Stock Name: VNR
Amount: CAD 0.25
Announcement Date: 14/05/2012
Record Date: 27/06/2012
Dividend Detail:
SOLID OUTLOOK DESPITE AN ESPECIALLY MILD WINTER
MONTREAL, May 14, 2012 /CNW Telbec/ - Valener Inc. (Valener) (TSX: VNR),
which has held the public ownership interest in Gaz M��tro Limited
Partnership (Gaz M��tro) since September 30, 2010, today announces its
financial results for the second quarter ended March 31, 2012.
Valener's results
For the second quarter of fiscal 2012, Valener posted net income of
$21.7 million, or $0.58 per share, compared to $22.4 million or $0.60
per share in the second quarter of last year. For the first six months
of fiscal 2012, net income totalled $31.8 million, or $0.85 per share,
compared to $33.5��million, or $0.91 per share, in the same period last
year.
These circumstantial declines of $0.7 million, or $0.02 per share, for
the second quarter of fiscal 2012 and of $1.7��million, or $0.06 per
share, for the first six months were mainly due to a lower share in the
net income of Gaz M��tro, whose results were affected by especially mild
temperatures.
"Nevertheless, despite those climatic factors, natural gas prices remain
extremely favourable to the commercial development of Gaz M��tro, our
primary investment," said Pierre Monahan, Chairman of the Board of
Valener.
Solid outlook for natural gas
"Given the abundance of natural gas in the North American market and the
corresponding impact on prices, natural gas continues to enjoy a highly
advantageous competitive position in all of Gaz��M��tro's markets,
especially the industrial market. It's a situation that has prompted
consideration of providing service to the C��te-Nord region, which is
the last of Quebec's major industrial regions that does not yet benefit
from the environmental and economic advantages of natural gas. Such a
project would require an investment of about $750 million and add
approximately 40% to the value of the rate base of our gas distribution
activity in Quebec. To make a fully informed decision on a project of
such magnitude, the Quebec government and Gaz M��tro will diligently
carry out feasibility studies, which will begin shortly with
conclusions expected by the end of 2012," said Sophie Brochu, President
and Chief Executive Officer of Gaz M��tro.
While the decline in the price of natural gas has an impact on Gaz
M��tro's revenues, it does not affect the company's net income since
natural gas purchased by Gaz M��tro is billed to customers at cost.
Declaration of quarterly dividend
Valener's Board of Directors declared a quarterly dividend of $0.25 per
common share payable on July 16, 2012 to shareholders of record at the
close of business on June 29, 2012. With this dividend, Valener will
have paid to its shareholders, as planned, an annual dividend of $1.00
per share for fiscal 2012.
5% discount maintained under the Dividend Reinvestment Plan
As approved by the Board of Directors, reinvestments of dividends into
additional common shares, for the dividend payable on July 16, 2012,
shall be carried out by way of an issuance of new Valener common shares
at a discount of 5% to the weighted average price during the five
trading days immediately preceding the dividend payment date.
Wind power projects of the Seigneurie de Beaupr�� Wind Farms 2 and 3
(wind power projects��2 and 3)
Beaupr�� ��ole General Partnership (which is 51% and 49% indirectly owned
by Gaz M��tro and Valener respectively) and a wholly owned subsidiary of
Boralex inc. are equal partners in two wind power projects with an
installed capacity of 272 megawatts, namely, wind power projects 2 and
3, which are scheduled for commissioning in December 2013.
Completion of these wind power projects requires a total investment of
approximately $750��million (including financing costs). On November 8,
2011, Seigneurie de Beaupr�� Wind Farms��2 and 3 General Partnership, the
entity that owns these projects, completed a debt financing with a
group of lenders. This $725 million financing (including a construction
loan and short-term facilities) is non-recourse to Gaz M��tro and
Valener.
Construction on wind power projects 2 and 3 began in May 2011. On
November 25, 2011, the construction site closed for the winter, and
activity resumed on May 7, 2012.
