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
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...