Valener announces its financial results for the first quarter of fiscal 2013
Valener announces its financial results for the first quarter of fiscal 2013
$4.1 MILLION INCREASE IN RECURRING INCOME STEMMING FROM THE EXPECTED EARNINGS FOLLOWING GAZ MÉTRO'S ACQUISITION OF CVPS
Highlights:
Valener
-- $14.3 million in recurring net income, up $4.1 million; and
-- $9.4 million in dividends paid to common shareholders, i.e.,
$0.25 per common share, and $1.6 million to preferred
shareholders.
Gaz Métro
-- $67.8 million in recurring net income, up $12.5 million;
-- $6.3 million increase in the net income generated by energy
distribution in Vermont following the acquisition of Central
Vermont Public Service;
-- 5.9% increase in natural gas deliveries to the industrial
market in Quebec; and
-- $14.7 million net gain on the disposal of Gaz Métro's interest
in HydroSolution.
Seigneurie de Beaupré wind power projects
-- Decree issued by the Government of Quebec authorizing the
68-megawatt Seigneurie de Beaupré wind power project 4.
MONTREAL, Feb. 11, 2013 /CNW Telbec/ - Valener Inc. (Valener) (TSX: VNR), the
public investment vehicle in Gaz Métro Limited Partnership (Gaz Métro), is
today announcing its financial results for the first quarter ended December
31, 2012.
Valener's results
Excluding non-recurring items, Valener's net income attributable to common
shareholders totalled $14.3 million ($0.38 per common share) for the first
quarter of fiscal 2013 compared to $10.2 million ($0.27 per common share) for
the year-earlier first quarter, a $4.1 million increase ($0.11 per common
share) owing primarily to the additional earnings that Gaz Métro realized
from energy distribution activities in Vermont given the June 2012
acquisition of Central Vermont Public Service Corporation (CVPS) and to higher
income from natural gas distribution in Quebec.
"Valener's first quarter results reflect the financial and commercial strategy
of Gaz Métro, Valener's primary investment. Gaz Métro continues to benefit
from the favourable competitive position of natural gas, leveraging it to
deploy its strategy and development initiatives. Valener's shareholders are
now reaping the rewards of these initiatives," said Pierre Monahan, Chairman
of Valener's board of directors.
A profitable investment strategy
"In acquiring CVPS and merging it with Green Mountain Power, Gaz Métro
remained consistent with its strategy of focusing on energy distribution,
transportation and production in Quebec and Vermont. This transaction is
paying off, reflecting positively on Gaz Métro's and Valener's results for
the first quarter of fiscal 2013. Also, in line with this vision, during the
quarter, Gaz Métro disposed of its interest in HydroSolution, which operates
a major rental fleet of electric hot water heaters, for $44.4 million. The
transaction generated a net gain on disposal of $14.7 million and freed up
cash flow to be allocated to projects in line with Gaz Métro's prudent and
targeted growth strategy" said Sophie Brochu, President and Chief Executive
Officer of Gaz Métro.
A step forward in the development of the Seigneurie de Beaupré wind power
projects
Valener and Gaz Métro indirectly own interests of 24.5% and 25.5%,
respectively, in the Seigneurie de Beaupré wind power projects developed
jointly with Boralex Inc. (the "consortium").
On January 22, 2013, a decree was issued by the Government of Quebec, on the
recommendation of the Minister of Sustainable Development, Environment,
Wildlife and Parks (Ministre du Développement durable, de l'Environnement, de
la Faune et des Parcs), authorizing the wind power project 4. Having
successfully completed the key environmental approvals stage, the consortium
can now move on to the next steps of, notably, applying for construction
permits, signing final agreements with Enercon, the turbine and maintenance
service supplier with world-renowned expertise, and arranging the financing.
"Obtaining the environmental approval for Seigneurie de Beaupré wind power
project 4 is another step in asserting our renewable energy presence and thus
helping to shape Quebec's energy profile of tomorrow. This approval is also
testament to the quality of the projects that the consortium is initiating to
help develop Quebec's renewable energy sector," said Ms. Brochu.
Wind power project 4 represents a total investment of approximately $190
million (including financing costs) for a total installed capacity of 68
megawatts. Start-up is scheduled for December 2014.
