Emera Inc., the owner of Nova Scotia Power and other utilities, reported record earnings for the fourth quarter of 2009 of $37.5 million, compared with $25.3 million in the prior-year quarter.
For the full year ended Dec. 31, the energy giant earned $175.7 million, compared with $144.1 million in 2008, the Halifax company said in financial statements released Friday.
"2009 was a very positive year for Emera. We achieved record earnings, hit a record share price and progressed our strategy. . . . I’m optimistic about the many opportunities that exist for us in the changing energy industry," Emera president Chris Huskilson said during a conference call with analysts Friday.
Revenues were not disclosed in the company’s news release as the company’s auditors, Ernst & Young, were unable to get third-party auditors of Emera subsidiary Bear Swamp, but they are expected next week, said Nancy Tower, Emera’s chief financial officer.
Shareholders received good news, with the company’s board of directors approving a quarterly dividend of 28.5 cents per share, an increase of 0.01 per cent, payable to shareholders of record on May 17.
In trading Friday on the TSX, Emera shares rose 82 cents to $23.98. On Dec. 18, Emera’s stock hit a 52-week high of $25.57.
Huskilson said there will be many opportunities for the company as it strives to become a cleaner, greener utility and meet the mandated targets of having 25 per cent of electricity generated from renewable sources by 2015.
The company has been investing in several wind projects and launched the first tidal turbine in the Bay of Fundy in November, although it is not producing electricity for the grid.
"The reduction of emissions and addition of new renewable energy and transmission of these new renewables to customers has resulted in increased capital spending in 2009 and coming years," Huskilson told analysts.
"This is good news for the economy of Nova Scotia, as we are buying goods and services and hiring skilled people in the province. Over the long term, these renewables will displace some of the fuel costs that are currently incurred."
Nova Scotia Power’s capital budget for operating the utility, including renewables, is $430 million. In 2011, the utility is forecasting to spend $340 million, said Rob Bennett, Nova Scotia Power president.
Huskilson credits the company’s strong financial performance to its regulated utility and other businesses last year, resulting in "strong operating results" and continued growth with new acquisitions.
The successes include the completion of the 145-kilometre Brunswick Pipeline in New Brunswick that started to ship gas in July, and the deal to acquire Bayside Power, a 260-megawatt gas-fired power plant in Saint John, N.B.
The company also took a 9.9 per cent interest in Algonquin Power Income Fund.
Nova Scotia Power con-tributed $109.3 million to consolidated earnings in 2009, compared to $105.6 million for the same period in 2008. That was due to an increase in electricity margin and a fuel incentive paid to the company.
Emera has two wholly owned, regulated electric utility subsidiaries, Nova Scotia Power and Bangor Hydro Electric Co., which together have about 600,000 customers.
Bangor Hydro made $27.5 million last year, compared to $23 million in the previous year.
"This increase was mainly attributable to increased returns from new transmission investments and a stronger average U.S. dollar," the company stated.
The Brunswick Pipeline went into service in July. Emera also has a 12.9 per cent stake in the Sable natural gas pipeline, and those pipelines contributed $24.2 million to the bottom line in 2009, compared to $15.4 million in 2008.
Last week, Emera closed its purchase of the proposed 30-megawatt Digby wind park in Digby County. The purchase agreement involves 100 per cent of the project, including development rights and 20 General Electric wind turbines.
Huskilson said he expects the $80-million Digby wind project to be moved over to Nova Scotia Power.
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