Emera Inc., the owner of Nova Scotia Power and other utilities, is reporting record earnings of $44.8 million, compared to $37.3 million the previous year, in third-quarter financial results released Friday.
"We have momentum in our business and this is translating into record earnings for the first three quarters of this year. In fact, Emera shares have provided an annualized total return to shareholders of 14.5 per cent over the last five years. This result is one that we are particularly proud of as it is proof that our strategy is working," Chris Huskilson, Emera president, told analysts during a conference call.
Emera’s stock was up 25 cents on the Toronto Stock Exchange late Friday, trading at $30.20 a share.
The Halifax-based company also reported profits of $151.5 million for the first nine months of this year, compared to $138.2 million for the same period in 2009.
Huskilson also noted several milestones for the company over the past three months, with the advancement of the Maine and Maritimes Corp. as well as a transaction with NV Energy.
NB Power and Emera continue to work together to "formalize an agreement" to develop a new transmission line from Nova Scotia to southern New Brunswick, said Huskilson.
"New capacity in Nova Scotia and New Brunswick benefits everyone in the region. It improves our options for future renewable energy development. It enhances the reliability of the systems," he said.
This week, Nova Scotia Power and its partner, NewPage Port Hawkesbury, closed a deal after receiving regulatory approval to go ahead with a $208-million project to burn wood waste at a new power plant at the mill’s site in Point Tupper starting in 2012.
Also, Nova Scotia Power appeared before government regulators this month to hike power rates for residential customers by 6.5 per cent starting next year. If approved by the board, it would be the sixth power rate increase in nine years in Nova Scotia.
Nova Scotia Power’s earnings were $22.4 million for the third quarter this year, compared to $16.6 million for the same period last year.
The company stated the increase relates primarily to lower income tax expenses as a result of tax deductions associated with NSPI’s increased renewable investments.
Emera has $508 billion in assets. Besides Nova Scotia Power, it operates Bangor Hydro Electric Co. in Maine and the Brunswick Pipeline, a 145-kilometre gas pipeline in New Brunswick.
Bangor Hydro Electric contributed $11.5 million to earnings in the third quarter of 2010, compared to $8.8 million in the same period in 2009. The increase was primarily due to increases in transmission pool revenue due to recovery of regionally funded transmission investments, in addition to other increases in transmission revenues in 2010.
Emera’s pipelines contributed $8.5 million to earnings in the third quarter, compared to $5.7 million in the same period in 2009.
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