Canadian Utilities Reports Higher First Quarter Earnings


CALGARY, ALBERTA--(Marketwire - April 27, 2012) - Canadian Utilities Limited (TSX: CU, CU.X)

Canadian Utilities Limited today reported higher earnings for the first quarter led by additional infrastructure investment in the utilities to support Alberta growth.

Earnings attributable to equity owners of Canadian Utilities were $193 million ($1.45 per share) and Adjusted Earnings were $175 million for the three months ended Mar. 31, 2012, compared to $176 million ($1.34 per share) and $166 million, respectively, in the first quarter of 2011.

ATCO Electric, ATCO Gas and ATCO Pipelines invested almost $500 million in infrastructure to support Alberta's continuing growth, adding to the rate base upon which the companies earn a return. A significant amount of this quarter's investment took place to connect major industrial customers in northeast Alberta to the province's transmission grid and to reinforce the electricity system serving that growing region of the province.

Canadian Utilities' increased earnings were partially offset by lower earnings from natural gas storage operations in ATCO Midstream.

Canadian Utilities declared a second quarter dividend for 2012 of 44.25 cents per Class A non-voting and Class B common share. Canadian Utilities' dividend per share has increased for 40 consecutive years.


A financial summary and reconciliation of Adjusted Earnings to earnings attributable to equity owners is provided below:

  For the Three Months
  Ended March 31
($ Millions except per share data) 2012 2011
Adjusted Earnings (1) (2) 175 166
Adjustments for Rate Regulated Activities (3) 9 4
Dividends on Equity Preferred Shares 9 6
Earnings Attributable to Equity Owners 193 176
Earnings Per Share 1.45 1.34
Revenues 837 809
Funds Generated By Operations (1) (4) 418 383

(1) These measures do not have standardized meaning under International Financial Reporting Standards (IFRS) and may not be comparable to similar measures used by other companies.

(2) Adjusted Earnings are earnings attributable to equity owners after adjusting for the timing of revenues and expenses associated with rate regulated activities and dividends on equity preferred shares of Canadian Utilities. Adjusted Earnings also exclude one-time gains and losses and items that are not in the normal course of business or day-to-day operations. Adjusted Earnings present earnings on the same basis as was used prior to adopting IFRS - that basis being the U.S. accounting principles for rate regulated entities - and they are a key measure used to assess segment performance, to reflect the economics of rate regulation and to facilitate comparability of Canadian Utilities' earnings with other Canadian rate regulated companies.

(3) Refer to Note 3 to the consolidated financial statements for descriptions of the adjustments for rate regulated activities and the timing of their recovery from or refund to customers.

(4) This measure is cash flow from operations before changes in non-cash working capital.

The $28 million increase in revenues was due primarily to increased rate base in the utilities, as well as the addition of ATCO Gas Australia in late July 2011. These increases were partially offset by lower flow through natural gas sales in ATCO Midstream and lower Alberta Power Pool prices.

Funds Generated by Operations increased $35 million primarily for the same reasons earnings increased, as well as higher total payments by utility customers for infrastructure.

Canadian Utilities' consolidated financial statements and management's discussion and analysis for the three months ended Mar. 31, 2012, will be available on the Canadian Utilities website (, via SEDAR ( or can be requested from the Company.

Alberta-based Canadian Utilities Limited, an ATCO company, with more than 6,700 employees and assets of approximately $12 billion, delivers service excellence and innovative business solutions worldwide with leading companies engaged in utilities (pipelines, natural gas and electricity transmission and distribution), energy (power generation, natural gas gathering, processing, storage and liquids extraction) and technologies (business systems solutions). More information can be found at

Forward-Looking Information:

Certain statements contained in this news release may constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", and similar expressions. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Corporation believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.

Any forward-looking information contained in this news release represents the Corporation's expectations as of the date hereof, and is subject to change after such date. The Corporation disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.


Canadian Utilities Limited
B.R. (Brian) Bale
Senior Vice President & Chief Financial Officer
(403) 292-7502