"EPCOR entered 2020 with ambitious plans across the organization and for the communities we serve," said Stuart Lee, EPCOR President and CEO. "While the organization was tested both by the extraordinary challenges of the pandemic and extreme weather conditions in multiple jurisdictions, our people delivered strong results across our footprint. In 2020, we improved safety and operational performance, supported customers and community organizations through the pandemic, and delivered consistently reliable utility services at a time when customers needed us the most."
"EPCOR's financial performance was also resilient and our results for the fourth quarter and the year 2020, were in line with our expectations. As we look ahead to 2021, we will continue to meet customer needs through our ongoing focus on operational excellence, growth, and serving our communities."
Highlights of EPCOR's financial performance are as follows:
- Net income was $64 million and $276 million for the three and twelve months ended December 31, 2020, respectively, compared with net income of $59 million and $231 million for the comparative periods in 2019. The increase of $5 million and $45 million for the three and twelve months ended December 31, 2020, respectively, was primarily due to higher Adjusted EBITDA, as described below.
- Adjusted EBITDA was $200 million and $776 million for the three and twelve months ended December 31, 2020, respectively, compared with $194 million and $730 million for the comparative periods in 2019. The increase of $6 million and $46 million for the three and twelve months ended December 31, 2020, respectively, was primarily due to higher customer rates for water, wastewater and electricity transmission, customer growth, higher water consumption in Arizona due to hot and dry weather conditions and higher water revenues in Arizona due to a tax reform adjustment credit on customer bills in 2019 with no corresponding credit in 2020, partially offset by higher provisions for expected credit losses from customers resulting from the deferral of utility bill payments and lower Energy Price Setting Plan margins. In addition, for the twelve months ended December 31, 2020, higher electricity distribution rates resulted in higher revenues.
- Investment in capital projects including an acquisition was $938 million for the twelve months ended December 31, 2020, compared with $786 million for the corresponding period in 2019, and included higher capital spending across most of our operating segments, partially offset by lower spending in Distribution and Transmission segment and business acquisition.
Management's discussion and analysis and the audited consolidated financial statements are available on our website and SEDAR.
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 75 employer.
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