Gaz M��tro's results
Net income attributable to the Partners of Gaz M��tro totalled $106.3
million for the second quarter of fiscal 2012 and $161.1 million for
the first six months, year-over-year decreases of $1.9 million and $7.8
million, respectively. These decreases were due, among others, to lower
net income from the natural gas distribution activity in Quebec (as
explained below), lower net income from the Energy Services and Other
segment as the interests in MTO Telecom��Inc. and Aqua Data Inc. were
sold in fiscal 2011, and unfavourable non-recurring items in the
Corporate Affairs and Other segment.
Mild temperatures have an impact on results despite the normalization
mechanism
Gaz M��tro's natural gas distribution activity in Quebec benefits from a
revenue normalization mechanism, which is based on normal temperatures,
for its distribution and load-balancing revenues. Given the
considerably warmer-than-normal temperatures in the first six months of
the fiscal year, application of this mechanism did not fully eliminate
the impact on Gaz M��tro's revenues. Moreover, the impact of lower
transported volumes on transportation revenues, a result of lower
consumption by customers, did not translate into an equivalent
reduction in costs.
Gaz M��tro's segment results - Consolidated net income attributable to
the Partners of Gaz��M��tro
�� | 3 months ended March 31 (1) | �� | 6 months ended March 31 (1) | |||||
(in millions of dollars) | 2012 | 2011 | Change | �� | 2012 | 2011 | Change | |
Energy Distribution | �� | �� | �� | �� | �� | �� | �� | |
�� | Gaz M��tro-QDA | 92.4 | 93.4 | (1.0) | �� | 136.1 | 140.6 | (4.5) |
�� | VGS and GMP | 8.2 | 8.5 | (0.3) | �� | 15.7 | 14.5 | 1.2 |
�� | Financing costs of investments in this segment (2) | (0.8) | (0.9) | 0.1 | �� | (1.9) | (1.9) | - |
�� | 99.8 | 101.0 | (1.2) | �� | 149.9 | 153.2 | (3.3) | |
Natural Gas Transportation | �� | �� | �� | �� | �� | �� | �� | |
�� | TQM, PNGTS and Champion Pipe Line Corporation Ltd | 6.1 | 6.6 | (0.5) | �� | 11.2 | 12.3 | (1.1) |
�� | Financing costs of investments in this segment (2) | (0.7) | (0.8) | 0.1 | �� | (1.7) | (1.8) | 0.1 |
�� | 5.4 | 5.8 | (0.4) | �� | 9.5 | 10.5 | (1.0) | |
Natural Gas Storage | �� | �� | �� | �� | �� | �� | �� | |
�� | Intragaz | 1.7 | 1.8 | (0.1) | �� | 3.9 | 3.6 | 0.3 |
�� | Financing costs of investments in this segment (2) | (0.3) | (0.5) | 0.2 | �� | (0.8) | (0.9) | 0.1 |
�� | 1.4 | 1.3 | 0.1 | �� | 3.1 | 2.7 | 0.4 | |
Energy Services and Other | �� | �� | �� | �� | �� | �� | �� | |
�� | Energy, water and fibre optic | 1.3 | 1.1 | 0.2 | �� | 2.2 | 3.5 | (1.3) |
�� | Financing costs of investments in this segment (2) | (0.2) | (0.3) | 0.1 | �� | (0.5) | (0.7) | 0.2 |
�� | 1.1 | 0.8 | 0.3 | �� | 1.7 | 2.8 | (1.1) | |
Corporate Affairs and Other | �� | �� | �� | �� | �� | �� | �� | |
�� | Corporate Affairs and Other | (1.4) | (0.7) | (0.7) | �� | (3.1) | (0.3) | (2.8) |
�� | Gain realized by Gaz M��tro ��ole inc. on the sale of 49.0% of its interest in the Seigneurie projects | - | - | - | �� | - | (1.1) | 1.1 |
�� | Costs related to the CVPS acquisition | 0.3 | - | 0.3 | �� | 0.8 | - | 0.8 |
�� | (1.1) | (0.7) | (0.4) | �� | (2.3) | (1.4) | (0.9) | |
Consolidated net income attributable to the Partners of Gaz M��tro, excluding non- recurring items | 106.6 | 108.2 | (1.6) | �� | 161.9 | 167.8 | (5.9) | |
Non-recurring items | (0.3) | - | (0.3) | �� | (0.8) | 1.1 | (1.9) | |
Consolidated net income attributable to the Partners of Gaz M��tro | 106.3 | 108.2 | (1.9) | �� | 161.1 | 168.9 | (7.8) | |
(1) | Seasonal temperature fluctuations influence the energy consumption levels of customers and in turn influence Gaz M��tro's interim consolidated financial results. Historically, Gaz M��tro's revenues and profitability are higher in the first two quarters of a fiscal year than in the last two quarters. | ||||||
(2) | These costs consist of the interest on the long-term debt incurred by Gaz M��tro to finance investments in the subsidiaries, joint ventures and companies subject to significant influence of each segment. | ||||||
Segment analysis of Gaz M��tro's results
Quebec Natural Gas Distribution (Gaz M��tro-QDA)
For the second quarter of fiscal 2012, Gaz M��tro-QDA's normalized
natural gas deliveries totalled 1,985 million cubic metres, up 0.7%
from the same quarter last year.
