"EPCOR recorded strong results in the first quarter of 2018 across all business segments, inclusive of the recently added Drainage operations in the city of Edmonton," said
, EPCOR President & CEO. "We continued to execute on the company's growth strategy with the recently announced Ontario Energy Board decision which will allow EPCOR to proceed in establishing natural gas distribution services for the province's Southern Bruce region."
"Today also marks a major milestone for our organization. After 18 years of outstanding leadership, Hugh J. Bolton retires as Board Chair," noted Mr. Lee. EPCOR has recognized Mr. Bolton's contributions, and particularly the lasting legacy of his commitment to excellence in corporate governance, with the re-naming of its Electricity Operations North Service Centre in Edmonton to the Hugh J. Bolton Service Centre.
"We are excited to welcome Janice G. Rennie as the new Chair of EPCOR's Board of Directors. She brings significant governance experience from her work on several prominent Canadian boards. Ms. Rennie also has a deep understanding of EPCOR and our commitment to the communities and customers we serve," said Mr. Lee.
Highlights of EPCOR's financial performance are as follows:
- Net income was $65 million for the three months ended March 31, 2018, compared to net income of $38 million for the corresponding period in the previous year, while Adjusted EBITDA was $164 million for the three months ended March 31, 2018, compared to $119 million for the corresponding period in the previous year. The increase of $27 million in net income in the quarter was primarily due to higher Adjusted EBITDA, as described below, as well as, higher transmission system access service charge net collections in 2018.The increase of $45 million in Adjusted EBITDA in the quarter was primarily due to the contribution from the Drainage operations which were transferred to the Company in September 2017 and higher revenues in the Water Services and U.S. Operations segments from higher customer rates and increased sales volumes.
- Investment in capital projects was $101 million for the three months ended March 31, 2018, compared with $98 million for the corresponding period in the previous year. The $3 million increase was primarily due to higher spending in the Water Services segment related to the addition of the Drainage operations, partially offset by lower spending in the Distribution and Transmission segment on the Advanced Meter Infrastructure project and the Work Centre Redevelopment project, which were substantially complete in 2017.
Management's discussion and analysis and the unaudited condensed consolidated interim financial statements are available on
EPCOR's website and
EPCOR, through its wholly owned subsidiaries, builds, owns and operates electrical, natural gas and water transmission and distribution networks, water and wastewater treatment facilities and sanitary and stormwater systems, and infrastructure in Canada and the United States. The Company also provides electricity, natural gas and water products and services to residential and commercial customers. EPCOR, headquartered in Edmonton, is an Alberta Top 70 employer.
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