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Valener announces its financial results for the first quarter of fiscal 2013

Valener announces its financial results for the first quarter of fiscal 2013 
$4.1MILLION INCREASE IN RECURRING INCOME STEMMING FROM THE EXPECTED EARNINGS 
FOLLOWING GAZMÉTRO'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 $14.3million ($0.38 per common share) for the first 
quarter of fiscal 2013 compared to $10.2million ($0.27 per common share) for 
the year-earlier first quarter, a $4.1million increase ($0.11 per common 
share) owing primarily to the additional earnings that GazMétro realized 
from energy distribution activities in Vermont given the June2012 
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 GazMétro, 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, GazMétro 
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, GazMétro 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 $14.7million 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 project4. 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 December2014.

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 $67.8million, a $12.5 million year-over-year 
increase that was essentially due to a $6.3million 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 
$5.8million 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 GazMétro 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 February2013 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 September30, 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 GazMétro-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, GazMétro-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 $6.3million 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 GazMétro

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 11am (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 (GazMétroinc. 
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 
December31, 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.

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CO: VALENER INC.
ST: Quebec
NI: OIL UTI ERN DIV CONF 

-0- Feb/11/2013 13:04 GMT