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CALGARY, ALBERTA--(Marketwired - Feb 25, 2016) - Canadian Utilities Limited (TSX:CU)(TSX:CU.X)
Canadian Utilities today announced adjusted earnings for 2015 of $483 million compared to $575 million in 2014. Canadian Utilities had fourth quarter 2015 adjusted earnings of $153 million compared to $182 million in the same period of 2014. Lower earnings were mainly due to lower Alberta Power Pool prices and the adverse earnings impact of several regulatory decisions received from the Alberta Utilities Commission (AUC) and the Australian Economic Regulation Authority in 2015.
In March 2015, the AUC released decisions on the Generic Cost of Capital and Performance Based Regulation Capital Tracker proceedings that covered the period from the beginning of 2013 to the end of 2015. In July 2015, ATCO Gas Australia received the Access Arrangement decision, covering the period from July 2014 to December 2019. The 2013 to 2015 earnings impact that resulted from these decisions was recorded in 2015. If the prior period impact of these retroactive decisions had been recorded in 2013 and 2014, adjusted earnings in 2015 would have been $53 million higher than the same period last year. The primary reason for increased earnings was due to the ongoing investment in building Alberta's and Australia's infrastructure.
|FINANCIAL SUMMARY AND RECONCILIATION OF ADJUSTED EARNINGS|
|A financial summary and reconciliation of adjusted earnings to earnings attributable to equity owners is provided below:|
|For the Three Months
Ended December 31
|For the Year
Ended December 31
|($ Millions except share data)||2015||2014||2015||2014|
|Adjusted earnings (1)||153||182||483||575|
|Gain on sales of operations and revaluation of joint venture (2)||27||-||27||138|
|Restructuring costs (2)||(73||)||-||(82||)||-|
|Rate-regulated activities (2)||25||(27||)||(25||)||(24||)|
|Dividends on equity preferred shares||17||13||56||50|
|Earnings attributable to equity owners||46||151||352||711|
|Weighted average shares outstanding (millions of shares)||265.8||263.0||264.7||262.0|
|(1)||Adjusted earnings are earnings attributable to equity owners after adjusting for the timing of revenues and expenses associated with rate-regulated activities and dividends on equity preferred shares of Canadian Utilities. Adjusted earnings also exclude one-time gains and losses, significant impairments and items that are not in the normal course of business or a result of day-to-day operations. Adjusted earnings present earnings on the same basis as was used prior to adopting International Financial Reporting Standards (IFRS) - that basis being the U.S. accounting principles for rate-regulated entities - and they are a key measure used to assess segment performance, to reflect the economics of rate regulation and to facilitate comparability of Canadian Utilities' earnings with other Canadian rate-regulated companies.|
|(2)||Refer to Note 5 of the consolidated financial statements for descriptions of these items.|
Earnings attributable to equity owners were $352 million in 2015 compared to $711 million in the prior year. 2015 earnings attributable to equity owners have been adjusted for:
This news release should be used as a preparation for reading the full disclosure documents. Canadian Utilities' consolidated financial statements and management's discussion and analysis for the year ended December 31, 2015, will be available on the Canadian Utilities website (www.canadianutilities.com), via SEDAR (www.sedar.com) or can be requested from the Company.
With nearly 5,500 employees and assets of approximately $18 billion, Canadian Utilities Limited is an ATCO Company. ATCO is a diversified global corporation delivering service excellence and innovative business solutions in Structures & Logistics (workforce housing, innovative modular facilities, construction, site support services, and logistics and operations management); Electricity (power generation, distributed generation, and electricity distribution, transmission and infrastructure development); Pipelines & Liquids (natural gas transmission, distribution and infrastructure development, natural gas liquids storage and processing, and industrial water solutions); and Retail Energy (electricity and natural gas retail sales). More information can be found at www.canadianutilities.com.
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 Company's actual results could differ materially from those anticipated in this forward-looking information as a result of regulatory decisions, competitive factors in the industries in which the Company operates, prevailing economic conditions, and other factors, many of which are beyond the control of the Company.
The Company 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 Company's expectations as of the date hereof, and is subject to change after such date. The Company 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.
Media & Investor Inquiries:
B.R. (Brian) Bale
Senior Vice President & Chief Financial Officer