For the first six months of fiscal 2012, deliveries totalled 3,524
million cubic metres, down 0.2% from the first six months of last year.
In the industrial market, natural gas deliveries were up 1.6% from the
first six months of fiscal 2011, partly due to greater consumption,
particularly in the metallurgy sector and, to a lesser extent, in the
refining and pulp and paper sectors.
Normalized deliveries to the residential and commercial markets declined
0.2% and 2.8%, respectively, from the first six months of fiscal 2011,
essentially due to slow economic growth combined with energy
conservation measures undertaken by Gaz M��tro-QDA customers, partly
offset by the maturation of new sales.
The above-listed reasons also explain the 2012 second quarter declines
in Gaz M��tro-QDA's normalized natural gas deliveries.
Gaz M��tro-QDA's net income attributable to the Partners of Gaz M��tro
totalled $92.4 million for the second quarter of fiscal 2012 and $136.1
million for the first six months, year-over-year decreases of $1.0
million and $4.5��million, respectively, that were mainly due to:
lower deliveries to the residential and commercial markets combined with
the fact that application of the temperature normalization mechanism
did not fully eliminate the impact on revenues of considerably
warmer-than-normal temperatures; and
the combined impact of lower transported volumes on transportation
revenues and of a higher average cost of transportation tools resulting
from a change in demand by industrial customers and considerably
warmer-than-normal temperatures.
These items were partly offset, among other factors, by the favourable
impact of a decline in anticipated overearnings attributed to customers
for the first six months of fiscal 2012 in relation to the anticipated
overearnings in the same period of fiscal 2011 and by a greater number
of financial optimization transactions in the load-balancing service.
Project to serve the C��te-Nord region
The C��te-Nord region is the last of Quebec's major industrial regions
that does not yet benefit from the environmental and economic
advantages of natural gas.
Large amounts of heavy oil are currently consumed in the C��te-Nord.
However, the distance separating the C��te-Nord from Gaz M��tro-QDA's
existing infrastructures is considerable. More than 450 km of pipeline
would have to be laid down to connect Saguenay to Sept-��les, passing
through the other major industrial centres of Baie-Comeau and
Port-Cartier.
Such a project would require an investment of about $750 million and add
approximately 40% to the value of Gaz M��tro-QDA's rate base. To make a
fully informed decision on a project of such magnitude, the Quebec
government and Gaz M��tro will diligently carry out the following three
comprehensive feasibility studies:
market studies to determine the expected potential energy consumption in
the C��te-Nord if natural gas were available;
environmental and social studies to select the lowest-impact route for
the gas pipeline; and
technical and financial feasibility studies, including engineering, to
optimize the design and confirm the costs.