The construction work on wind power projects 2 and 3 with an installed
capacity of 272 megawatts ceased for the winter on December 21, 2012 and is
expected to resume in spring 2013. These projects, which are scheduled for
start-up in December 2013, represent a total investment of approximately $750
million (including financing costs).
Declaration of quarterly dividends
Valener's board of directors declared a quarterly dividend of $0.25 per common
share for the quarter ending March 31, 2013, payable on April 15, 2013, to
shareholders of record at the close of business on March 28, 2013. Valener
expects to maintain the dividend at $0.25 per common share for each quarter of
fiscal 2013.
Under Valener's dividend reinvestment plan, the board of directors approved
the reinvestment of dividends into additional common shares, for the dividend
payable on April 15, 2013, by way of an issuance of new common shares of
Valener, at a 5% discount compared to the weighted average price for the five
trading days immediately preceding the dividend payment date.
The board of directors also declared a quarterly dividend of $0.271875 per
Series A preferred share for the period of January 16, 2013 to April 15, 2013,
payable on April 15, 2013 to the shareholders of record at the close of
business on April 9, 2013.
Consolidated net income attributable to the common shareholders, excluding the
share in the nonrecurring items of Gaz Métro, net of income taxes
3 months ended December 31
(in millions of dollars, unless otherwise
indicated) 2012 2011
Consolidated net income 18.6 10.1
Share in the non-recurring items of Gaz
Métro (4.3) 0.1
Income taxes on the share in the
non-recurring items of Gaz Métro 1.1 -
Consolidated net income, excluding the share
in the non-recurring items
of Gaz Métro, net of income taxes 15.4 10.2
Less: Cumulative dividends on Series A
preferred shares 1.1 -
Consolidated net income attributable to the
common shareholders,
excluding the share in the non-recurring
items of Gaz Métro, net of
income taxes ((1)) 14.3 10.2
Weighted average number of common shares
outstanding (in millions of
common shares) 37.6 37.4
Consolidated net income attributable to the
common shareholders,
excluding the share in the non-recurring
items of Gaz Métro, net of
income taxes, per common share (in $) ((1)) 0.38 0.27
((1)) These measures are financial measures that are not defined in
Canadian generally accepted accounting principles
(GAAP). For additional information, refer to the Non-GAAP
Financial Measures heading in Valener's MD&A for the
quarter ended December 31, 2012.
Gaz Métro's results
First-quarter net income attributable to the Partners of Gaz Métro, excluding
non-recurring items, totalled $67.8 million, a $12.5 million year-over-year
increase that was essentially due to a $6.3 million increase in net income
from energy distribution activities in Vermont given the additional earnings,
net of financing costs, from the June 2012 CVPS acquisition, and to a
$5.8 million increase in net income from the natural gas distribution
activity in Quebec, as explained below.
Quebec natural gas distribution (Gaz Métro-QDA)
For the first quarter of fiscal 2013, Gaz Métro-QDA's normalized natural gas
deliveries totalled 1,582 million cubic metres, up 2.9% from 1,538 million
cubic metres in the first quarter of last year.
In the industrial market, first-quarter volumes rose 5.9% year over year, due
to greater consumption, particularly in the pulp and paper and metallurgy
sectors.
Normalized deliveries to the residential and commercial markets declined 0.6%
and 1.5%, respectively, from the first quarter of fiscal 2012, essentially due
to energy conservation measures undertaken by Gaz Métro-QDA's customers,
partly offset by new sales.
