Business
FortisAlberta reports 2006 results
FortisAlberta reports 2006 results.
About this update from Fortis Inc.
[{"type":"text","content":"\n\n\n\nCALGARY, Feb. 2 /CNW/ - (TSX:FTS) - FortisAlberta Inc. today announced\nnet earnings for the 12 months ending Dec. 31, 2006, of $41.4 million compared\nto $31.1 million for the same period last year. The higher earnings in 2006\nwere primarily related to operational efficiencies, lower income tax expense,\nand an increase in energy deliveries and customer counts due to a strong\nAlberta economy.\n\n\n\"FortisAlberta's strong performance in the areas of productivity,\nreliability, safety and customer service resulted in improved earnings.\nProductivity improvements were achieved even though we are operating in an\ninflationary provincial economy. FortisAlberta employees demonstrated\nexcellent performance and delivered results for our customers,\" said Philip\nHughes, President and CEO. \"Our record $242 million in capital expenditures in\n2006, a 46 per cent increase over 2005, provided the infrastructure to support\nAlberta's rapid economic growth while ensuring continued safe and reliable\nelectrical service to customers.\"\n\n\nNew customer connections accounted for close to half of the Company's\n2006 capital investments. Driven by the oil and gas sector and a residential\nhousing boom, FortisAlberta invested $116 million in customer growth-related\nprojects. The more than 6,000 projects completed were partially a result of\nnew technologies in the oil and gas industry, such as coalbed methane\nextraction in the Fort Assiniboine area and new production and pumping\nfacilities in the Christina Lake district. In 2007, FortisAlberta plans to\ninvest approximately $273 million, (which includes $16.9 million for Alberta\nElectric System Operator contributions), in capital investments required to\nmeet the rapid growth driven by Alberta's economy.\n\n\nNet earnings for the fourth quarter of 2006 were $8.3 million compared to\n$4.2 million for the same quarter in 2005. The higher earnings were primarily\nrelated to increased revenues from load growth, customer counts, operational\nefficiencies and decreased income tax expense, partially offset by increasing\ninterest and depreciation costs.\n\n\nTotal revenue for the quarter was $65.8 million compared to $58.7 million\nfor the same period in 2005. The higher revenue was due to an increase in\nenergy deliveries and customer counts to residential, commercial and oil and\ngas ...