ENMAX Corporation today announced net earnings of $116.7 million for 2005 and growth in its overall customer base that now totals 457,500.
“We’re pleased with our 2005 financial results, which were 6.6 per cent higher than our normalized 2004 results,” said ENMAX President and CEO Gary Holden. Mr. Holden said the company’s new residential and small business market offer, EasyMax, has been a huge success. “Customers outside of Calgary are particularly interested in our one-year fixed electricity rate, which is significantly less expensive than the regulated rates in those markets,” he added. Calgary customers currently enjoy the lowest electricity rates in the province.
On a normalized basis 2005 net earnings were $7.2 million higher than 2004. The 2004 net earnings totaled $109.5 million excluding a positive adjustment of $42.7 million recorded in the third quarter of 2004—the result of the company refining its estimate of unbilled revenue. No similar adjustment was recorded in 2005.
The growth in ENMAX earnings was primarily the result of customer growth, lower commodity costs from 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 2005 were 9,804 gigawatt hours compared to 9,118 gigawatt hours sold over the same period in 2004, an increase of 7.5 per cent. Natural gas sales effectively doubled in 2005 relative to 2004. ENMAX’s net capital expenditure was $129.0 million in 2005, primarily for expansion of the distribution system. ENMAX paid $50 million in dividends to its shareholder, the City of Calgary, in 2005 and announced it would pay a dividend of $50 million to its shareholder in 2006.
ENMAX Corporation and its predecessors have provided Albertans with safe and reliable electricity for over 100 years. A wholly owned subsidiary of The City of Calgary, ENMAX provides electricity, natural gas, renewable energy and value-added services to more than 457,500 residential, commercial and industrial customers in Alberta through its subsidiary companies. In addition to owning 50 per cent of the McBride Lake Wind Farm – one of Canada’s largest wind power facilities – the company has the first and largest green power marketing program of its kind in Canada. For more information, visit our website at enmax.com.