For the first quarter of fiscal 2013, Gaz Métro-QDA's net income attributable
to the Partners of Gaz Métro totalled $49.5 million, a $5.8 million
year-over-year increase that was essentially due to:
-- a timing difference between the revenue recognition profile of
the distribution service, which follows the customers'
consumption profile, and that of costs, resulting in a $2.9
million increase in net income. However, this increase is
expected to reverse in the next quarters of the current fiscal
year;
-- a favourable impact of closer-to-normal temperatures in the
first quarter of fiscal 2013, whereas temperatures were
considerably warmer-than-normal in the first quarter of
fiscal 2012. These weather conditions, which were unique to the
first quarter of fiscal 2012, had adversely affected the net
income of this period because, while the normalization
mechanism had been applied, it did not fully eliminate the
impact on revenues;
-- the impact of higher load-balancing and transportation costs in
the first quarter of fiscal 2012 resulting from temperatures,
as explained above, and from the higher average costs for
load-balancing tools resulting from changing demand, in the
first quarter of fiscal 2012, of customers in the industrial
market, both of which adversely affected the net income for the
period; and
-- a $1.2 million increase in the gross margin of the distribution
service due to higher deliveries to the industrial market
compared to the 2013 rate case, partly mitigated by lower
deliveries of short-term interruptible service sales;
mitigated by:
-- the unfavourable impact of a decrease in the rate of return on
deemed common equity and in revenues related to the Global
Energy Efficiency Plan (GEEP) performance incentive.
Anticipated impacts of the 2013 rate case proposed to the Régie de l'énergie
("Régie")
In Phase II of its 2013 rate case, filed in December 2012, Gaz Métro-QDA
proposed that the Régie suspend application of the automatic adjustment
formula on the established rate of return on deemed common equity. Gaz
Métro-QDA submitted this proposal, because, in its view, the rate obtained
using this automatic adjustment formula is not reasonable for fiscal 2013, in
particular due to the low long-term interest rates prevailing in the market.
In a January 14, 2013 procedural decision, the Régie estimated that it might
be appropriate, for fiscal 2013, to suspend application of the automatic
adjustment formula and maintain the 8.90% rate of return on deemed common
equity (excluding productivity gains) set in 2012. While a hearing is
scheduled for February 2013 to hear Gaz Métro-QDA and intervenors on this
matter, Gaz Métro-QDA has recognized its fiscal 2013 first quarter revenues
based on an 8.90% rate of return on deemed common equity, i.e., the rate of
return mentioned by the Régie on January 14, 2013. Gaz Métro-QDA's revenues
for the first quarter of fiscal 2013 also reflect the cost-of-service
parameters included in the 2013 rate case.
The rate case proposed to the Régie for fiscal 2013, based on an 8.90% rate
of return, is expected to translate into a $6.6 million decrease in net income
for the 12 months of fiscal 2013 compared to the net income realized in fiscal
2012. This decrease would primarily stem from the following factors:
-- a lower rate of return on the deemed common equity proposed in
2013 compared to that of 9.69% (including productivity gains)
authorized in 2012;
-- a $4.0 million decrease in revenues related to the GEEP
performance incentive; and
-- the impact of having no share in overearnings anticipated in
the 2013 rate case, whereas a $1.0 million share had been
realized in fiscal 2012;
partially offset by:
-- an increase in the average rate base combined with an increase
in investments not included in the rate base.
A quarterly breakdown of how the 2013 rate case proposed to the Régie impacts
net income attributable to the Partners of Gaz Métro shows higher net income
attributable to the Partners of Gaz Métro in the first two quarters of fiscal
2013 and lower net income attributable to the Partners of Gaz Métro in the
last two quarters compared to the same periods in fiscal 2012.
Incentive mechanism
The Gaz Métro-QDA incentive mechanism, in effect since October 1, 2007,
expired on September 30, 2012. On September 2, 2011, Gaz Métro-QDA filed an
incentive mechanism proposal with the Régie that was supported by a majority
of the intervenors. On June 28, 2012, the Régie issued a decision denying the
mechanism proposed by the working group and asked Gaz Métro-QDA to file a
new incentive mechanism proposal as part of a more traditional framework. On
November 30, 2012, Gaz Métro-QDA filed a new incentive mechanism proposal for
distribution activities to be applicable for a five-year period as of fiscal
2014. Hearings on this proposal will be held in the coming months.
Service to the Côte-Nord region
The Côte-Nord region is the last of Quebec's major industrial regions that
does not yet benefit from the environmental and economic advantages of natural
gas. The project to serve the Côte-Nord region, which involves laying down
450 km of pipeline to connect Saguenay to Sept-Îles, has a preliminary
estimated cost of $750 million. To make a fully informed decision on a project
of such magnitude, the Government of Quebec and Gaz Métro are exercising due
diligence through three comprehensive feasibility studies, the conclusions of
which, initially expected before the end of the 2012 calendar year, are now
expected by March 31, 2013. If the conclusions are positive, Gaz Métro-QDA
will continue the regulatory and environmental approval process in 2013. If
all the necessary approvals are obtained, the preparatory work and
construction of Gaz Métro-QDA's Côte-Nord service could begin in 2015 with a
view to start-up in 2016.