These studies will be initiated very shortly and the conclusions are
expected by the end of 2012. If the conclusions are positive, Gaz
M��tro-QDA will continue the regulatory and environmental approval
process in 2013. Thereafter, if all the necessary approvals are
obtained, the preparatory work and construction of Gaz M��tro-QDA's
C��te-Nord service could start in 2014 with a view to commence
operations at the end of 2015 or in 2016.
Energy Distribution in Vermont
Net income attributable to the Partners of Gaz M��tro from energy
distribution activities in Vermont totalled $7.4��million1 for the second quarter of fiscal 2012, down $0.2 million from the
second quarter of last year. This slight decline was mainly due to
lower natural gas and electricity deliveries by Vermont Gas Systems,
Inc. (VGS) and Green Mountain Power Corporation (GMP), partly because
temperatures were considerably warmer this second quarter than last
year's second quarter, and to an increase in VGS's and GMP's operating
and maintenance expenses, partly offset by a 3.2% increase in GMP's
distribution rates attributable to its 2012 rate case and a slightly
higher number of customers for VGS.
For the first six months, net income attributable to the Partners of Gaz
M��tro from energy distribution activities in Vermont totalled $13.8
million1, a $1.2 million year-over-year increase that was primarily due to
favourable parameters in GMP's 2012 rate case and to income generated
on GMP's increased investment, in December 2010, in Vermont Transco
LLC, which is involved in electricity transmission in Vermont. These
favourable items were partly mitigated by the fact that VGS and GMP had
lower natural gas and electricity deliveries combined with higher
operating and maintenance expenses.
Acquisition of Central Vermont Public Service Corporation (CVPS)
In order to strengthen its presence in Vermont, on July 12, 2011, Gaz
M��tro announced that it had signed a final agreement to purchase CVPS,
the largest electricity distribution company in Vermont. Subject to
required U.S. regulatory approvals, CVPS will be acquired for an
all-cash consideration of US$35.25 per share for an approximate total
of US$485 million, net of transaction and other costs estimated at
approximately US$40 million.
The transaction was approved on September 29, 2011 by a strong majority
of CVPS's common shareholders. CVPS and Gaz M��tro also received
confirmation from the Federal Trade Commission and the Antitrust
Division of the U.S. Department of Justice that, with respect to this
acquisition, no measures or action would be requested under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976. On March 6, 2012,
the Federal Energy Regulatory Commission (FERC) issued its decision in
favour of the transaction. The acquisition is also subject to the
approval of other U.S. federal and state regulators, including the
Vermont Public Service Board. Gaz M��tro is confident that it will
obtain the additional authorizations required to finalize the
acquisition by summer 2012.
Gaz M��tro intends to finance this new investment with 50% debt and 50%
equity. On November 11, 2011, Gaz M��tro inc. (GMi) entered into a note
purchase agreement with investors, by way of private placement, in
anticipation of a later issuance of notes secured by Gaz M��tro, for a
total capital amount of US$260 million. The proceeds of the issuance
will be loaned to Gaz M��tro on conditions similar to those of the
secured notes, for purposes of partially financing the acquisition of
CVPS shares. GMi has sent investors the requisite prior notice for a
May 15, 2012 note issuance. Gaz��M��tro has also sent an issuance notice
for the issuance of $260 million in Gaz M��tro units to GMi and Valener
under their pre-emptive rights, as set out in Gaz M��tro's Limited
Partnership Agreement. Upon receipt of this notice, both GMi and
Valener confirmed that they will exercise their pre-emptive rights and
subscribe their full respective shares in the issuance.
Once the transaction is finalized, CVPS and GMP will combine their
operations under Northern New England Energy Corporation (NNEEC), a
wholly owned subsidiary of Gaz M��tro based in Vermont.
Kingdom Community Wind (KCW) project
At the end of fiscal 2011, GMP began construction of the KCW project, a
63-megawatt wind power project located in Lowell, Vermont. This
US$150-million, 21-turbine project will supply power to more than
24,000 households consisting of GMP customers and members of the
Vermont Electric Cooperative, Inc. Construction is proceeding as
planned with commissioning scheduled for the end of 2012.
