Click here to close now.




















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
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
"We do data integration for B2B also application to application, and we do data management and enable Big Data," explained Pat Adamiak, Vice President, Product Marketing at Liaison Technologies, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
The Cloud industry has moved from being more than just being able to provide infrastructure and management services on the Cloud. Enter a new era of Cloud computing where monetization’s services through the Cloud are an essential piece of strategy to feed your organizations bottom-line, your revenue and Profitability. In their session at 16th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, discussed how to easily o...
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
"ProfitBricks was founded in 2010 and we are the painless cloud - and we are also the Infrastructure as a Service 2.0 company," noted Achim Weiss, Chief Executive Officer and Co-Founder of ProfitBricks, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at Cloud Expo, Alex Gorbachev, President of Intelligent Systems Services Inc., shared foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN storage co...
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Learn how to solve the problem of keeping files in sync between multiple Docker containers. In his session at 16th Cloud Expo, Aaron Brongersma, Senior Infrastructure Engineer at Modulus, discussed using rsync, GlusterFS, EBS and Bit Torrent Sync. He broke down the tools that are needed to help create a seamless user experience. In the end, can we have an environment where we can easily move Docker containers, servers, and volumes without impacting our applications? He shared his results so yo...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...