Energy Distribution in Vermont
The first-quarter net income attributable to the Partners of Gaz Métro
generated by natural gas and electricity distribution activities in Vermont
increased $6.3 million from the first quarter of fiscal 2012.
This increase was mainly due to:
-- an increase in the net income of Green Mountain Power
Corporation (GMP) given the June 2012 CVPS acquisition,
mitigated by a $1.2 million unfavourable impact from costs
incurred in the wake of Hurricane Sandy, net of the portion
that can be recovered in future rates through the profit and
loss sharing mechanism; and
-- a $5.5 million increase in the shares in the earnings of
entities subject to significant influence following the
acquisition of CVPS, which also owned an interest in these
entities subject to significant influence;
mitigated by:
-- a $3.8 million increase in financing costs resulting mainly
from the additional financing assumed for the CVPS acquisition.
The system development project of Vermont Gas Systems, Inc. (VGS)
On October 17, 2012, VGS announced an agreement with International Paper
Company under which one of that company's mills will purchase, under a
long-term contract, natural gas from VGS starting at the end of the 2015
calendar year. The required system extension would be an expansion of the
planned VGS system extension into Addison County in order to serve the
communities of Vergennes and Middlebury.
In fiscal 2013, VGS plans on seeking the regulatory approvals needed for the
construction of the additional facilities required to deliver natural gas to
International Paper Company's mill. On December 20, 2012, VGS filed for the
regulatory approval of the extension into Addison County. A decision from the
VPSB is expected by the end of fiscal 2013 such that construction may commence
in 2014. If approved, these system extensions could give rise to an investment
of approximately US$100 million.
Kingdom Community Wind (KCW) project
At the end of fiscal 2011, GMP began construction of the KCW project, a
63-megawatt wind power project located in Lowell, Vermont. This US$150
million, 21-turbine wind power project can supply power to more than 24,000
households consisting of GMP's customers and members of the Vermont Electric
Cooperative, Inc. Construction of the wind farm has been completed, and the 21
turbines have been in service since November 20, 2012.
Natural Gas Transportation
The segment's first-quarter net income attributable to the Partners of Gaz
Métro was up $0.3 million compared to the first quarter of fiscal 2012,
mainly due to a $1.5 million increase in the share of the income before income
taxes of Portland Natural Gas Transmission System (PNGTS), partly as a result
of the fact that less natural gas was available on other systems, thus helping
to increase its short-term sales, mitigated by a $1.1 million income tax
expense allocation from Gaz Métro's wholly owned subsidiary 9265-0860 Québec
Inc. to Trans Québec & Maritimes Pipeline (TQM).
9265-0860 Québec Inc. was created in 2012 to offset the effects of a change
in fiscal year-end imposed by the Income Tax Act (Canada) applicable to
multi-tiered partnership structures. Since October 1, 2012, the income tax
expense related to TQM has been recognized by Gaz Métro rather than by its
Partners, Valener and Gaz Métro inc. (GMi).
Energy Production
This new segment consists of non-regulated energy production activities
related to the wind farm construction projects located on the private lands of
Seigneurie de Beaupré. The wind power projects are under construction and
therefore have not yet begun to generate revenue.
Energy Services, Storage and Other
This segment now includes the natural gas storage activities that had
previously been presented in a separate segment as at September 30, 2012.
Aside from the $14.7 million net gain realized on the disposal of the interest
in HydroSolution, the segment's net income attributable to the Partners of Gaz
Métro totalled $2.6 million in the first quarter of fiscal 2013, a similar
amount to that of the same period in fiscal 2012.
This segment includes the activities of Gaz Métro Transport Solutions, L.P.
(Transport Solutions), an indirect subsidiary of Gaz Métro created to develop
natural gas for use as fuel by the transportation industry.
