CALGARY, April 17 /CNW/ - (TSX:FTS) - FortisAlberta Inc. announced today
2007 first quarter results reporting net earnings of $11.9 million compared to
2006 first quarter net earnings of $9.5 million.
The $2.4 million increase in net earnings in the first quarter of 2007
was primarily related to increased revenues combined with decreased income tax
expense, partially offset by increased interest and depreciation costs.
"Our improved performance is a result of continuing productivity
improvements, which have seen operating costs at FortisAlberta increase only
marginally in an inflationary environment," said Philip Hughes, President and
CEO, FortisAlberta. "Our focus on achieving efficient and reliable operations,
improving customer satisfaction and strong safety practices has allowed us to
meet customer expectations during the quarter."
Total revenue for the quarter was $63.3 million compared to $61.8 million
for the same period in 2006. Revenue increased by $1.5 million primarily due
to the increase in distribution revenue as a result of the 2007 rate increase
of 0.7 per cent and an increase in the number of residential, farm and oil and
gas sites, partially offset by a decrease in transmission and miscellaneous
During the quarter, FortisAlberta invested $43.4 million, net of customer
contributions of $11.8 million, in capital projects compared to $40.0 million,
net of customer contributions of $5.7 million, in 2006. The company
experienced a decrease in distribution projects in comparison to last year.
However, these were offset by increased spending in facilities and information
technology to meet current business requirements. "There has been a slight
slow down in growth as a result of lower commodity prices for gas and crude
oil price volatility causing projects to be deferred or cancelled," said
Hughes. "However, capital investment in 2007 will continue to be strong."
FortisAlberta expects to invest $243 million in capital projects for
2007, net of customer contributions totaling $33 million, compared to
$205 million, net of customer contributions totaling $37 million, in 2006.
"Strategically investing in capital projects to enhance and upgrade our
electrical system will help support Alberta's customer growth requirements and
continue to position FortisAlberta to provide high-quality electrical service
to our customers in a safe, reliable, and cost-effective manner," added
In the first quarter of 2007, FortisAlberta donated $100,000 as part of
its partnership with the Shock Trauma Air Rescue Society (STARS) Human Patient
Simulator Program. The company has also committed donations to the Alberta
Birds of Prey Centre and Junior Achievement of Southern Alberta.
The Company started construction of its new office and operations
facility in the City of Airdrie. This facility will house approximately 300
FortisAlberta employees and is expected to be complete early in 2008. In
addition, FortisAlberta opened new operational facilities in St. Albert,
Brooks and Sylvan Lake.
For a full copy of FortisAlberta's financial statements, management
discussion and analysis and annual information form, please visit
www.fortisalberta.com and click on the Investor Centre.
FortisAlberta is an electric distribution company with approximately
433,000 customers and more than 104,700 kilometres of power lines. It is a
wholly owned indirect subsidiary of Fortis Inc. - a diversified, international
distribution utility holding company with assets of approximately $5.4 billion
and annual revenues of approximately $1.5 billion. The Common Shares, First
Preference Shares, Series C; First Preference Shares, Series E; and First
Preference Shares, Series F; and Subscription Receipts of Fortis Inc. are
traded on the Toronto Stock Exchange under the symbols FTS, FTS.PR.C,
FTS.PR.E, FTS.PR.F, and FTS.R respectively. Fortis Inc. information can be
accessed at www.fortisinc.com.
FortisAlberta may include forward-looking statements in this release. By
their very nature, forward-looking statements are based on underlying
assumptions and are subject to inherent risks and uncertainties surrounding
future expectations generally. Such events include, but are not limited to,
general economic, market and business conditions, regulatory developments,
weather and competition. FortisAlberta cautions readers that should certain
events or uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary significantly from those expected. For
additional information with respect to certain of these risks or factors,
reference should be made to FortisAlberta's continuous disclosure materials
filed from time to time with Canadian Securities Regulatory Authorities.
FortisAlberta disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
For further information:
For further information: Investor Inquiries: James Harbilas, C.A., Vice
President, Finance and Chief Financial Officer, FortisAlberta Inc., Tel: (403)
514-4554, www.fortisalberta.com, firstname.lastname@example.org; Media Inquiries:
Jennifer MacGowan, Manager, Corporate Communications, FortisAlberta Inc., Tel:
(403) 514-4079, www.fortisalberta.com, email@example.com