The Independent System Operator of New England (ISO-NE) published a
final system impact study requiring GMP to obtain a new voltage control
system needed to connect the project to the transmission system. GMP
estimates the cost of this system to be about US$11��million,
corresponding to an increase in project costs to be included in GMP's
rate base. GMP is currently reviewing the final study to determine
whether or not it will contest its conclusion before the FERC.
The investments required for this project are expected to be financed by
GMP through both debt and equity financing in accordance with its
capital structure, as this investment is regulated and consequently is
part of its rate base. To that effect, on November 16, 2011, GMP
issued, by way of private placement, US$50.0 million in Series A First
Mortgage Bonds. On April 2, 2012, GMP issued the second tranche of
Series B First Mortgage Bonds in the amount of US$25.0��million. These
issuances will be used to finance part of GMP's investment in the
project, with the remainder being financed by an equity injection from
Gaz M��tro, through NNEEC.
Natural Gas Transportation
Net income attributable to the Partners of Gaz M��tro from the Natural
Gas Transportation segment totalled $5.4 million1 for the second quarter of fiscal 2012, down $0.4 million from the
second quarter of fiscal 2011. This decline was mainly due to a
decrease in the share of income of Portland Natural Gas Transmission
System stemming from lower interruptible service revenues, partly
offset by an increase in the revenues of Trans Qu��bec & Maritimes
Pipeline Inc. (TQM).
For the first six months, net income from this segment was down $1.0
million due to these same factors and to a favourable adjustment that
had been recognized in the first six months of fiscal 2011 after the
amortization rates for TQM's property, plant and equipment were revised
downward upon approval by the National Energy Board.
Natural Gas Storage
Net income attributable to the Partners of Gaz M��tro from the Natural
Gas Storage segment totalled $1.4��million1 for the second quarter of fiscal 2012 and $3.1 million1 for the first six months, up $0.1��million and $0.4 million,
respectively, from the same periods last year. These moderate increases
were mainly due to lower operating expenses attributable to delays in
certain maintenance projects.
Energy Services and Other
The net income attributable to the Partners of Gaz M��tro from the Energy
Services and Other segment totalled $1.1 million1 in the second quarter of fiscal 2012, up $0.3 million from the same
period in fiscal 2011. This slight increase was mainly due to the
higher profitability of Climatisation et Chauffage Urbains de Montr��al,
s.e.c., stemming primarily from lower fuel costs due to lower
consumption volumes and a lower average cost, partly mitigated by the
impact of the sale of the interests in Aqua Data Inc. and MTO Telecom
Inc. in fiscal 2011.
For the first six months, net income totalled $1.7 million1, down $1.1 million from the same period in fiscal 2011. This decrease
was mainly due to the sale, in fiscal 2011, of the interests in
Aqua��Data��Inc. and MTO Telecom Inc. and to an increase in expenses of
Gaz M��tro Transport Solutions, L.P. (Transport Solutions), which
commenced operations during fiscal 2011. Being in the start-up phase,
Transport Solutions has started to execute its first liquefied natural
gas (LNG) supply contract for vehicles, in addition to building the
refuelling stations. These factors were partly offset by HydroSolution
L.P.'s higher profitability owing to higher rental rates for water
heaters and to a greater volume of unit sales in the electric water
heater business as well as to additional revenues from the sale of
heating and air conditioning equipment that began in March 2011.
Natural gas as transportation fuel
Transport Solutions, an indirect subsidiary of Gaz M��tro created to
develop natural gas for use as fuel by the transportation industry, is
deploying the Blue Road. Since July 2011, it has been installing the
facilities needed to supply LNG to 180 freight trucks from three
refuelling stations, under an agreement entered into with Transport
Robert 1973 Lt��e (Robert Transport). The Boucherville and Mississauga
stations have been in operation since September��19, 2011 and
January��16, 2012, respectively. For Transport Solutions, the project
represents an investment of approximately $5 million. Delivery of
trucks ordered by Robert Transport began in autumn 2011 and is
continuing in fiscal 2012.
