Welcome!

News Feed Item

Canadian Utilities Achieved Record Earnings in 2013

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

Adjusted earnings were $572 million compared to $515 million in 2012. Earnings attributable to equity owners, which include items not in the normal course of business, were $587 million for 2013 compared to $553 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, Canadian Utilities. "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.

Higher adjusted earnings and a one-time gain through ATCO Structures & Logistics' sale of its interests in its South American operations contributed to increased earnings attributable to equity owners. 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.

Canadian Utilities had fourth quarter adjusted earnings of $149 million compared to $141 million for the same period in 2012. The increase was mainly the result of on-going investment in utility infrastructure in Alberta. Earnings attributable to equity owners were $117 million in the fourth quarter compared to $142 million in the same period in 2012 because of the asset impairments.

RECENT DEVELOPMENTS


--  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 Canadian
    Utilities' 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). 
    
--  Canadian Utilities declared a first quarter dividend for 2014 of 26.75
    cents per Class A non-voting and Class B common share, a 10% increase
    over the 24.25 cents paid in each of the previous four quarters.
    Canadian Utilities' annual dividend per share has increased for 42
    consecutive years. 
    
--  On November 7 2013, CU Inc., a subsidiary of Canadian Utilities, issued
    $225 million of 40-year 4.558% Debentures maturing on November 7, 2053. 

FINANCIAL SUMMARY AND RECONCILIATION OF ADJUSTED EARNINGS

A financial summary and reconciliation of adjusted earnings to earnings attributable to equity owners is provided below:


                                       For the Three                        
                                        Months Ended     For the Year Ended 
                                       December 31(4)       December 31(4)  
----------------------------------------------------------------------------
($Millions except share data)            2013      2012      2013       2012
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Adjusted earnings (1)                     149       141       572        515
Gain and loss on asset sales(2)            (1)        -        14          -
Impairments(2)                            (47)        -       (47)         -
Adjustments for rate-regulated                                              
 activities (2)                             3        (7)        3          3
Dividends on equity preferred shares       13         8        45         35
----------------------------------------------------------------------------
Earnings attributable to equity                                             
 owners                                   117       142       587        553
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Revenues                                  905       829     3,381      3,039
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Funds generated by operations (3)         451       403     1,687      1,449
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Weighted average shares outstanding                                         
 (millions of shares)                   259.8     256.0     258.4      255.3
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Adjusted earnings are earnings attributable to equity owners after      
adjusting for the timing of revenues and expenses associated with rate-     
regulated activities and dividends on equity preferred shares of Canadian   
Utilities. Adjusted earnings also exclude one-time gains and losses,        
significant impairments and items that are not in the normal course of      
business or 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 Canadian Utilities' 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 $342 million year over year increase in revenues ($76 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 $238 million for the year ($48 million in the fourth quarter) primarily for the same reasons earnings increased, coupled with higher contributions received from customers for utility capital expenditures.

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

Canadian Utilities Limited, an ATCO company, with more than 7,400 employees and assets of approximately $15 billion, delivers service excellence and innovative business solutions worldwide with leading companies engaged in 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.canadianutilities.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:
Canadian Utilities Limited
B.R. (Brian) Bale
Senior Vice President & Chief Financial Officer
(403) 292-7502
www.canadianutilities.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
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
SYS-CON Events announced today that EARP Integration will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. EARP Integration is a passionate software house. Since its inception in 2009 the company successfully delivers smart solutions for cities and factories that start their digital transformation. EARP provides bespoke solutions like, for example, advanced enterprise portals, business intelligence systems an...
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
In his opening keynote at 20th Cloud Expo, Michael Maximilien, Research Scientist, Architect, and Engineer at IBM, will motivate why realizing the full potential of the cloud and social data requires artificial intelligence. By mixing Cloud Foundry and the rich set of Watson services, IBM's Bluemix is the best cloud operating system for enterprises today, providing rapid development and deployment of applications that can take advantage of the rich catalog of Watson services to help drive insigh...
SYS-CON Events announced today that Carbonite will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Carbonite protects your entire IT footprint with the right level of protection for each workload, ensuring lower costs and dependable solutions with DoubleTake and Evault.
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs oft...
One of the biggest challenges with adopting a DevOps mentality is: new applications are easily adapted to cloud-native, microservice-based, or containerized architectures - they can be built for them - but old applications need complex refactoring. On the other hand, these new technologies can require relearning or adapting new, oftentimes more complex, methodologies and tools to be ready for production. In his general session at @DevOpsSummit at 20th Cloud Expo, Chris Brown, Solutions Marketi...
DevOps at Cloud Expo – being held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real r...
SYS-CON Events announced today that Cloud Academy will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...
SYS-CON Events announced today that Outscale will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outscale's technology makes an automated and adaptable Cloud available to businesses, supporting them in the most complex IT projects while controlling their operational aspects. You boost your IT infrastructure's reactivity, with request responses that only take a few seconds.
As cloud adoption continues to transform business, today's global enterprises are challenged with managing a growing amount of information living outside of the data center. The rapid adoption of IoT and increasingly mobile workforce are exacerbating the problem. Ensuring secure data sharing and efficient backup poses capacity and bandwidth considerations as well as policy and regulatory compliance issues.
The 21st International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...