ENMAX Corporation (ENMAX) today announced its financial results for the three months ending on March 31, 2014. Earnings for the first quarter were $35.9 million, down from $58.3 million in the first quarter of 2013. The decrease was primarily due to a one-time interest charge of $20.7 million associated with the early repayment of long-term debt to lower borrowing costs, resulting in future savings. The decrease in Q1 earnings was also a result of lower realized electricity margins.
"The repayment of this debt at this time is another step to reduce financing and administration costs over the long term," said Gianna Manes, ENMAX President and CEO. "In addition, as anticipated, we experienced lower market electricity prices and a reduction in available generation from power purchase arrangements that we mitigated by continuing to grow our customer base and remaining focused on managing our costs to weather these conditions."
For the three months ended March 31,
(millions of dollars, except where otherwise noted)
(1) Return on assets (ROA) is equal to net earnings before after-tax interest charges for the last 12-month rolling period divided by average total assets (adjusted for capital assets under construction and current liabilities) for the last 12-month rolling period. 2014 ROA includes the $175.9 million gain on sale of Envision recorded in Q2 2013.
(2) Return on equity (ROE) is equal to net earnings for the last 12-month rolling period divided by average Shareholder's equity for the last 12-month rolling period. 2014 ROE includes the $175.9 million gain on sale of Envision recorded in Q2 2013.
ENMAX, through its subsidiaries, makes, moves and sells electricity to residential, small business and large commercial customers and is headquartered in Calgary, Alberta, with offices in Edmonton. ENMAX Power Corporation owns and operates transmission and distribution infrastructure in Calgary and ENMAX Energy Corporation owns diverse electricity generation facilities throughout the province. Since 2007, ENMAX has been named one of Alberta's Top Employers. ENMAX Energy is currently the retailer of choice for both The City of Calgary and The City of Edmonton.
Caution: This news release is intended to be read in conjunction with the
2014 First Quarter Financial Report including Management's Discussion and Analysis and Financial Statements. Commentary provided here may not be a suitable source of information for readers who are not familiar with ENMAX's operations and is not a substitute for reading the Financial Statements and Management's Discussion and Analysis.
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