Emera Reports 2012 Earnings

HALIFAX, Nova Scotia--(BUSINESS WIRE)--Emera (EMA-TSX): today reported results for the fourth quarter and the year ended December 31, 2012.

“2012 was a year of considerable achievement”

Highlights:

• Adjusted net income increased 6.8% to $230.5 million in 2012 (2011 - $215.9 million). Adjusted net income excludes after-tax mark-to-market losses of $9.7 million (2011 -$3.0 million), a $28.2 million gain on an acquisition in 2011, and includes after-tax gains of $22.7 million realized on Algonquin subscription receipts (2011 - $12.8 million).
• Adjusted earnings per share increased 3.9% to $1.85 in 2012 (2011 - $1.78).
• Cash flows from operations were essentially flat at $397.6 million in 2012 (2011 – $399.5 million), including a $90 million ($58.9 million after-tax) voluntary contribution to a pension plan made at the end of the year.
• Emera’s total assets increased 8.7% to $7.52 billion in 2012 (2011 - $6.92 billion).
• In September, 2012, Emera’s annual dividend increased to $1.40 per share (2011 - $1.35 per share).

“2012 was a year of considerable achievement,” said Chris Huskilson, President and CEO of Emera Inc. “Important progress was made on the Maritime Link Project, including: finalizing the commercial agreements, finalizing the terms of the federal loan guarantee, the joint sanctioning of the Maritime Link, Muskrat Falls and Labrador Island Link projects with Nalcor, filing the environmental assessment, and most recently, filing the regulatory application with the UARB. We also closed our 49% investment in First Wind’s northeast assets, furthered our strategy in the Caribbean and increased our investment in Algonquin Power to 18.5%. These accomplishments are all expected to be important contributors to Emera’s continued success in delivering on our goal of 4 – 6% average annualized growth in EPS over the years to come.”

Annual Segmented Results

Emera reports its results in six operating segments: Nova Scotia Power, Maine Utilities, Caribbean Utilities, Pipelines, Services Renewables and Other, and Corporate.

	2012 Reported Net Income	2012 Mark-to-market gains (losses)	2012 Adjusted Net Income	2011 Reported Net Income	2011 Mark-to- market gains (losses)	2011 Gain on acquisition	2011 Adjusted Net Income
NSPI	$126.0	-	$126.0	$123.5	-	-	$123.5
Maine	$35.4	-	$35.4	$37.0	-	-	$37.0
Caribbean	$23.2	-	$23.2	$46.8	-	$28.2	$18.6
Pipelines	$27.9	-	$27.9	$27.9	-	-	$27.9
Services, Renewables & Other	$33.7	($9.7)	$43.4	$26.4	($3.0)	-	$29.4
Corporate	$(25.4)	-	$(25.4)	$(20.5)	-	-	$(20.5)
TOTAL	$220.8	($9.7)	$230.5	$241.1	($3.0)	$28.2	$215.9
Earnings per share	$1.77	$0.08	$1.85	$1.99	$(0.02)	$0.23	$1.78

Quarterly Segmented Results

	Q4 2012 Reported Net Income	Q4 2012 Mark-to-market gains (losses)	Q4 2012 Adjusted Net Income	Q4 2011 Reported Net Income	Q4 2011 Mark-to- market gains (losses)	Q4 2011 Adjusted Net Income
NSPI	$27.0	-	$27.0	$22.2	-	$22.2
Maine	$8.6	-	$8.6	$9.8	-	$9.8
Caribbean	$6.7	-	$6.7	$3.1	-	$3.1
Pipelines	$7.0	-	$7.0	$6.9	-	$6.9
Services, Renewables & Other	($2.4)	$(15.9)	$13.5	$5.4	$(0.9)	$6.3
Corporate	$(4.2)	-	$(4.2)	$(0.6)	-	$(0.6)
TOTAL	$42.7	$(15.9)	$58.6	$46.8	$(0.9)	$47.7
Earnings per share	$0.34	$0.12	$0.46	$0.38	$(0.01)	$0.39

Nova Scotia Power Inc. (NSPI)’s net income was $126 million in 2012 (2011 - $123.5 million). NSPI contributed $27.0 million to consolidated net income in Q4 2012 (Q4 2011 - $22.2 million). The higher net income in the quarter and year-over-year was primarily driven by continued investment in cleaner energy sources and in system reliability.

Maine Utility Operations’ (Maine) was $35.4 million in 2012 (2011 - $37 million). Maine contributed $8.6 million to consolidated net income in Q4 2012 (Q4 2011 - $9.8 million). The decreased net income in the quarter and year-over-year is primarily a result of lower capitalized construction overheads due to lower capital spending in 2012 largely caused by some project delays that are now expected to commence in 2013, and higher operating, maintenance and general expenses.

Caribbean Utility Operations (the Caribbean)’s net income was $23.2 million in 2012 (2011 Adjusted Net Income - $18.6 million). The Caribbean contributed $6.7 million to consolidated net income in Q4 2012 (Q4 2011 - $3.1 million). The increased net income in the quarter and year-over-year is primarily due to increased investment in Grand Bahama Power Company (GBPC) by way of the new West Sunrise plant.

Pipelines’ contributed $27.9 million to consolidated net income in both 2012 and 2011; and $7 million in Q4 2012 (Q4 2011 - $6.9 million).

Emera’s Services Renewables and Other investments (SRO)’s net income, adjusted to exclude mark to market impacts, was $43.4 million in 2012 (2011 Adjusted Net Income - $29.4 million). The increase in net income is primarily due to $22.7 million of after-tax gains realized on the conversion of Algonquin Power and Utilities Corp (Algonquin) subscription receipts (2011 - $12.8 million). Excluding the effect of the mark-to-market accounting adjustments, SRO contributed $13.5 million in 2012 (Q42011 - $6.3 million). The increase in the quarter is primarily due to an $8.4 million after-tax gain (Q42011 - nil) realized on Algonquin subscription receipts.

Forward Looking Information

This news release contains forward looking information. Actual future results may differ materially. Additional information related to Emera, including the company’s Annual Information Form, can be found on SEDAR at www.sedar.com or on EDGAR at www.sec.gov.

Teleconference Call

The company will be hosting a teleconference at 4:00 pm Atlantic time today (3:00 pm Toronto/Montreal/New York; 2:00 pm Winnipeg; 12:00 pm Vancouver) to discuss the 2012 financial results.

Analysts and other interested parties wanting to participate in the call should dial 1-866-225-0198 (in Toronto 416-340-8061) at least 10 minutes prior to the start of the call. No pass code is required. The teleconference will be recorded. If you are unable to join the teleconference live, you can dial for playback toll-free at 1-800-408-3053 (in Toronto 905-694-9451), access code 6247187# (available until midnight, Friday, February 22, 2013). The teleconference will also be web cast live at emera.com and available for playback for one year.

About Emera

Emera Inc. is an energy and services company with $7.53 billion in assets and 2012 revenues of $2.1 billion. The company invests in electricity generation, transmission and distribution, as well as gas transmission and utility energy services. Emera's strategy is focused on the transformation of the electricity industry to cleaner generation and the delivery of that clean energy to market. Emera has investments throughout northeastern North America, and in three Caribbean countries. More than 80% of the company's earnings come from regulated investments. Emera common and preferred shares are listed on the Toronto Stock Exchange and trade respectively under the symbol EMA, EMA.PR.A., and EMA.PR.C. Additional information can be accessed at emera.com, or on sedar.com.