrease in transmission and miscellaneous\nrevenue.\n\n\nDuring the quarter, FortisAlberta invested $43.4 million, net of customer\ncontributions of $11.8 million, in capital projects compared to $40.0 million,\nnet of customer contributions of $5.7 million, in 2006. The company\nexperienced a decrease in distribution projects in comparison to last year.\nHowever, these were offset by increased spending in facilities and information\ntechnology to meet current business requirements. "There has been a slight\nslow down in growth as a result of lower commodity prices for gas and crude\noil price volatility causing projects to be deferred or cancelled," said\nHughes. "However, capital investment in 2007 will continue to be strong."\n\n\nFortisAlberta expects to invest $243 million in capital projects for\n2007, net of customer contributions totaling $33 million, compared to\n$205 million, net of customer contributions totaling $37 million, in 2006.\n"Strategically investing in capital projects to enhance and upgrade our\nelectrical system will help support Alberta's customer growth req...