CALGARY, July 24 /CNW/ - (TSX:FTS) FortisAlberta Inc. today reported net earnings of $15.5 million for the second quarter of 2007 compared to net earnings of $11.3 million for the same quarter in 2006. The $4.2 million increase in earnings was primarily related to growth in energy deliveries, driven by the strong Alberta economy, partially offset by higher operating costs due to inflationary pressures and higher interest expense.
"FortisAlberta has completed extensive capital work in response to robust economic growth while improving operating performance, despite inflationary cost pressures," says Karl Smith, President and CEO, FortisAlberta.
"The Company has completed $122 million in capital work year-to-date," explains Smith. "In 2007, FortisAlberta plans to invest $271 million in capital work to meet customer growth and to enhance capacity and improve reliability of the electricity system."
Revenue was $68.7 million, $10.1 million higher than for the second quarter in 2006. The increase was due to higher distribution revenue associated with customer growth and increased other revenue associated with higher transmission sales volumes.
FortisAlberta remains focused on maintaining the highest standards of employee and public safety. The Company launched a spring public safety campaign, increasing awareness about electrical hazards and delivered safety messages to 3,600 grade five students across its service territory.
For a full copy of FortisAlberta's financial statements, management discussion and analysis and annual information form, please visit www.fortisalberta.com and click on the Investor Centre.
FortisAlberta is an electric distribution company with approximately 437,500 customers and approximately 105,000 kilometres of power lines. It is a wholly owned indirect subsidiary of Fortis Inc., the largest investor-owned distribution utility in Canada, serving almost 2,000,000 gas and electric customers with assets approaching $10 billion of assets. Its regulated holdings include a natural gas utility in British Columbia and electric utilities in five Canadian provinces and three Caribbean countries. Fortis Inc. owns non-regulated hydroelectric generation assets across Canada and in Belize and upper New York State. It also owns hotels and commercial real estate in Canada. Fortis Inc. shares are listed on the Toronto Stock Exchange and trade under the symbol FTS. Additional information can be accessed at www.fortisinc.com or www.sedar.com.
FortisAlberta may include forward-looking statements in this release which reflect management's expectations regarding the Company's future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as "anticipate", "believe", "expects", "intend" and similar expressions have been used to identify the forward-looking statements. These statements reflect management's current beliefs and are based on information currently available to the Company's management. By their very nature, forward-looking statements are based on underlying factors or assumptions which are subject to inherent risks and uncertainties surrounding future expectations generally. Such risk factors or assumptions include, but are not limited to, general economic, market and business conditions, regulatory developments, weather and competition. FortisAlberta cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and undue reliance should not be placed on the forward-looking statements. For additional information with respect to certain of these risks or factors, reference should be made to FortisAlberta continuous disclosure materials filed from time to time with Canadian Securities Regulatory Authorities. FortisAlberta disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.