Emera sees opportunity in U.S. Northeast; enjoys Q1 profit boost

<p>HALIFAX – Emera Inc. (TSX:EMA) expects more opportunities in the northeastern United States after having negotiated an agreement with other power producers to jointly build and own wind projects in New England.</p> <p>”By having a larger (U.S.) Northeast presence, we see many integration opportunities through transmission development and utilities services,” chief executive Chris Huskilson said Tuesday.</p> <p>Emera announced a deal on the weekend with Algonquin Power and Utilities Corp. (TSX:AQN) of Oakville, Ont., and Boston’s First Wind Holdings to form an operating company to pursue wind power projects.</p> <p>On Tuesday, Emera reported its net profit soared in the first quarter to $123.6 million, but mainly from a one-time accounting gain on two transactions.</p> <p>The Halifax-based owner of Nova Scotia Power and other utilities said earnings per share were $1.06 for the three months ended March 31. That was up from a profit of $77.8 million or 68 cents for the same 2010 period.</p> <p>The company said the latest quarter included $40.8 million of accounting gains on two transactions. Excluding that gain, Emera had earnings of $82.8 million or 71 cents per share.</p> <p>Operating revenues jumped to $554.6 million from $438.5 million.</p> <p>”All in all this has been a great quarter,” Huskilson told analysts on a conference call to discuss the first-quarter results.</p> <p>Huskilson also said work is continuing on the Maritime link project that will bring energy from Lower Churchill Falls to Nova Scotia and plans are being set for this summer’s work program on the project.</p> <p>”This is one of several initiatives where we are seeing increased co-operation on energy issues among utilities and governments in Atlantic Canada,” he said.</p> <p>Under the term sheet announced last November for the Lower Churchill power project, Newfoundland and Labrador’s Crown utility, Nalcor Energy, would spend $2.9 billion to build a power generating station at Muskrat Falls capable of producing 824 megawatts of electricity.</p> <p>A $2.1-billion transmission link would also be built from Labrador to Newfoundland, with Halifax-based Emera Inc. providing $600 million in funding.</p> <p>Emera would spend another $1.2 billion on a 180 kilometre subsea link from Newfoundland to Cape Breton.</p> <p>Nova Scotia would receive 170 megawatts of energy a year – about 10 per cent of the province’s total power needs – for 35 years. Emera would also have an option on an additional 330 megawatts that could go to other provinces and New England.</p> <p>In breaking down its operations, Emera said:</p> <p>- Nova Scotia Power Inc.’s net earnings fell slightly to $63.6 million from $65.2 million;</p> <p> – Maine Utility operations contributed $9.4 million to the bottom line in the latest quarter, up from $5.6 million last year;</p> <p>- Caribbean Utility Operations contributed $29.6 million, compared with $200,000, mainly from a $28-million accounting gain on the acquisition of Light & Power Holdings Ltd. in January.</p> <p>- Pipelines contributed $6.8 million in net profits, down from $8.3 million.</p> <p>Meanwhile, services, renewables and other investments contributed $20.6 million, compared with a loss of $600,000 in last year’s quarter. That included a $12.8 million after-tax gain on the exchange of Algonquin Power & Utilities Corp. subscription receipts for Algonquin shares.</p> <p>Emera is an energy and services company with $6.5 billion in assets and 2010 revenues of $1.6 billion. The company operates throughout northeastern North America, in three Caribbean countries and in California.</p> <p>In Tuesday trading on the TSX, Emera shares closed down six cents at $31.40.</p>