Natural gas as transportation fuel
Since July 2011, Transport Solutions has been installing the facilities needed
to supply liquefied natural gas (LNG) to 180 freight trucks under an agreement
entered into with Transport Robert 1973 Ltée (Robert Transport). For
Transport Solutions, the project represents an investment of approximately $5
million. Two private stations set up at Robert Transport's terminals in
Boucherville and Mississauga are currently in service. Pending completion of a
permanent public station in Lévis, in October 2012 Transport Solutions
installed a temporary mobile fuelling station on the Robert Transport property
in Lévis, which can also service other carriers. For fiscal 2013, there are
also plans for building two other permanent public stations in
Rivière-du-Loup and Cornwall. While waiting for these permanent public
stations to be built and in order to accelerate the development of the public
supply network, two other mobile fuelling stations have been ordered. These
mobile stations may be deployed in different locations pending the
construction of permanent stations.
Gaz Métro's segment results - Consolidated net income attributable to the
Partners of Gaz Métro
For the quarters ended December 31 ((1))
(in millions of dollars) 2012 2011 Change
Energy Distribution
Gaz Métro-QDA 49.5 43.7 5.8
VGS and GMP 17.6 7.5 10.1
Financing costs of investments in this
segment ((2)) (4.9) (1.1) (3.8)
62.2 50.1 12.1
Natural Gas Transportation
TQM, PNGTS and Champion Pipe Line Corporation
Limited 4.8 5.1 (0.3)
Financing costs of investments in this
segment ((2)) (0.4) (1.0) 0.6
4.4 4.1 0.3
Energy Production ((3))
Gaz Métro Éole inc. and Gaz Métro Éole 4 inc. (0.1) (0.6) 0.5
Financing costs of investments in this
segment ((2)) - - -
(0.1) (0.6) 0.5
Energy Services, Storage and Other ((3))
Energy and storage 17.7 3.1 14.6
Financing costs of investments in this
segment ((2)) (0.4) (0.8) 0.4
Net gain on the disposal of the interest in
HydroSolution (14.7) - (14.7)
2.6 2.3 0.3
Corporate Affairs
Corporate Affairs (1.3) (1.1) (0.2)
Costs related to the CVPS acquisition - 0.5 (0.5)
(1.3) (0.6) (0.7)
Consolidated net income attributable to the
Partners of
Gaz Métro, excluding non-recurring items 67.8 55.3 12.5
Non-recurring items 14.7 (0.5) 15.2
Consolidated net income attributable to the
Partners of Gaz Métro 82.5 54.8 27.7
((1)) Seasonal temperature fluctuations influence the energy
consumption levels of customers and in turn have an influence
on Gaz Métro's interim consolidated financial results.
Historically, Gaz Métro's revenues and profitability are higher
in the
first two quarters of a fiscal year than in the last two
quarters.
((2)) These costs consist of the interest on the long-term debt
incurred by the Partnership to finance investments in the
subsidiaries, joint ventures and entities subject to significant
influence of each segment.
((3)) During the first quarter of fiscal 2013, Gaz Métro modified its
financial reporting structure for segment disclosures given
the development of important wind power projects and the sale of
certain companies. Created for this new structure was the Energy
Production segment, which had previously been included in the
Corporate Affairs and Other segment. Gaz Métro also
combined the Storage segment with the Energy Services and Other
segment to create a single segment named Energy
Services, Storage and Other. Last year's first-quarter figures
have been reclassified to present financial information that
reflects the new business segments.
Conference call
Valener will hold a conference call with financial analysts today, Monday,
February 11, 2013 at 11 am (Eastern Time) to discuss its results and those of
Gaz Métro for the first quarter ended December 31, 2012.
Pursuant to an administration and management support agreement entered into
between Valener and Gaz Métro on September 30, 2010, Gaz Métro acts as
manager of Valener. As such, Pierre Despars, Executive Vice-President,
Corporate Affairs and Chief Financial Officer of Gaz Métro inc., the General
Partner of Gaz Métro, will be the speaker, and a question period will follow.
The call will be broadcast live and is accessible by dialling 647-427-7450 or
toll-free 1-888-231-8191. It will also be available via webcast on Valener's
website (www.valener.com) in the Events & Presentations page of the Investors
section.
The media and other interested parties are invited to listen in. After the
conference call, the speaker will be available for media interviews and
questions.
