ENMAX Corporation continued its 2005 pace of business growth, posting a five per cent increase in normalized earnings from operations in the first nine months of 2005 relative to 2004. The Company expects that last month’s announcement of EasyMax, the money saving, no lock-in, penalty free energy contract offered to residential and small commercial customers will significantly add to its customer base and drive continued growth.
“We’re pleased with our quarterly and nine month results. Following this performance with the EasyMax campaign should bolster our future revenues and earnings; so far, we’ve seen a tripling of customer traffic through our website and customer call centre with EasyMax,” said ENMAX President and CEO Gary Holden.
EasyMax customers are attracted to the offer of $100 annual savings, the matching of regulated rates and the high degree of flexibility for customers. “Our research told us that residential customers were unhappy about the way energy was marketed, and disappointed that deregulation had not delivered any tangible benefits for them,” continued Holden. “EasyMax is helping to change that experience for energy market customers in Alberta.”
Net earnings for the first nine months of 2005 were $88.2 million, compared to $83.2 million before adjustments for the same 2004 period. In September 2004, ENMAX refined its process of estimating unbilled revenue which resulted in an adjustment to net earnings in the amount of $42.7 million. No similar adjustment has been recorded in 2005.
The growth in ENMAX earnings was primarily the result of customer growth, lower commodity costs from the Power Purchase Arrangements and lower income tax charges. These gains were partially offset by increased costs associated with a growing customer base and the impact of natural gas price movements.
Electricity sales in the first nine months of the year were at 6,732 gigawatt hours compared to 6,713 gigawatt hours sold over the same period in 2004. Natural gas sales for the first three quarters of the year effectively doubled to 6,022 terajoules, compared to 3,054 terajoules sold in the same period of 2004.
ENMAX’s net capital expenditure was $69.9 million in the first nine months of 2005, primarily for expansion of the distribution system.
ENMAX paid a third quarterly installment of $12.5 million on its 2005 dividend. The corporation announced the 2005 dividend of $50 million in the first quarter.
ENMAX Corporation is celebrating its 100th year of providing Albertans with safe and reliable electricity. A wholly owned subsidiary of The City of Calgary, ENMAX provides electricity, natural gas, renewable energy and value-added services to more than 435,000 residential, commercial and industrial customers in Alberta through its subsidiary companies. In addition, ENMAX owns 50% of Canada’s largest wind farm and has the first and largest green power marketing program of its kind in Canada. For more information, visit our website at enmax.com.
Electricity products and services are competitive. You are free to choose a retailer. Regulated wire services are not dependent upon the retailer you choose. You can find a listing of licensed Alberta retailers at www.customerchoice.gov.ab.ca or call 310-4455 (toll free in Alberta).