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EPCOR Announces First Quarter Results

May 04, 2017
Published In: Corporate Information

"EPCOR's financial performance was in line with our expectations for the quarter. There were a number of events in the first quarter of 2016 that resulted in higher net income and did not repeat this year," said Stuart Lee, EPCOR President & CEO.

"From an operational perspective, our facilities and infrastructure continued to run safely and reliably. We look forward to the transfer of the City of Edmonton's Drainage utility to EPCOR and its successful integration into our water utility operations."

Highlights of EPCOR's financial performance are as follows:

  • Net income was $38 million for the three months ended March 31, 2017, compared with net income of $78 million for the corresponding period in the previous year. Net income was lower for the three months ended March 31, 2017, primarily due to lower income from core operations, as described below, unfavorable fair value adjustments related to financial electricity purchase contracts and no dividend income due to the sale of Capital Power shares. Partially offsetting these decreases was the recognition of the fair value gain resulting from the final sale of Capital Power shares and an unfavorable fair value adjustment related to interest swaps in the first quarter of 2016.

  • Income from core operations was $38 million for the three months ended March 31, 2017, compared with $75 million for the corresponding period in the previous year. Income from core operations was lower for the three months ended March 31, 2017, primarily due to lower net system access collections, lower gains as a result of sales of surplus land in the first quarter of 2016, lower income related to industrial service contracts and lower Energy Price Setting Plan margins. Partially offsetting these decreases were higher distribution, transmission and water customer rates.

  • Net cash flows from operating activities was $82 million for the three months ended March 31, 2017, compared with $136 million for the corresponding period in the previous year. The decrease reflects reduced income from operations and lower funds from the change in non-cash operating working capital.

  • Investment in capital projects was $98 million for the three months ended March 31, 2017, compared with $88 million for the corresponding period in the previous year. The year-to-date increase of $10 million was primarily due to increased spending in the Distribution and Transmission segment on the advanced meter infrastructure project.

The management's discussion and analysis (MD&A) of the quarterly results and the unaudited condensed consolidated interim financial statements are available on EPCOR's website and SEDAR.

EPCOR's wholly owned subsidiaries build, own and operate electrical transmission and distribution networks, water and wastewater treatment facilities and infrastructure in Canada and the United States. The Company's subsidiaries also provide electricity, natural gas and water products and services to residential and commercial customers. EPCOR, headquartered in Edmonton, is an Alberta Top 70 employer.

Contact

For more information, please contact:

Tim​ LeRiche
Media Relations
Phone: (780) 969-8238


Claudio Pucc​i
Investor/Corporate Relations
Phone: (780) 969-8245
Toll Free: 1-877-969-8280

 

 

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