HALIFAX, Nova Scotia - Today Emera (TSX: EMA) reported 2023 third quarter financial results.
Highlights
Quarterly adjusted EPS(1) was $0.75 compared to $0.76 in Q3 2022. Quarterly reported net income per common share decreased $0.26 to $0.37 in Q3 2023 compared to $0.63 in Q3 2022 due to higher mark-to-market ('MTM') losses.
Year-to-date, adjusted EPS (1) increased $0.06 or 3% to $2.33 compared to $2.27 in 2022. Year-to-date reported EPS was $2.53 compared to $1.75 in 2022, primarily due to year-over-year differences in MTM impacts.
Operating cash flow before changes in working capital increased 125% to $1.8 billion compared to $806 million in 2022 due to solid operating performance and the recovery of fuel and storm costs in 2023 that were under-recovered in 2022.
2024-2026 capital plan of $8.9 billion predominately focused on reliability, customer growth and cleaner energy investments is driving approximately 7% annualized rate base growth.
Approximately 75% of our capital plan to be invested in Florida.
The Florida Public Service Commission approved new rates for Peoples Gas Systems, Inc. ('PGS') which will provide additional annual revenues of $107M USD starting in 2024. This outcome from the PGS rate case application positions us to advance important investments to support the growth of that business for the benefit of customers.
'Continued strong operational performance across Emera is helping to offset the headwinds of higher interest costs, and we continue to see solid growth throughout our business.' said Scott Balfour, President and CEO of Emera Inc. 'Our $8.9 billion 3-year capital plan underpins this growth as we continue to invest to deliver upon our customer's demand for cleaner, reliable and cost-effective energy.'
Q3 2023 Financial Results
Q3 2023 reported net income was $101 million, or $0.37 per common share, compared with reported net income of $167 million, or $0.63 per common share, in Q3 2022. Reported net income for the quarter included a $103 million MTM loss, after-tax, primarily at Emera Energy Services ('EES') compared to a $36 million loss in Q3 2022.
Q3 2023 adjusted net income(1) was $204 million, or $0.75 per common share, compared with $203 million, or $0.76 per common share, in Q3 2022. The increase in adjusted net income was primarily due to higher earnings at Tampa Electric ('TEC'), higher contribution from Canadian equity investments, and higher income tax recovery at corporate. This was offset by decreased earnings at EES, Nova Scotia Power ('NSPI') and PGS and increased corporate interest expense.
Year-to-date Financial Results
Year-to-date reported net income was $689 million or $2.53 per common share, compared with reported net income of $462 million or $1.75 per common share year-to-date in 2022. Year-to-date reported net income included a $55 million MTM gain, after-tax, primarily at EES, compared to a $132 million loss in 2022.
Year-to-date adjusted net income(1) was $634 million or $2.33 per common share, compared with $601 million or $2.27 per common share year-to-date in 2022.
Growth in year-to-date adjusted net income was primarily due to higher earnings at TEC and NMGC, higher contribution from Canadian equity investments, the impact of a weaker Canadian dollar ('CAD') on the translation of Emera's non-Canadian affiliates and higher income tax recovery at corporate. This was offset by decreased earnings at NSPI and PGS and increased corporate interest expense.
The translation impact of the change in FX rates on foreign denominated earnings decreased net income by $9 million in Q3 2023 and increased net income by $33 million year-to-date, compared to the same periods in 2022. The translation impact of a weaker CAD on foreign denominated earnings increased adjusted net income by $5 million in Q3 2023 and $23 million year-to-date compared to the same periods in 2022. Impacts of the changes in the translation of the CAD include the impacts of corporate FX hedges used to mitigate translation risk of USD earnings in the Other segment.
Emera uses financial measures that do not have standardized meaning under USGAAP and may not be comparable to similar measures presented by other entities. Emera calculates the non-GAAP measures and ratios by adjusting certain GAAP measures for specific items. Management believes excluding these items better distinguishes the ongoing operations of the business. For further information on the non-GAAP financial measure, adjusted net income, and the non-GAAP ratio, adjusted EPS - basic, refer to the 'Non-GAAP Financial Measures and Ratios' section of Emera's Q3 2023 MD&A which is incorporated herein by reference and can be found on SEDAR+ at www.sedarplus.ca. Reconciliation to the nearest GAAP measure is included in 'Segment Results and Non-GAAP Reconciliation' above.
Forward Looking Information
This news release contains forward-looking information within the meaning of applicable securities laws. By its nature, forward-looking information requires Emera to make assumptions and is subject to inherent risks and uncertainties. These statements reflect Emera management's current beliefs and are based on information currently available to Emera management. There is a risk that predictions, forecasts, conclusions and projections that constitute forward-looking information will not prove to be accurate, that Emera's assumptions may not be correct and that actual results may differ materially from such forward-looking information. Additional detailed information about these assumptions, risks and uncertainties is included in Emera's securities regulatory filings, including under the heading 'Business Risks and Risk Management' in Emera's annual Management's Discussion and Analysis, and under the heading 'Principal Risks and Uncertainties' in the notes to Emera's annual and interim financial statements, which can be found on SEDAR+ at www.sedarplus.ca.
About Emera
Emera Inc. is a geographically diverse energy and services company headquartered in Halifax, Nova Scotia, with approximately $39 billion in assets and 2022 revenues of more than $7.5 billion. The company primarily invests in regulated electricity generation and electricity and gas transmission and distribution with a strategic focus on transformation from high carbon to low carbon energy sources. Emera has investments in Canada, the United States and in three Caribbean countries. Emera's common and preferred shares are listed on the Toronto Stock Exchange and trade respectively under the symbol EMA, EMA.PR.A, EMA.PR.B, EMA.PR.C, EMA.PR.E, EMA.PR.F, EMA.PR.H, EMA.PR.J and EMA.PR.L. Depositary receipts representing common shares of Emera are listed on the Barbados Stock Exchange under the symbol EMABDR and on The Bahamas International Securities Exchange under the symbol EMAB. Additional information can be accessed at www.emera.com or at www.sedarplus.com.
Contact:
Dave Bezanson
VP, Investor Relations & Pensions
Emera Inc.
Tel: 902-474-2126
Email: dave.bezanson@emera.com
EMERA INCORPORATED 
