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
SYS-CON Events announced today that Keisoku Research Consultant Co. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Keisoku Research Consultant, Co. offers research and consulting in a wide range of civil engineering-related fields from information construction to preservation of cultural properties. For more information, vi...
SYS-CON Events announced today that Interface Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Interface Corporation is a company developing, manufacturing and marketing high quality and wide variety of industrial computers and interface modules such as PCIs and PCI express. For more information, visit http://www.i...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that Fusic will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Fusic Co. provides mocks as virtual IoT devices. You can customize mocks, and get any amount of data at any time in your test. For more information, visit https://fusic.co.jp/english/.
As businesses evolve, they need technology that is simple to help them succeed today and flexible enough to help them build for tomorrow. Chrome is fit for the workplace of the future — providing a secure, consistent user experience across a range of devices that can be used anywhere. In her session at 21st Cloud Expo, Vidya Nagarajan, a Senior Product Manager at Google, will take a look at various options as to how ChromeOS can be leveraged to interact with people on the devices, and formats ...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant th...
In his session at @ThingsExpo, Greg Gorman is the Director, IoT Developer Ecosystem, Watson IoT, will provide a short tutorial on Node-RED, a Node.js-based programming tool for wiring together hardware devices, APIs and online services in new and interesting ways. It provides a browser-based editor that makes it easy to wire together flows using a wide range of nodes in the palette that can be deployed to its runtime in a single-click. There is a large library of contributed nodes that help so...
SYS-CON Events announced today that Daiya Industry will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Daiya Industry specializes in orthotic support systems and assistive devices with pneumatic artificial muscles in order to contribute to an extended healthy life expectancy. For more information, please visit https://www.daiyak...
Many companies start their journey to the cloud in the DevOps environment, where software engineers want self-service access to the custom tools and frameworks they need. Machine learning technology can help IT departments keep up with these demands. In his session at 21st Cloud Expo, Ajay Gulati, Co-Founder, CTO and Board Member at ZeroStack, will discuss the use of machine learning for automating provisioning of DevOps resources, taking the burden off IT teams.
What is the best strategy for selecting the right offshore company for your business? In his session at 21st Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, will discuss the things to look for - positive and negative - in evaluating your options. He will also discuss how to maximize productivity with your offshore developers. Before you start your search, clearly understand your business needs and how that impacts software choices.
Most of the time there is a lot of work involved to move to the cloud, and most of that isn't really related to AWS or Azure or Google Cloud. Before we talk about public cloud vendors and DevOps tools, there are usually several technical and non-technical challenges that are connected to it and that every company needs to solve to move to the cloud. In his session at 21st Cloud Expo, Stefano Bellasio, CEO and founder of Cloud Academy Inc., will discuss what the tools, disciplines, and cultural...
SYS-CON Events announced today that Cedexis will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Cedexis is the leader in data-driven enterprise global traffic management. Whether optimizing traffic through datacenters, clouds, CDNs, or any combination, Cedexis solutions drive quality and cost-effectiveness.
Is advanced scheduling in Kubernetes achievable? Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, will answer these questions and demonstrate techniques for implementing advanced scheduling. For example, using spot instances ...