VALENER REPORTS ITS RESULTS AND THOSE OF GAZ MÉTRO FOR THEIR 2010 FISCAL
YEARS
Gaz Métro continues to reap the rewards of the favourable competitive position of natural gas
MONTREAL, Nov. 19 /CNW Telbec/ - Valener Inc. ("Valener") (TSX: VNR) is pleased to report its results for the period from June 15, 2010, the date it was incorporated, to September 30, 2010 and the results for Gaz Métro Limited Partnership ("Gaz Métro") for the fiscal year ended September 30, 2010.
Corporate Reorganization
On September 30, 2010, the strategic corporate reorganization of Gaz Métro was completed. All the publicly held units of Gaz Métro were exchanged, on a one-for-one basis, for common shares of Valener. As a result, the former public unitholders of Gaz Métro retain, indirectly through Valener, their economic interest in Gaz Métro.
Trading in Valener shares started on the Toronto Stock Exchange last October 1, under the symbol "VNR". Gaz Métro is now a private limited partnership and is therefore no longer listed on an exchange.
"The creation of Valener, following a diligent process to respond to the federal government's tax reform, optimizes and stabilizes cash payments to our investors. Shortly after it was created, Valener successfully issued shares for approximately $38 million, net of issue costs. This is a tangible proof of the public investor's assessment of the advantages of the new structure and its confidence in its main asset, namely Gaz Métro", said Pierre Monahan, Chairman of the Board of Valener.
Moreover, Valener holds an option (the Seigneurie Option) granted to it by Gaz Métro as part of the corporate reorganization, allowing it to acquire an interest of 24.5% in the Seigneurie de Beaupré wind power project (the Seigneurie Project). The Seigneurie Option is exercisable, in whole but not in part, at any time for a period of 90 days from September 30, 2010.
Under an Administration and Management Support Agreement signed by Gaz Métro and Valener on September 30, 2010, Gaz Métro manages Valener.
"Gaz Métro's solid results for the 2010 fiscal year, the favourable competitive position of natural gas and Gaz Métro's various development projects are precursors of a promising future for Valener", added Mr. Monahan.
Valener's Results
Valener only acquired its interest in Gaz Métro on September 30, 2010, as part of the corporate reorganization of Gaz Métro. As a result, it has not recognized in its results any share of Gaz Métro's 2010 fiscal year net income. Even though it was incorporated on June 15, 2010, Valener did not have any activities from June 15 to September 30, 2010. Consequently, its after-tax net loss of $199,000 for that period is solely attributable to a capital tax expense.
Valener's Quarterly Dividend Declaration
The Board of Directors of Valener declared a quarterly dividend of $0.25 per common share payable on January 17, 2011 to shareholders of record on December 30, 2010.
Gaz Métro's Results
Valener's main asset is its interest of approximately 29% in Gaz Métro. Consequently, in order for Valener's shareholders to follow the evolution of their investment, Gaz Métro's results for the fiscal year ended September 30, 2010 are also presented with the financial results of Valener.
"Gaz Métro continues to reap the rewards of the favourable competitive position of natural gas. In Quebec, natural gas has been competitive for more than one year now in all market segments and compared to all energy sources. This competitive advantage sustained the growth of our deliveries throughout the 2010 fiscal year. Normalized natural gas deliveries in Quebec are 6% higher than the previous fiscal year. Gaz Métro also signed 7,745 new contracts during the 2010 fiscal year, which is 25% more than the previous year", said Sophie Brochu, President and Chief Executive Officer of Gaz Métro.
"In terms of our development projects, we have just incorporated Gaz Métro Transportation Solutions, a wholly-owned subsidiary of Gaz Métro Plus, to develop natural gas in the heavy transportation sector, an energy-consuming activity, thereby displacing diesel fuel, which is more expensive and emits more greenhouse gas. Gaz Métro Transportation Solutions has already signed a contract with Transport Robert for the supply of liquefied natural gas to freight trucks, initially 80 of them, representing about 9% of its present fleet, with the possibility of increasing that number over time", added Madame Brochu.
Gaz Métro reports adjusted net income1 of $152.6 million, or $1.27 per unit, for the 2010 fiscal year, which is $7.0 million, or $0.05 per unit, lower than adjusted net income for the previous fiscal year. The decrease is almost entirely due to non-recurring items in the 2010 and 2009 fiscal years.
Gaz Métro's Income Distribution
During the 2010 fiscal year, Gaz Métro paid distributions of $1.55 per unit compared to $1.24 per unit during the 2009 fiscal year. The reason for the difference is that on June 22 Gaz Métro, through its General Partner, Gaz Métro inc. (GMi), declared a distribution of $0.31 per unit payable on September 30, 2010 to Partners of record at the close of business on September 15, 2010, as part of its strategic corporate reorganization. The distribution would normally have been payable on October 1, 2010 had there been no strategic corporate reorganization.
