Welcome!

News Feed Item

ATCO Achieved Record Earnings in 2013

CALGARY, ALBERTA -- (Marketwired) -- 02/20/14 -- ATCO Ltd. (TSX: ACO.X)(TSX: ACO.Y) ATCO today reported record earnings for 2013 and the Company's largest-ever annual investment in Alberta utility infrastructure.

Adjusted earnings were $390 million compared to $370 million in 2012. Earnings attributable to Class I and Class II Shares, which include items not in the normal course of business, were $418 million for 2013 compared to $370 million in 2012.

The Utilities business segment, which includes natural gas, electricity and pipeline infrastructure, drove the record adjusted earnings as a result of increased capital expenditures of $2.2 billion in 2013, exceeding the $2.1 billion spent in 2012. Investment was led by ATCO Electric, which is building new transmission infrastructure to meet Alberta's long term electricity demand and improve reliability for customers. Work continued on the $1.8 billion Eastern Alberta Transmission Line throughout the year, while the Hanna Region Transmission Development project was completed in the third quarter.

"Our Utilities companies had a strong year building critical infrastructure in Alberta," said Nancy Southern, Chair, President & CEO, ATCO. "I'm particularly pleased that we delivered the largest project in our history, the $650 million Hanna Transmission project, on time and $60 million under budget."

ATCO Power also contributed to the record adjusted earnings. The primary drivers were higher realized power prices and a continued focus on maintenance which led to higher plant availability.

Increased earnings attributable to Class I and Class II Shares were the result of higher adjusted earnings and ATCO Structures & Logistics' sale of its interests in its South American operations for cash proceeds of $124 million. The sale resulted in a gain of $88 million; the Company recognized earnings of $56 million after income taxes and non-controlling interests. Partly offsetting these earnings were impairments of power generation assets in the United Kingdom and natural gas gathering, processing and liquids extraction assets in western Canada.

ATCO had fourth quarter adjusted earnings of $97 million, compared to record earnings of $102 million for the same quarter in 2012. The lower earnings were a result of ATCO Structures & Logistics' reduced project activity in Australia and forgone earnings from the sale of the Company's modular structures operations in South America. ATCO Power also experienced lower power prices and increased planned maintenance outages in the fourth quarter. These decreases were partly offset by ATCO Structures & Logistics' strong fleet sales and workforce housing projects in North America, and ATCO's continued investment in utility infrastructure in Alberta. Earnings attributable to Class I and Class II Shares were $71 million in the fourth quarter compared to $98 million in the same period in 2012 because of the asset impairments.

RECENT DEVELOPMENTS


--  ATCO Structures & Logistics was awarded a contract to manufacture,
    install and operate a 1,200-person workforce housing facility for Shell
    Carmon Creek Project in northern Alberta.  Manufacturing work started in
    the fourth quarter of 2013, with completion scheduled for the second
    quarter of 2015.

--  ATCO Pipelines received approval from the Alberta Utilities Commission
    to proceed with the approximately $700 million Urban Pipeline
    Replacement Project. This project will replace and relocate the
    Company's aging, high-pressure natural gas pipelines located in densely
    populated areas of Calgary and Edmonton into the Transportation Utility
    Corridors that surround both cities.

--  In 2013, Standard and Poor's Rating Services re-affirmed ATCO's A
    (Stable) rating.  Additionally, in December 2013, Standard and Poor's
    upgraded ATCO Gas Australia's credit rating outlook from BBB (Positive)
    to A- (Stable).

--  ATCO declared a first quarter dividend for 2014 of 21.5 cents per Class
    I Non-Voting and Class II Voting Share, a 15% increase over the 18.75
    cents paid in the previous four quarters. ATCO's annual dividend per
    share has increased for 21 consecutive years.

--  On November 7, 2013, ATCO's subsidiary, CU Inc., issued $225 million of
    40-year 4.558% Debentures maturing November 7, 2053.

FINANCIAL SUMMARY AND RECONCILIATION OF ADJUSTED EARNINGS

A financial summary and reconciliation of adjusted earnings to earnings attributable to Class I and Class II Shares is provided below:


                                           For the Three      For the Year
                                            Months Ended         Ended
                                          December 31 (4)    December 31 (4)
----------------------------------------------------------------------------
($ Millions except share data)               2013      2012     2013    2012
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Adjusted earnings (1)                          97       102      390     370
Gain and loss on asset sales (2)               (2)        -       54       -
Impairments (2)                               (25)        -      (25)      -
Adjustments for rate-regulated
 activities (2)                                 1        (4)      (1)      -
----------------------------------------------------------------------------
Earnings attributable to Class I and
 Class II Shares                               71        98      418     370
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Revenues                                    1,164     1,080    4,359   4,012
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Funds generated by operations (3)             486       463    1,868   1,636
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Weighted average shares outstanding
 (millions of shares)                       114.8     114.6    114.8   115.0
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 (1) Adjusted earnings are earnings attributable to Class I and Class II
Shares after adjusting for the timing of revenues and expenses associated
with rate-regulated activities. Adjusted earnings also exclude one-time
gains and losses, significant impairments and items that are not in the
normal course of business or as a result of day-to-day operations. Adjusted
earnings present earnings on the same basis as was used prior to adopting
International Financial Reporting Standards (IFRS) - that basis being the
U.S. accounting principles for rate-regulated entities - and they are a key
measure used to assess segment performance, to reflect the economics of rate
regulation and to facilitate comparability of ATCO's earnings with other
Canadian rate-regulated companies.

