|By Marketwired .||
|May 1, 2014 07:45 AM EDT||
CALGARY, ALBERTA -- (Marketwired) -- 05/01/14 --
First Quarter 2014 Highlights
-- Record normalized earnings of $73.7 million, a 33 percent increase compared to first quarter 2013; -- 23 percent increase to $179.2 million in normalized EBITDA, compared to first quarter 2013; -- Normalized funds from operations of $129.8 million, compared to $122.4 million in first quarter 2013; -- Forrest Kerr nears completion with the commencement of waterflow on April 28; and -- Increased dividend by $0.02 per share per month for an annual dividend of $1.77 per share.
AltaGas Ltd. (AltaGas) (TSX:ALA)(TSX:ALA.PR.A)(TSX:ALA.PR.U)(TSX:ALA.PR.E) today reported record first quarter normalized earnings of $73.7 million ($0.60 per share), compared to $55.5 million ($0.53 per share) in the same period 2013. Normalized EBITDA increased 23 percent to $179.2 million for the first quarter 2014, compared to $145.9 million for the same period 2013. Normalized funds from operations was $129.8 million ($1.06 per share) for the three months ended March 31, 2014, compared to $122.4 million ($1.16 per share) for the same period 2013.
"We are pleased to report a record quarter with strong asset performance across all our business segments," said David Cornhill, Chairman and CEO of AltaGas. "The stronger results were driven mainly by the energy infrastructure assets we added over the past two years and there is more to come. The Board and management remain committed to delivering shareholder value as we continue to execute on our five-year, $2.5 billion growth plans."
Increased earnings in the first quarter were driven by higher natural gas volumes processed, the partial ownership of Petrogas, the addition of Blythe, colder weather in Michigan, Alberta and Nova Scotia, and favorable exchange rates. Results in the quarter were partially offset by lower earnings from Power in Alberta and higher costs in Gas related to natural gas storage and extraction premiums. In addition, the Blythe facility was on major turnaround during the month of March.
On a GAAP basis, net income applicable to common shares was $39.9 million ($0.33 per share) for the three months ended March 31, 2014, compared to $49.0 million ($0.46 per share) for the same period 2013. Net income applicable to common shares includes an after-tax gain of $9.0 million from the sale of assets, offset by a non-cash after-tax provision of $28.7 million related to assets from the acquisition of Taylor NGL Limited Partnership in 2008, a non-cash after-tax provision of $8.1 million related to a number of small hydro power assets under development that are in a sales process, mark-to-market accounting and the cost of early redemption of medium-term notes.
In the first quarter, AltaGas continued to make progress on its five-year $2.5 billion growth program. AltaGas sanctioned the Alton natural gas storage project in Nova Scotia and the regional liquefied natural gas (LNG) project in Dawson Creek, B.C., for approximately $125 million. This brings total secured growth capital to over $1 billion.
Northwest Run-of-river Projects
AltaGas continues to make solid progress on its three Northwest run-of-river hydro projects. Forrest Kerr completed commissioning of the head-works and intake structure at the end of March, which set the stage for the project to achieve a significant milestone on April 28 with commencement of waterflow into the power tunnel. Remaining commissioning and construction activities continue on schedule with the focus on the powerhouse systems and high voltage switchyard. The tailrace tunnel was completed during first quarter 2014 with all tunnelling and underground excavation work now finished. AltaGas expects the Northwest Transmission Line to be available in time to enable Forrest Kerr to be in service by mid-2014.
At the 16 MW Volcano Creek project, construction continues to pace ahead of schedule. The tailrace is complete, with no further in-river work required. The turbine assembly is in progress and the penstock installation has commenced. The project remains on track to be in service in late 2014.
At the 66 MW McLymont Creek project, excavation of the powerhouse foundation is complete and installation of the powerhouse foundations has commenced. Clearing of the intake access road is 85 percent complete and approximately 65 percent of the 2,800 metre tunnel has been excavated. The project is expected to be in service in mid-2015.
AltaGas has made significant progress in developing its liquefied petroleum gas (LPG) export business. The AltaGas Idemitsu Joint Venture Limited Partnership's (AIJVLP) two-thirds ownership of Petrogas, together with Petrogas' acquisition of the Ferndale LPG export terminal in the State of Washington are significant steps in moving the LPG export initiative forward. The goal is to reach 60,000 Bbls/d of export capability through Ferndale and one other export facility by the end of the current decade.
AltaGas, Idemitsu and Petrogas are working together to build the LPG export business from Ferndale. LPG shipments are targeted to begin in the second quarter of 2014 and increase over the course of the next few years. In addition to the Ferndale site, the AIJVLP continues to progress the development of a LPG export terminal on the west coast of Canada. Terminal sites and refrigeration technology have been identified and FEED studies are ongoing.