Conference call
Valener will hold a conference call with financial analysts today,
Monday, May 14, 2012 at 11 a.m. (Eastern Time) to discuss its results
and those of Gaz M��tro for the second quarter ended March��31, 2012.
Pursuant to an administration and management support agreement entered
into between Valener and Gaz M��tro on September 30, 2010, Gaz M��tro
acts as the manager of Valener. As such, Sophie Brochu, President and
Chief Executive Officer, and Pierre Despars, Executive Vice-President,
Corporate Affairs and Chief Financial Officer of Gaz M��tro inc., the
General Partner of Gaz M��tro, will be the speakers, and a question
period will follow.
The call will be broadcast live and accessible by dialling 647-427-7450 or toll-free 1-888-231-8191. It will also be available via webcast on Valener's website (www.valener.com) in the Events & Presentations page of the Investors section.
The media and other interested parties are invited to listen in on this
conference call. After the conference call, the speakers will be
available for media interviews and questions.
For 30 days afterward, a rebroadcast will be accessible by dialling
416-849-0833 or toll-free 1-855-859-2056 (access code: 74592225). For
90 days afterward, the call can be played back on the above-mentioned
website.
Overview of Valener
Valener owns an economic interest of approximately 29% in Gaz M��tro.
Valener therefore has a stake in the energy industry and benefits from
Gaz M��tro's diversified profile, both in terms of geography and
business segment. Valener also owns an indirect interest of 24.5% in
the wind power projects developed with Gaz M��tro and Boralex inc. on
the private lands of S��minaire de Qu��bec. Valener may also pursue its
own development projects and acquisition strategies subject to a
non-competition agreement in favour of Gaz M��tro and to applicable
limitations under its credit facility. Valener's common shares are
listed on the Toronto Stock Exchange under the "VNR" trading symbol. www.valener.com
Overview of Gaz M��tro
With over $3.8 billion in assets as at March 31, 2012, Gaz M��tro is
Quebec's leading natural gas distributor. Its more than
10,000-kilometre network serves 300 municipalities. Gaz M��tro has
operated in this regulated industry since 1957 and is the trusted
energy provider to its customers in Quebec and Vermont, who choose
natural gas for its competitive price, efficiency, comfort and
environmental benefits. Gaz M��tro is also present in the electricity
distribution market, natural gas transportation and storage, and in the
development of innovative energy projects such as wind power, natural
gas as fuel for the transportation industry and biomethanation. Gaz
M��tro is committed to the satisfaction of its customers, its Partners
(Gaz M��tro inc. and Valener), its employees and the communities it
serves. www.gazmetro.com
Cautionary note regarding forward-looking statements
This press release may contain forward-looking information within the
meaning of applicable securities laws. Such forward-looking information
reflects the intentions, plans, expectations and opinions of the
management of Gaz M��tro inc. (GMi), in its capacity as General Partner
of Gaz��M��tro, and acting as manager of Valener (the management of the
manager) and is based on information currently available to the
management of the manager and assumptions about future events.
Forward-looking statements can often be identified by words such as
"plans," "expects," "estimates," "forecasts," "intends," "anticipates"
or "believes," or similar expressions, including the negative and
conjugated forms of these words. Forward-looking statements involve
known and unknown risks and uncertainties and other factors beyond the
control of the management of the manager. A number of factors could
cause the actual results of Valener or of Gaz M��tro to differ
significantly from current expectations, as described in the
forward-looking statements, including but not limited to the general
nature of the aforementioned, terms of decisions rendered by regulatory
agencies, the competitiveness of natural gas in relation to other
energy sources, the reliability of natural gas supply, the integrity of
the natural gas distribution system, the progress of wind power
projects and other development projects, the ability to complete
attractive acquisitions (such as CVPS) and the related financing and
integration aspects, the ability to secure future financing, general
economic conditions, exchange rate fluctuations, and other factors
described in the Risk Factors Relating to Valener and the Risk Factors
Relating to Gaz M��tro sections of Valener's and Gaz��Metro's MD&As for
the year ended September 30, 2011 and in Valener's disclosure filings.
