Canadian Utilities Reports 2014 First Quarter Earnings
April 25 2014 - 7:40AM
Marketwired
Canadian Utilities Reports 2014 First Quarter Earnings
CALGARY, ALBERTA--(Marketwired - Apr 25, 2014) - Canadian
Utilities Limited (TSX:CU)(TSX:CU.X) -
Canadian Utilities
today reported first-quarter adjusted earnings of $186 million in
2014 compared to $180 million in 2013.
Increased adjusted
earnings in the first quarter were due to continued capital
investment by the Utility companies. ATCO Electric, ATCO Gas and
ATCO Pipelines collectively invested $506 million in electricity
and natural gas transmission and distribution facilities to support
the continuing growth in the province and replace aging
infrastructure. Canadian Utilities earns a regulated rate of return
on its utility capital investment and expects to spend $2 billion
in 2014 on a number of projects, the largest of which is the
Eastern Alberta Transmission Line.
The Energy segment
also achieved a 20 per cent increase in adjusted earnings compared
to the same period in 2013 mainly due to higher natural gas and
propane prices.
Earnings
attributable to equity owners were $221 million for the quarter
ended March 31, 2014 compared to $183 million in the same period of
2013. Adjusted Earnings will differ from earnings attributable to
equity owners because of the timing of recoveries from or refunds
to customers of amounts that are deferred by the Utilities for
regulatory purposes; however, over time there is no difference.
Canadian Utilities
declared a second quarter dividend for 2014 of 26.75 cents per
Class A non-voting and Class B common share. Canadian Utilities'
annual dividend per share has increased for 42 consecutive
years.
FINANCIAL SUMMARY
AND RECONCILIATION OF ADJUSTED EARNINGS
A financial summary
and reconciliation of adjusted earnings to earnings attributable to
equity owners is provided below:
|
For the Quarter |
|
|
Ended March 31 |
|
($ Millions except per share data) |
2014 |
2013 |
|
Adjusted earnings (1) |
186 |
180 |
|
Adjustments for rate-regulated activities (2) |
23 |
(5 |
) |
Dividends on equity preferred shares |
12 |
8 |
|
Earnings attributable to equity owners |
221 |
183 |
|
Revenues |
1,017 |
876 |
|
Funds generated by operations (3) |
517 |
411 |
|
Weighted average shares outstanding (millions of shares) |
260.9 |
257.1 |
|
|
|
|
|
(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 3 to the consolidated financial statements for
descriptions of the adjustments for rate-regulated activities and
the timing of their recovery from or refund to customers. |
(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. |
The $141 million
increase in revenues was due primarily to increased rate base in
the Utilities segment and higher natural gas and propane prices in
the Energy segment.
The $106 million
increase in funds generated by operations was due primarily to
higher contributions received from customers for utility capital
expenditures.
Canadian Utilities'
consolidated financial statements and management's discussion and
analysis for the three months ended March 31, 2014, 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 $16 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.
Canadian Utilities LimitedB.R. (Brian) BaleSenior Vice President
& Chief Financial Officer(403)
292-7502www.canadianutilities.com
Canadian Utilities (TSX:CU.PR.D)
Historical Stock Chart
From Sep 2024 to Oct 2024
Canadian Utilities (TSX:CU.PR.D)
Historical Stock Chart
From Oct 2023 to Oct 2024