For 30 days afterward, a rebroadcast will be accessible by dialling
416-849-0833 or toll-free 1-855-859-2056 (access code: 88001458). For 90 days
afterward, the call can be played back on the above-mentioned website.
Annual shareholders' meeting
Valener will hold its annual shareholders' meeting on March 27, 2013 at 10 am
(Eastern Time) at the Palais des congrès de Montréal in Montréal, Quebec.
Overview of Valener
Valener owns an economic interest of approximately 29% in Gaz Métro. Valener
therefore has a stake in the energy industry and benefits from Gaz Métro's
diversified profile, both in terms of geography and business segment. Valener
also owns a 24.5% indirect interest in the wind power projects developed with
Gaz Métro and Boralex Inc. on the private lands of Séminaire de Québec.
Valener's common shares and preferred shares are listed on the Toronto Stock
Exchange under the "VNR" trading symbol for common shares and under the
"VNR.PR.A" trading symbol for Series A preferred shares. www.valener.com
Overview of Gaz Métro
With more than $5 billion in assets, Gaz Métro is a leading energy provider.
It is the largest natural gas distribution company in Quebec, where its more
than 10,000-km underground network of pipelines serves 300 municipalities and
more than 185,000 customers. Gaz Métro is also present in Vermont, producing
electricity and distributing electricity and natural gas to meet the needs of
some 300,000 customers. Gaz Métro is actively involved in the development of
innovative, promising energy projects such as the production of wind power,
the use of natural gas as a transportation fuel, and the development of
biomethane. Gaz Métro is committed to ensuring the satisfaction of its
customers, providing support to businesses, local organizations, families and
communities, and meeting the expectations of its Partners (Gaz Métro inc.
and Valener) and employees. www.gazmetro.com
Cautionary note regarding forward-looking statements
This press release may contain forward-looking information within the meaning
of applicable securities laws. Such forward-looking information reflects the
intentions, plans, expectations and opinions of the management of GMi, in its
capacity as General Partner of Gaz Métro, and acting as manager of Valener
(the management of the manager) and is based on information currently
available to the management of the manager and assumptions about future
events. Forward-looking statements can often be identified by words such as
"plans," "expects," "estimates," "forecasts," "intends," "anticipates" or
"believes" or similar expressions, including the negative and conjugated forms
of these words. Forward-looking statements involve known and unknown risks and
uncertainties and other factors beyond the control of the management of the
manager. A number of factors could cause the actual results of Valener or of
Gaz Métro to differ significantly from current expectations, as they are
described in the forward-looking statements, including but not limited to the
general nature of the aforementioned, terms of decisions rendered by
regulatory agencies, the competitiveness of natural gas in relation to other
energy sources, the reliability of natural gas and electricity supply, the
integrity of the natural gas and electricity distribution systems, the
progress of wind power projects and other development projects, the ability to
complete attractive acquisitions and the related financing and integration
aspects, the ability to secure future financing, general economic conditions,
exchange rate and interest rate fluctuations, weather conditions and other
factors described in the "Risk Factors Relating to Valener" and the "Risk
Factors Relating to Gaz Métro" sections of Valener's MD&A for the year ended
September 30, 2012 and in Gaz Métro's and Valener's disclosure filings.
Although the forward-looking statements contained herein are based on what the
management of the manager believes to be reasonable assumptions, in
particular, assumptions to the effect that no unforeseen changes in the
legislative and regulatory framework of energy markets in Quebec and in the
New England states will occur; that the applications filed with the Régie, in
particular the rate applications and the authorized return on deemed equity
applications will be granted as filed; that natural gas prices will remain
competitive; and that no significant event occurring outside the ordinary
course of business, such as a natural disaster or other calamity, will occur;
that Gaz Métro will be able to continue distributing substantially all of its
net income (excluding non-recurring items); that the wind power projects in
which Valener and Gaz Métro own indirect interests will be completed on
schedule and as per specification; that GMP will be able to quickly and
effectively integrate CVPS's operations; and that the conclusions of studies
on the project to serve the Côte-Nord region will be positive and that the
regulatory approvals will be obtained; in addition to the other assumptions
described in the Valener and Gaz Métro MD&As for the quarter ended
December 31, 2012, the management of the manager cannot assure investors that
actual results will be consistent with these forward-looking statements. These
forward-looking statements are made as of this date, and the management of the
manager assumes no obligation to update or revise them to reflect new events
or circumstances, except as required pursuant to applicable securities laws.