AltaGas continues to advance its LNG export initiative. The AIJVLP continues to focus on the Triton LNG project, which received approval from the National Energy Board on April 16, 2014, to export 2.3 million tonnes of LNG per year. LNG exports are subject to consultations with First Nations and the completion of the feasibility study, siting, permitting, regulatory approvals and facility construction.
The AIJVLP continues to work with various parties to support the Companies' Creditors Arrangement Act (CCAA) Plan of Arrangement proceedings for the Douglas Channel LNG project. The various parties continue to work on completing term sheets which may allow the project to be restructured under CCAA in accordance with the terms which have been substantially agreed to by the secured creditors. The completion of the term sheets is currently targeted for May 5. If the May 5 deadline is met, AIJVLP plans to develop definitive agreements and stakeholders are expected to vote on the CCAA plan of arrangement following the approximately six-week proof of claim period.
Monthly Common Share Dividend and Quarterly Preferred Share Dividend
-- The Board of Directors increased the dividend by 16 percent and approved the May 2014 dividend of $0.1475 per common share. The dividend will be paid on June 16, 2014, to common shareholders of record on May 26, 2014. The ex-dividend date is May 22, 2014. This dividend is an eligible dividend for Canadian income tax purposes; -- The Board of Directors approved a dividend of $0.3125 per share for the period commencing April 1, 2014 and ending June 30, 2014, on AltaGas' outstanding Series A Preferred Shares. The dividend will be paid on June 30, 2014 to shareholders of record on June 17, 2014. The ex-dividend date is June 13, 2014; -- The Board of Directors approved a dividend of US$0.275 per share for the period commencing April 1, 2014 and ending June 30, 2014, on AltaGas' outstanding Series C Preferred Shares. The dividend will be paid on June 30, 2014 to shareholders of record on June 17, 2014. The ex-dividend date is June 13, 2014; and -- The Board of Directors also approved a dividend of $0.3125 per share for the period commencing April 1, 2014, and ending June 30, 2014, on AltaGas' outstanding Series E Preferred Shares. The dividend will be paid on June 30, 2014 to shareholders of record on June 17, 2014. The ex-dividend date is June 13, 2014.
CONSOLIDATED FINANCIAL REVIEW
Three months ended (unaudited) March 31 ($ millions) 2014 2013 ---------------------------------------------------------------------------- Revenue 823.8 613.5 Net revenue(1) 296.5 237.1 Normalized operating income(1) 137.0 109.2 Normalized EBITDA(1) 179.2 145.9 Net income applicable to common shares 39.9 49.0 Normalized net income(1) 73.7 55.5 Total assets 7,377.4 5,972.9 Total long-term liabilities 4,044.2 3,261.3 Net additions to property, plant and equipment 153.7 119.7 Dividends declared(2) 47.0 38.0 Cash flows Normalized funds from operations(1) 129.8 122.4 Three months ended March 31 ($ per share, except shares outstanding) 2014 2013 ---------------------------------------------------------------------------- Normalized EBITDA(1) 1.46 1.38 Net income - basic 0.33 0.46 Net income - diluted 0.32 0.45 Normalized net income(1) 0.60 0.53 Dividends declared(2) 0.38 0.36 Cash flows Normalized funds from operations(1) 1.06 1.16 Shares outstanding - basic (millions) During the period(3) 122.6 105.7 End of period 122.9 106.1 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (1) Non-GAAP financial measure; see discussion in Non-GAAP Financial Measures section of the first quarter 2014 MD&A. (2) Dividends declared per common share per month of $0.12 beginning September 10, 2012, $0.125 beginning April 24, 2013 and $0.1275 beginning July 31, 2013. (3) Weighted average.
CONFERENCE CALL AND WEBCAST DETAILS:
AltaGas will hold a conference call today at 9:00 a.m. MT (11:00 a.m. ET) to discuss first quarter financial results, progress on construction projects and other corporate developments.
Members of the media, investment communities and other interested parties may dial (416) 340-2218 or call toll free at 1-866-225-0198. There is no passcode. Please note that the conference call will also be webcast. To listen, please go to http://www.altagas.ca/investors/presentations_and_events. The webcast will be archived for one year.
Shortly after the conclusion of the call, a replay will be available by dialing (905) 694-9451 or 1-800-408-3053. The passcode is 6350008. The replay expires at midnight (Eastern) on May 8, 2014.
AltaGas is an energy infrastructure business with a focus on natural gas, power and regulated utilities. AltaGas creates value by acquiring, growing and optimizing its energy infrastructure, including a focus on clean energy sources. For more information visit: www.altagas.ca.
