“First quarter net income was ahead of expectations across most of our utilities and geographies,” said
Stuart Lee, EPCOR President & CEO. “Our operations and capital program delivery were on-track to open the year. The first quarter set the foundations for significant new growth opportunities across our North American footprint,” said Mr. Lee. “In Ontario, we completed the design for a new demineralized water treatment facility to support the Darlington Nuclear Generating Station. We expect to complete construction in 2023 and then operate the facility under a 30-year agreement. In Texas, we signed preliminary service agreements for the design and early works for a large-scale groundwater supply system and an industrial water treatment plant in central Texas.”
“Energy prices in Alberta remained high and volatile in the first quarter. EPCOR’s customer service teams continued to work with customers to help them manage their accounts, make payment arrangements, and consider their alternatives. We continue to see growth in electricity and natural gas sites that have signed up for Encor by EPCOR – our competitive retail energy product that offers the convenience and stability of fixed rate energy prices.”
Highlights of EPCOR’s financial performance are as follows:
- Net income was $74 million for the three months ended March 31, 2022, compared with net income of $55 million for the comparative period in 2021. The increase was primarily due to higher transmission system access service charge net collections, higher net collection of U.S. natural gas procurement costs and higher Adjusted EBITDA1, partially offset by unfavorable fair value adjustments related to financial electricity purchase contracts and higher income tax expense.
- Adjusted EBITDA was $209 million for the three months ended March 31, 2022, compared with $194 million for the comparative period in 2021. The increase was primarily due to higher rates and customer growth across all business segments except Regulated Rate Option energy sites, higher Adjusted EBITDA from the San Tan operations acquired on January 29, 2021 and higher Energy Price Setting Plan margins, partially offset by a higher provision for expected credit losses from customers and lower Adjusted EBITDA due to expropriation of the Bullhead City water utility operations on September 1, 2021.
- Investment in capital projects was $167 million for the three months ended March 31, 2022, compared with $271 million for the corresponding period in 2021, primarily due to the acquisition of San Tan operations in 2021, partially offset by higher capital spending in the Company’s Water Services, Distribution and Transmission, and U.S. Operations segments.
Interim management’s discussion and analysis and the unaudited condensed consolidated interim financial statements are available on
our 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, 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 committed to conducting its business and operations safely and responsibly. Environmental Stewardship, public health and community well-being are at the heart of EPCOR’s mission to provide clean water and safe, reliable energy. EPCOR is an Alberta Top 75 employer and is ranked among Corporate Knights’ 2021 Best 50 Corporate Citizens in Canada.
1. Adjusted EBITDA is a non-IFRS financial measure as defined on page 3 of the MD&A for the three months ended March 31, 2022.
For more information, please contact: