“Second quarter operating and financial performance continued to be ahead of expectations across EPCOR’s utilities and geographies” said
Stuart Lee, EPCOR President & CEO. “Despite global supply chain headwinds, in the first six months of 2022 our capital program invested $388 million into renewing utility infrastructure, connecting customers in growing communities, and meeting the complex energy and water needs of commercial partners.”
“EPCOR’s expertise is sought by partners across North America,” continued Mr. Lee. “In Alberta and British Columbia, EPCOR is successfully developing electrical infrastructure to support the Trans Mountain pipeline. In the Southern Bruce region of Ontario, 265 kilometres of natural gas pipeline is now in place, connecting industrial, agricultural and residential customers to a new energy supply. At the Darlington Nuclear Generating Station, we have begun work on a new demineralized water treatment facility which we expect to complete in 2023. In Texas, we signed preliminary service agreements for design and early works for a large-scale groundwater supply system and an industrial water reclamation facility. These and other initiatives leverage the deep technical expertise of our people, disciplined project management approach, and commitments to sustainability and innovation.”
Highlights of EPCOR’s financial performance are as follows:
- Net income was $93 million and $167 million for the three and six months ended June 30, 2022, compared with net income of $86 million and $141 million for the comparative periods in 2021, respectively. The increase of $7 million and $26 million for the three and six months ended June 30, 2022, respectively, was primarily due to higher transmission system access service charge net collections and higher Adjusted EBITDA, as described below, partially offset by unfavorable fair value adjustments related to financial electricity purchase contracts and higher depreciation. In addition, for the six months ended June 30, 2022, there was higher net collection of U.S. natural gas procurement costs, partially offset by higher income tax expense.
- Adjusted EBITDA was $233 million and $442 million for the three and six months ended June 30, 2022, compared with $219 million and $413 million for the comparative periods in 2021, respectively. The increase of $14 million and $29 million for the three and six months ended June 30, 2022, respectively, was primarily due to higher rates and customer growth and higher Energy Price Setting Plan margins, partially offset by lower Adjusted EBITDA due to expropriation of the Bullhead City water utility systems on September 1, 2021. In addition, for the six months ended June 30, 2022, there was a higher provision for expected credit losses from customers.
- Investment in capital projects was $388 million for the six months ended June 30, 2022, compared with $471 million for the corresponding period in 2021, primarily due to the acquisition of San Tan operations in 2021 with no corresponding acquisition in 2022, partially offset by higher capital spending in the Company’s Water Services, Distribution and Transmission, U.S. Operations and Other 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’ 2022 Best 50 Corporate Citizens in Canada.
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