This news release contains forward-looking statements. When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to AltaGas or an affiliate of AltaGas, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve 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 statements. Such statements reflect AltaGas' current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in AltaGas' public disclosure documents. Many factors could cause AltaGas' actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release as intended, planned, anticipated, believed, sought, proposed, estimated or expected, and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. AltaGas does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...
Aug. 31, 2015 09:45 AM EDT Reads: 584
Contrary to mainstream media attention, the multiple possibilities of how consumer IoT will transform our everyday lives aren’t the only angle of this headline-gaining trend. There’s a huge opportunity for “industrial IoT” and “Smart Cities” to impact the world in the same capacity – especially during critical situations. For example, a community water dam that needs to release water can leverage embedded critical communications logic to alert the appropriate individuals, on the right device, as...
Aug. 31, 2015 09:40 AM EDT
A producer of the first smartphones and tablets, presenter Lee M. Williams will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. In his session at @ThingsExpo, Lee Williams, COO of ETwater, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ET...
Aug. 31, 2015 09:30 AM EDT Reads: 121
This Enterprise Strategy Group lab validation report of the NEC Express5800/R320 server with Intel® Xeon® processor presents the benefits of 99.999% uptime NEC fault-tolerant servers that lower overall virtualized server total cost of ownership. This report also includes survey data on the significant costs associated with system outages impacting enterprise and web applications. Click Here to Download Report Now!
Aug. 31, 2015 08:30 AM EDT Reads: 198
U.S. companies are desperately trying to recruit and hire skilled software engineers and developers, but there is simply not enough quality talent to go around. Tiempo Development is a nearshore software development company. Our headquarters are in AZ, but we are a pioneer and leader in outsourcing to Mexico, based on our three software development centers there. We have a proven process and we are experts at providing our customers with powerful solutions. We transform ideas into reality.
Aug. 31, 2015 07:45 AM EDT Reads: 532
Skeuomorphism usually means retaining existing design cues in something new that doesn’t actually need them. However, the concept of skeuomorphism can be thought of as relating more broadly to applying existing patterns to new technologies that, in fact, cry out for new approaches. In his session at DevOps Summit, Gordon Haff, Senior Cloud Strategy Marketing and Evangelism Manager at Red Hat, discussed why containers should be paired with new architectural practices such as microservices rathe...
Aug. 31, 2015 06:00 AM EDT Reads: 393
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
Aug. 31, 2015 04:00 AM EDT Reads: 404
Whether you like it or not, DevOps is on track for a remarkable alliance with security. The SEC didn’t approve the merger. And your boss hasn’t heard anything about it. Yet, this unruly triumvirate will soon dominate and deliver DevSecOps faster, cheaper, better, and on an unprecedented scale. In his session at DevOps Summit, Frank Bunger, VP of Customer Success at ScriptRock, will discuss how this cathartic moment will propel the DevOps movement from such stuff as dreams are made on to a prac...
Aug. 31, 2015 04:00 AM EDT Reads: 224
It’s been proven time and time again that in tech, diversity drives greater innovation, better team productivity and greater profits and market share. So what can we do in our DevOps teams to embrace diversity and help transform the culture of development and operations into a true “DevOps” team? In her session at DevOps Summit, Stefana Muller, Director, Product Management – Continuous Delivery at CA Technologies, answered that question citing examples, showing how to create opportunities for ...
Aug. 31, 2015 03:00 AM EDT Reads: 482
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Aug. 31, 2015 02:00 AM EDT Reads: 450
SYS-CON Events announced today that DataClear Inc. will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The DataClear ‘BlackBox’ is the only solution that moves your PC, browsing and data out of the United States and away from prying (and spying) eyes. Its solution automatically builds you a clean, on-demand, virus free, new virtual cloud based PC outside of the United States, and wipes it clean...
Aug. 30, 2015 11:45 PM EDT Reads: 396
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Aug. 30, 2015 10:00 PM EDT Reads: 348
Any Ops team trying to support a company in today’s cloud-connected world knows that a new way of thinking is required – one just as dramatic than the shift from Ops to DevOps. The diversity of modern operations requires teams to focus their impact on breadth vs. depth. In his session at DevOps Summit, Adam Serediuk, Director of Operations at xMatters, Inc., will discuss the strategic requirements of evolving from Ops to DevOps, and why modern Operations has begun leveraging the “NoOps” approa...
Aug. 30, 2015 06:45 PM EDT Reads: 370
SYS-CON Events announced today that G2G3 will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based on a collective appreciation for user experience, design, and technology, G2G3 is uniquely qualified and motivated to redefine how organizations and people engage in an increasingly digital world.
Aug. 30, 2015 05:00 PM EDT Reads: 466
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
Aug. 30, 2015 05:00 PM EDT Reads: 134