Although the forward-looking statements contained herein are based on
what the management of the manager believes to be reasonable
assumptions, among others, assumptions to the effect that no unforeseen
changes in the legislative and regulatory framework of energy markets
in Quebec and in the New England states will occur; that no significant
event occurring outside the ordinary course of business, such as a
natural disaster or other calamity, will occur; that Gaz M��tro can
continue to distribute substantially all of its net income (excluding
non-recurring items); that the wind power projects in which Valener and
Gaz M��tro are indirectly involved will be completed on time and within
the defined parameters; that Gaz M��tro will obtain the required
approvals from federal and state authorities for the acquisition of
CVPS; that Gaz M��tro will obtain sufficient capital for the CVPS
acquisition; that GMP will be able to quickly and effectively integrate
CVPS's operations; and that the conclusions of studies on the C��te-Nord
project will be positive and that the required regulatory approvals
will be obtained in addition to the other assumptions described in the
MD&A of Valener and Gaz M��tro for the quarter ended March 31, 2012, the
management of the manager cannot assure investors that actual results
will be consistent with these forward-looking statements. These
forward-looking statements are made as of this date, and the management
of the manager assumes no obligation to update or revise them to
reflect new events or circumstances, except as required pursuant to
applicable securities laws. Readers are cautioned to not place undue
reliance on these forward-looking statements.
____________________________
1 Net of financing costs
HIGHLIGHTS | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
VALENER INC. | �� | 3 months ended March 31 | �� | �� | 6 months ended March 31 | |||||||
(in millions of dollars, except for share data, which is in dollars) | �� | 2012 | �� | �� | 2011 | �� | �� | 2012 | �� | �� | 2011 | |
�� | �� | (unaudited) | �� | �� | (unaudited) | �� | �� | (unaudited) | �� | �� | (unaudited) | |
CONSOLIDATED INCOME AND CASH FLOWS | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
Share in the net income of Gaz M��tro | $ | 30.8 | �� | $ | 31.4 | �� | $ | 46.7 | �� | $ | 49.0 | |
Net income | $ | 21.7 | �� | $ | 22.4 | �� | $ | 31.8 | �� | $ | 33.5 | |
Cash flows related to operating activities | $ | 9.4 | �� | $ | 11.0 | �� | $ | 5.1 | �� | $ | 9.5 | |
Basic and diluted net income per share | $ | 0.58 | �� | $ | 0.60 | �� | $ | 0.85 | �� | $ | 0.91 | |
Dividends declared per share to shareholders of record on December 30, 2011 and on March 30, 2012 | $ | 0.25 | �� | $ | 0.25 | �� | $ | 0.50 | �� | $ | 0.50 | |
Weighted average number of shares outstanding (in millions) | �� | 37.4 | �� | �� | 37.3 | �� | �� | 37.4 | �� | �� | 36.9 | |
OTHER INFORMATION | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
Market prices on Toronto Stock Exchange (TSX): | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | High | $ | 16.50 | �� | $ | 17.29 | �� | $ | 16.50 | �� | $ | 18.37 |
�� | Low | $ | 15.17 | �� | $ | 16.25 | �� | $ | 13.55 | �� | $ | 16.25 |
�� | Close | $ | 15.37 | �� | $ | 16.76 | �� | $ | 15.37 | �� | $ | 16.76 |
CONSOLIDATED BALANCE SHEETS | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | �� | �� | �� | �� | �� | �� | �� March 31 2012 | �� | �� September 30 2011 | |||
�� | �� | �� | �� | �� | �� | �� | �� | (unaudited) | �� | �� | (audited) | |
Total assets | �� | �� | �� | �� | �� | �� | $ | 711.2 | �� | $ | 672.7 | |
