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Canadian Utilities Ltd
Symbol C : CU
Shares Issued 88,816,883
Close 2013-04-25 C$ 81.86
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Canadian Utilities earns $183-million in fiscal Q1 2013

2013-04-26 09:10 ET - News Release

Mr. Brian Bale reports

CANADIAN UTILITIES REPORTS 2013 FIRST QUARTER EARNINGS

Canadian Utilities Ltd. had higher adjusted earnings in the first quarter of 2013 as the company continues to invest in utility infrastructure to support Alberta growth.

Adjusted earnings were $180-million for the quarter ended March 31, 2013, compared with $174-million in the same period of 2012. Earnings attributable to equity owners were $183-million for the quarter ended March 31, 2013, compared with $190-million in the same period of 2012. 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.

Growth in the rate base continues to have a positive impact on Atco Electric. The Hanna region transmission development project, which will provide major transmission reinforcement in southeast Alberta, is nearing completion, and is expected to be in service by the end of the second quarter of 2013. Construction commenced on the eastern Alberta transmission line following receipt of project approval in late 2012. The project will provide additional transmission capacity to Alberta's existing electricity transmission system. Together, Atco Electric, Atco Gas and Atco Pipelines invested $511-million in utility infrastructure in the first quarter of 2013 to support Alberta growth.

Adjusted earnings for the quarter were partially offset by lower realized prices on short-term forward power sales contracts for Atco Power's Alberta generating plants and an unfavourable arbitration decision that reduced earnings for the Sheerness plant.

Recent developments

  • Canadian Utilities declared a second quarter dividend for 2013 of 48.5 cents per Class A non-voting and Class B common share. Canadian Utilities' annual dividend per share has increased for 41 consecutive years.
  • Canadian Utilities issued $175-million of 4.5-per-cent cumulative redeemable second preferred shares at a price of $25.00 per share.
  • Canadian Utilities announced on Feb. 21, 2013, that it intends to split its Class A non-voting shares and Class B common shares on a two-for-one basis by way of a share dividend in 2013. Canadian Utilities' parent, Atco Ltd., also announced on the same day its intention to split its shares by way of a share dividend in 2013. The share splits of both companies are expected to occur concurrently at a date to be determined following the Canadian Utilities and Atco annual general meetings, which are scheduled for May 8, 2013, and May 16, 2013, respectively.

Financial summary and reconciliation of adjusted earnings

A financial summary and reconciliation of adjusted earnings to earnings attributable to equity owners is provided in the table.

        FINANCIAL SUMMARY AND RECONCILIATION OF ADJUSTED EARNINGS
                    (In millions, except per share)
                                                           For the quarter
                                                            ended March 31,
                                                          2013        2012

Adjusted earnings                                       $  180      $  174
Adjustments for rate-regulated activities                   (5)          7
Dividends on equity preferred shares                         8           9
Earnings attributable to equity owners                     183         190
Revenues                                                   876         811
Funds generated by operations                              411         411

The $65-million increase in revenues was due primarily to increased rate base in the utilities, colder weather in the first quarter of 2013 and increased flow-through natural gas sales in Atco Energy Solutions' natural gas liquids extraction operations.

Canadian Utilities' consolidated financial statements, and management's discussion and analysis for the three months ended March 31, 2013, will be available on the Canadian Utilities website, via SEDAR or can be requested from the corporation.

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