CALGARY, March 7, 2014 /CNW/ - ENMAX Corporation (ENMAX) today announced its financial results for the year ended December 31, 2013. Earnings for the year were $352.5 million, compared to earnings of $225.0 million in 2012. The increase is a result of the $175.9 million gain from the sale of ENMAX Envision Inc. in Q2, 2013. In 2013, earnings from continuing operations were $172.3 million compared to $215.6 million in 2012. This decrease reflects the negative impact of the extended outage at Keephills Unit 1 coal plant (that, when operating, provides power to ENMAX under a power purchase arrangement) offset by improved margins in other parts of the business.
Fourth quarter earnings in 2013 were $88.3 million compared to $63.9 million in the fourth quarter of 2012, reflecting higher operating margins in the regulated business. As part of the year-end process, ENMAX declared a dividend of $60 million to be paid to The City of Calgary in 2014. "ENMAX faced both unique opportunities and extreme challenges in 2013, including an unprecedented flood that affected our Calgary system and a significant loss of supply due to the Keephills outage," said Gianna Manes, President and CEO, ENMAX. "With planning, strong execution and tireless dedication by our ENMAX team, we overcame these challenges, seized opportunities and successfully closed the year with a strong fourth quarter and solid overall safety, operational and financial performance for 2013 providing for a substantial dividend to our Shareholder, The City of Calgary."
Key highlights of 2013 include:
- A strong ENMAX safety record with no injuries resulting in lost time.
- A strategic joint venture with Capital Power for 50 per cent ownership in the Shepard Energy Centre and the sale of ENMAX Envision Inc. to strengthen ENMAX's financial position and position itself for future growth.
- ENMAX Energy, the competitive business, improved customer satisfaction and growth and maintained high reliability of ENMAX Energy's own fleet, despite supply challenges with the outage of the Keephills Unit 1 coal plant.
- ENMAX Power, our regulated business, made a record capital investment in the infrastructure critical to the reliability of a growing Calgary, including the completion of three new major substations.
- Effective, timely and safe disconnection and subsequent restoration of power to approximately 34,000 customers in eight days during the June 2013 Calgary flood. The event resulted in $4.6 million in operational costs and $4.9 million in capitalized costs being incurred.
- Strong contributions to the community with donations by ENMAX and its team of time and money to flood-affected and vulnerable Albertans, with more than 470 volunteers and more than $3 millon in community contributions of cash, in-kind and employee donations, to organizations such as Canadian Red Cross, the Distress Centre, Aspen Family and Community Network Society and the United Way.
Selected Consolidated Financial Information
(millions of dollars, except where otherwise noted)
| Three months ended
| Year ended
|Net earnings from continuing operations||88.3||61.6||172.3||215.6|
|Return on assets (1)||12.9%||8.7%|
|Return on equity (2)||14.7%||10.5%|
|Total shareholder's equity||2,460.2||2,161.9|
|(1)||Return on assets is equal to net earnings, including gain on sale, before after-tax interest charges for the year divided by average total assets (adjusted for capital assets under construction and current liabilities) for the year.|
|(2)||Return on equity is equal to net earnings, including gain on sale, for the year divided by average shareholder's equity for the year.|
ENMAX Corporation, through subsidiaries and predecessors, has provided Albertans with safe, reliable electricity for over 100 years. The ENMAX group of companies provides electricity, natural gas and value-added energy services to residential, commercial and industrial metered customer locations throughout Alberta. ENMAX Energy Corporation, a subsidiary of ENMAX Corporation, is one of Alberta's leading competitive electricity retailers.
Caution: This news release is intended to be read in conjunction with the 2013 Annual Financial Report including Management's Discussion and Analysis and Financial Statements. Commentary provided here may not be a suitable source of information for readers who are not familiar with ENMAX's operations and is not a substitute for reading the Financial Statements and Management's Discussion and Analysis.
SOURCE: ENMAX Corporation
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