Total debt | �� | �� | �� | �� | �� | �� | $ | 44.3 | �� | $ | - | |
Shareholders' equity | �� | �� | �� | �� | �� | �� | $ | 611.3 | �� | $ | 602.6 | |
Shareholders' equity per share | �� | �� | �� | �� | �� | �� | $ | 16.33 | �� | $ | 16.13 | |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� |
GAZ M��TRO LIMITED PARTNERSHIP | �� | 3 months ended March 31 | �� | �� | 6 months ended March 31 | |||||||
(in millions of dollars, except for unit data, which is in dollars) | �� | 2012 | �� | �� | 2011 | �� | �� | 2012 | �� | �� | 2011 | |
�� | �� | (unaudited) | �� | �� | (unaudited) | �� | �� | (unaudited) | �� | �� | (unaudited) | |
CONSOLIDATED INCOME AND CASH FLOWS | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
Revenues | $ | 679.0 | �� | $ | 734.5 | �� | $ | 1,215.6 | �� | $ | 1,312.3 | |
Gross margin | $ | 254.1 | �� | $ | 256.8 | �� | $ | 456.9 | �� | $ | 466.8 | |
Net income attributable to the Partners of Gaz M��tro | $ | 106.3 | �� | $ | 108.2 | �� | $ | 161.1 | �� | $ | 168.9 | |
Cash flows related to operating activities | $ | 245.5 | �� | $ | 236.9 | �� | $ | 325.7 | �� | $ | 312.8 | |
Purchases of property, plant and equipment | $ | 58.2 | �� | $ | 30.6 | �� | $ | 176.2 | �� | $ | 77.3 | |
Changes in deferred charges and credits | $ | 25.5 | �� | $ | 26.5 | �� | $ | 67.9 | �� | $ | 43.7 | |
Basic and diluted net income per unit attributable to the Partners of Gaz M��tro | $ | 0.85 | �� | $ | 0.86 | �� | $ | 1.28 | �� | $ | 1.34 | |
Distributions paid per unit to Partners (1) | $ | 0.28 | �� | $ | 0.28 | �� | $ | 0.56 | �� | $ | 0.28 | |
Weighted average number of units outstanding (in millions) | �� | 126.3 | �� | �� | 126.3 | �� | �� | 126.3 | �� | �� | 126.1 | |
OTHER INFORMATION | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
Authorized rate of return on deemed common equity (Gaz M��tro's natural gas distribution activity in Quebec) (2) | �� | �� | �� | �� | �� | �� | �� | 9.69% | �� | �� | 9.09% | |
Credit ratings | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | First mortgage bonds (Standard & Poor's (S&P)/DBRS Limited (DBRS)) (3) | �� | �� | �� | �� | �� | �� | �� | A/A | �� | �� | A/A |
�� | Commercial paper (S&P/DBRS) (3) | �� | �� | �� | �� | �� | �� | A-1(low)/R-1(low) | �� | A-1(low)/R-1(low) | ||
CONSOLIDATED BALANCE SHEETS | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | �� | �� | �� | �� | �� | �� | �� March 31 2012 | �� | �� September��30 2011 | |||
�� | �� | �� | �� | �� | �� | �� | �� | (unaudited) | �� | �� | (audited) | |
Total assets | �� | �� | �� | �� | �� | �� | $ | 3,806.2 | �� | $ | 3,727.2 | |
Total debt | �� | �� | �� | �� | �� | �� | $ | 1,759.9 | �� | $ | 1,762.9 | |
Partners' equity attributable to the Partners of Gaz M��tro | �� | �� | �� | �� | �� | �� | $ | 1,108.4 | �� | $ | 1,023.3 | |
Partners' equity per unit attributable to the Partners of Gaz M��tro | �� | �� | �� | �� | �� | �� | $ | 8.77 | �� | $ | 8.10 | |
(1) | No distributions were made in the first quarter of fiscal 2011, given that, as part of the reorganization of Gaz M��tro, a distribution of $0.31 per unit was paid on September 30, 2010 instead of on October 1, 2010. |
(2) | Including the sharing of productivity gains, if applicable, and excluding the Global Energy Efficiency Plan incentive.. |
(3) | Through its General Partner, Gaz M��tro inc. |
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For further information:
Investors and Analysts
Caroline Warren
Investor Relations
514-598-3324
www.valener.com
Media
Catherine Houde
Media and Public Relations
514-598-3449
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