ENMAX Corporation (ENMAX) today announced its
financial results for the three months ending on June 30, 2014. Net earnings from continuing operations for the second quarter were $63.6 million, up from $8.2 million in the second quarter of 2013. The increase was primarily due to higher electricity margins with fewer plant outages, and the recovery of prior year's costs related to the transmission business. Net earnings were down in Q2 2014 versus 2013 as a result of a gain on the sale of ENMAX Envision Inc. in Q2 2013.
"During the second quarter we executed agreements that will significantly strengthen our generation portfolio to meet the growing electricity needs of Alberta," said Gianna Manes, ENMAX President and CEO. "The announced acquisition of the Cavalier facility and a 50 per cent interest in the Balzac facility will add 170 megawatts (MW) of natural gas-fuelled electricity generation to our fleet. In addition, we have finalized the joint venture with Capital Power to develop, construct, and own the proposed 1,050 MW natural gas-fuelled Genesee 4 and 5 facility." Construction of the 800 MW Shepard Energy Centre also continues safely on time and on budget with an expected operational date of early 2015.
(millions of dollars, except where otherwise noted)
Three months ended June 30
Six months ended June 30
Net earnings from continuing operations
Return on assets (1)
Return on equity (2)
Total shareholder's equity
(1) Return on assets 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. 2013 ROA includes the $175.9 million gain on sale of Envision recorded in Q2 2013.
(2) Return on equity 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. 2013 ROE includes the $175.9 million gain on sale of Envision recorded in Q2 2013.
ENMAX Corporation, 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 Second 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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