Readers are cautioned to not place undue reliance on these forward-looking
statements.
HIGHLIGHTS
VALENER INC. 3 months ended December 31
(in millions of dollars, 2012 2011
except for share data, which
is in dollars, and unless
otherwise indicated)
(unaudited) (unaudited)
CONSOLIDATED INCOME AND CASH
FLOWS
Share in the net income of $ 23.9 $ 15.9
Gaz Métro
Net income attributable to $ 17.5 $ 10.1
the common shareholders
Basic and diluted net income $ 0.47 $ 0.27
per common share
Cash flows related to $ 10.5 $ (4.3)
operating activities
Dividends declared per common $ 0.25 $ 0.25
share
Weighted average number of 37.6 37.4
common shares outstanding (in
millions)
OTHER INFORMATION
Market prices for common
shares on the Toronto Stock
Exchange (TSX):
High $ 16.27 $ 16.29
Low $ 15.68 $ 13.55
Close $ 16.05 $ 15.98
CONSOLIDATED BALANCE SHEETS
December 31, September 30,
2012 2012
(unaudited) (audited)
Total assets $ 779.3 $ 765.5
Total debt $ 52.0 $ 51.4
Shareholders' equity $ 688.4 $ 675.7
GAZ MÉTRO LIMITED PARTNERSHIP 3 months ended December 31
(in millions of dollars, 2012 2011
except for unit data, which
is in dollars, and unless
otherwise indicated)
(unaudited) (unaudited)
CONSOLIDATED INCOME AND CASH
FLOWS
Revenues $ 622.8 $ 536.6
Gross margin $ 260.6 $ 202.8
Net income attributable to $ 82.5 $ 54.8
the Partners of Gaz Métro
Cash flows related to $ 66.9 $ 80.2
operating activities
Purchases of property, plant $ 114.6 $ 118.0
and equipment
Change in deferred charges $ 50.9 $ 42.4
and credits
Basic and diluted net income $ 0.56 $ 0.43
per unit attributable to the
partners of Gaz Métro
Distributions declared per $ 0.28 $ 0.28
unit to the Partners of
Gaz Métro
Weighted average number of 148.7 126.3
units outstanding (in
millions)
OTHER INFORMATION
Authorized rate of return on
deemed common equity
(Gaz Métro's natural gas
distribution activity in
Quebec) ((1) (3)) 8.90% 9.69%
Credit ratings
First mortgage bonds A/A
(Standard and Poor's (S&P)
/ DBRS Limited (DBRS)) (
(2)) A/A
Commercial paper (S&P/DBRS)
((2)) A-1(low)/R-1(low) A-1(low)/R-1(low)
CONSOLIDATED BALANCE SHEETS
December 31, September 30,
2012 2012
(unaudited) (audited)
Total assets $ 5,307.8 $ 5,118.0
Total debt $ 2,599.8 $ 2,474.1
Partners' equity attributable
to the Partners of Gaz Métro $ 1,352.2 $ 1,303.3
Partners' equity per unit
attributable to the Partners
of Gaz Métro $ 9.10 $ 8.77
((1)) Including the sharing of productivity gains, if applicable, and
excluding the Global Energy Efficiency Plan incentive.
((2)) Through its General Partner, Gaz Métro inc.
((3)) Pursuant to the Régie's procedural decision of January 14, 2013,
the Régie estimated that it might be appropriate to suspend
application
of the automatic adjustment formula and to maintain the 8.90%
rate of return on deemed common equity (excluding productivity
gains) set
in 2012.
Investors and Analysts Caroline Warren Investor Relations 514-598-3324
Media Marie-Noëlle Cano Media and Public Relations 514-598-3449
SOURCE: VALENER INC.
To view this news release in HTML formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/February2013/11/c4401.html
CO: VALENER INC.
ST: Quebec
NI: OIL UTI ERN DIV CONF
-0- Feb/11/2013 13:04 GMT
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