CALGARY, ALBERTA — (Marketwired) — 04/26/13 — ATCO Ltd. (TSX: ACO.X) (TSX: ACO.Y)
ATCO today reported higher Adjusted Earnings in the first quarter of 2013 driven by continued strong contributions from ATCO Structures & Logistics– worldwide activities and continued investment in Alberta–s utility infrastructure.
Adjusted Earnings were $120 million for the quarter ended March 31, 2013 compared to $115 million in the same period of 2012. Earnings attributable to Class I and Class II Shares were $117 million for the quarter ended March 31, 2013 compared to $119 million in the same period of 2012. Adjusted Earnings will differ from earnings attributable to Class I and Class II Shares because of the timing of recoveries from or refunds to customers of amounts that are deferred by the Utilities for regulatory purposes; however, over time there is no difference.
ATCO Structures & Logistics– strong performance in modular structures operations continued in the first quarter of 2013 due to construction of BHP Billiton–s Jansen Potash Project in Saskatchewan and higher fleet sales in North America, offset by reduced earnings from the three large liquefied natural gas projects in Australia that were under construction at this time last year and are now substantially complete.
Growth in the rate base continues to have a positive impact on ATCO Electric. The Hanna Region Transmission Development Project, which will provide major transmission reinforcement in southeast Alberta, is nearing completion, and is expected to be in-service by the end of the second quarter of 2013. Construction commenced on the Eastern Alberta Transmission Line following receipt of project approval in late 2012. The project will provide additional transmission capacity to Alberta–s existing electricity transmission system. Together, ATCO Electric, ATCO Gas, and ATCO Pipelines invested $511 million in utility infrastructure in the first quarter of 2013 to support Alberta growth.
Adjusted Earnings for the quarter were partially offset by lower realized prices on short-term forward power sales contracts for ATCO Power–s Alberta generating plants and an unfavourable arbitration decision that reduced earnings for the Sheerness plant.
RECENT DEVELOPMENTS
FINANCIAL SUMMARY AND RECONCILIATION OF ADJUSTED EARNINGS
A financial summary and reconciliation of Adjusted Earnings to earnings attributable to Class I and Class II Shares is provided below:
The $58 million increase in revenues was due primarily to increased rate base in the utilities, colder weather in the first quarter of 2013, and increased flow-through natural gas sales in ATCO Energy Solutions– natural gas liquids extraction operations.
ATCO–s consolidated financial statements and management–s discussion and analysis for the three months ended March 31, 2013, will be available on the ATCO website (), via SEDAR () or can be requested from the Corporation.
ATCO Ltd., with more than 9,400 employees and assets of approximately $14 billion, delivers service excellence and innovative business solutions worldwide with leading companies engaged in structures & logistics (manufacturing, logistics and noise abatement), utilities (pipelines, natural gas and electricity transmission and distribution), energy (power generation, natural gas gathering, processing, storage and liquids extraction) and technologies (business systems solutions). More information can be found at .
Forward-Looking Information:
Certain statements contained in this news release may constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as “anticipate”, “plan”, “estimate”, “expect”, “may”, “will”, “intend”, “should”, and similar expressions. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Corporation believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.
Any forward-looking information contained in this news release represents the Corporation–s expectations as of the date hereof, and is subject to change after such date. The Corporation disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.
Contacts:
ATCO Ltd.
B.R. (Brian) Bale
Senior Vice President & Chief Financial Officer
(403) 292-7502