(2) Refer to Note 6 to the consolidated financial statements for
descriptions of the adjustments.

(3) This measure is cash flow from operations before changes in non-cash
working capital. It does not have standardized meaning under IFRS and may
not be comparable to similar measures used by other companies.

(4) 2012 financial information has been restated as a result of adopting new
and amended IFRS accounting standards that became effective in 2013.

The $347 million year over year increase in revenues ($84 million in the fourth quarter) was mainly due to growth in the Utilities segment, higher realized power prices, and increased fuel costs in power generation and natural gas extraction operations that are flowed through to customers.

Funds generated by operations increased $232 million for the year ($23 million in the fourth quarter) primarily for the same reasons earnings increased, coupled with higher contributions received from customers for utility capital expenditures.

ATCO's consolidated financial statements and management's discussion and analysis for the three months and year ended December 31, 2013 will be available on the ATCO website (www.atco.com), via SEDAR (www.sedar.com) or can be requested from the Company.

ATCO Ltd., with more than 9,800 employees and assets of approximately $16 billion, delivers service excellence and innovative business solutions worldwide with leading companies engaged in Structures & Logistics (manufacturing, logistics and noise abatement), Utilities (pipelines, natural gas and electricity transmission and distribution), Energy (power generation, natural gas gathering, processing, storage and liquids extraction) and Technologies (business systems solutions). More information can be found at www.atco.com.

Forward-Looking Information:

Certain statements contained in this news release may constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", and similar expressions. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Company believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.

Any forward-looking information contained in this news release represents the Company's expectations as of the date hereof, and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.

Contacts:
ATCO Ltd.
B.R. (Brian) Bale
Senior Vice President & Chief Financial Officer
(403) 292-7502
www.atco.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Continuous testing helps bridge the gap between developing quickly and maintaining high quality products. But to implement continuous testing, CTOs must take a strategic approach to building a testing infrastructure and toolset that empowers their team to move fast. Download our guide to laying the groundwork for a scalable continuous testing strategy.
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
CenturyLink has announced that application server solutions from GENBAND are now available as part of CenturyLink’s Networx contracts. The General Services Administration (GSA)’s Networx program includes the largest telecommunications contract vehicles ever awarded by the federal government. CenturyLink recently secured an extension through spring 2020 of its offerings available to federal government agencies via GSA’s Networx Universal and Enterprise contracts. GENBAND’s EXPERiUS™ Application...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Big Data engines are powering a lot of service businesses right now. Data is collected from users from wearable technologies, web behaviors, purchase behavior as well as several arbitrary data points we’d never think of. The demand for faster and bigger engines to crunch and serve up the data to services is growing exponentially. You see a LOT of correlation between “Cloud” and “Big Data” but on Big Data and “Hybrid,” where hybrid hosting is the sanest approach to the Big Data Infrastructure pro...
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., and Logan Best, Infrastructure & Network Engineer at Webair, focused on real world deployments of DDoS mitigation strategies in every layer of the network. He gave an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He also outlined what we have found in our experience managing and running thousands of Linux and Unix ...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
We all know the latest numbers: Gartner, Inc. forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from last year, and will reach 20.8 billion by 2020. We're rapidly approaching a data production of 40 zettabytes a day – more than we can every physically store, and exabytes and yottabytes are just around the corner. For many that’s a good sign, as data has been proven to equal money – IF it’s ingested, integrated, and analyzed fast enough. Without real-ti...
"We view the cloud not really as a specific technology but as a way of doing business and that way of doing business is transforming the way software, infrastructure and services are being delivered to business," explained Matthew Rosen, CEO and Director at Fusion, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"Software-defined storage is a big problem in this industry because so many people have different definitions as they see fit to use it," stated Peter McCallum, VP of Datacenter Solutions at FalconStor Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
With 15% of enterprises adopting a hybrid IT strategy, you need to set a plan to integrate hybrid cloud throughout your infrastructure. In his session at 18th Cloud Expo, Steven Dreher, Director of Solutions Architecture at Green House Data, discussed how to plan for shifting resource requirements, overcome challenges, and implement hybrid IT alongside your existing data center assets. Highlights included anticipating workload, cost and resource calculations, integrating services on both sides...
"We are a well-established player in the application life cycle management market and we also have a very strong version control product," stated Flint Brenton, CEO of CollabNet,, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"We provide DevOps solutions. We also partner with some key players in the DevOps space and we use the technology that we partner with to engineer custom solutions for different organizations," stated Himanshu Chhetri, CTO of Addteq, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.