Segment Analysis of Gaz Métro's Results
Quebec Natural Gas Distribution (Gaz Métro-QDA)
Gaz Métro-QDA's net income is $115.9 million for the 2010 fiscal year, down $2.2 million from the previous fiscal year.
Gaz Métro's normalized natural gas deliveries for the 2010 fiscal year are 6.0% higher than the previous year. The increase is entirely in the commercial and industrial markets.
In the industrial market, heavier consumption in the refining, petrochemical and metallurgy sectors, higher short-term interruptible service sales and relatively more favourable economic growth over the last few months among other things boosted volumes by 8.7%.
Relatively favourable economic growth and the maturation of new sales are the main reasons volumes were up 5.3% in the commercial market for the 2010 fiscal year.
Customers' energy efficiency initiatives are basically the reason natural gas volumes are down 2.7% in the residential market for the 2010 fiscal year. This is partially offset by the maturation of new sales.
The higher volumes translate into overearnings of $40.7 million for the 2010 fiscal year, compared to $22.0 million for the 2009 fiscal year. Based on the sharing method in the performance incentive mechanism, part of the overearnings were allocated to customers as a reimbursement of the advance they made to Gaz Métro-QDA in connection with the 2010 rate case and the balance contributed $6.7 million to net income for the 2010 fiscal year compared to $5.4 million for the 2009 fiscal year.
In spite of this $1.3 million increase in Gaz Métro's share of overearnings and the 0.26% increase in the authorized rate of return over the previous fiscal year, the $2.2 million decrease in Gaz Métro-QDA's net income is mainly due to the reduction in income and capital taxes included in rates charged to customers and subsequently borne by Gaz Métro's Partners, and a decrease in the average rate base.
Gaz Métro-QDA had 182,258 customers as at September 30, 2010, which is 1.6% more than at the same date the previous fiscal year. During the 2010 fiscal year, Gaz Métro-QDA signed 7,745 new contracts, which is 25% more than the previous fiscal year and the penetration rate of natural gas in new housing starts in the Greater Montreal Area was up 4% to 30%. The increases in the number of new contracts signed and the penetration rate are a reflection of the slight improvement in the economy and the competitiveness of the price of natural gas. The satisfaction rate of new customers in Quebec remained high at 91%.
Energy Distribution in Vermont
Net income from the energy distribution activity in Vermont is $15.7 million2 for the 2010 fiscal year, down $1.8 million from the previous fiscal year. The decrease is mainly attributable to lower natural gas deliveries by Vermont Gas Systems, Inc. (VGS) as a result of warmer temperatures than during the 2009 fiscal year as well as the impact of the depreciation of the US dollar in relation to the Canadian dollar on VGS and Green Mountain Power Corporation's (GMP) results ($2.8 million). The decrease is partially offset by a reduction in operating expenses mainly as a result of more resources being allocated to projects to which costs can be capitalized and income of $1.1 million basically from a gain on the sale of an investment owned by GMP.
Natural Gas Transportation
Gaz Métro's net income from the natural gas transportation segment is $16.8 million for the 2010 fiscal year, down $1.6 million from the previous fiscal year. The decrease is mainly due to the recognition, during the 2009 fiscal year, of the $6.7 million favourable impact of a rate adjustment for the 2007 and 2008 fiscal years that the National Energy Board (NEB) approved for Trans Québec & Maritimes Pipeline Inc. (TQM) as well as interest income of $0.8 million related to that decision. The decrease was partially offset by the recognition, in the first quarter of the 2010 fiscal year, of the $2.9 million favourable impact of an interim rate adjustment for TQM for the 2009 fiscal year, lower operating expenses and the reduction in TQM's financial costs.
Natural Gas Storage
Gaz Métro's adjusted net income3 from the natural gas storage segment is $5.4 million for the 2010 fiscal year, up $0.8 million over the previous fiscal year. This is mainly due to a slight indexation of rates and lower financial expenses as a result of lower interest rates.
Energy Services and Other
Adjusted net income4 for the Energy Services and Other segment is $6.8 million for the 2010 fiscal year, up $2.1 million over the previous fiscal year. This increase is mainly due to the favourable $2.3 million settlement of a dispute involving HydroSolution LP (HydroSolution) during the 2010 fiscal year, the $1.6 million write-down of the Aqua-Rehab Inc. goodwill during the 2009 fiscal year, increased profitability of HydroSolution and the sale of all the shares of Teldig Systems Inc. during the first quarter of the 2010 fiscal year, which generated a gain of $0.8 million. These favourable items are partially offset by the revenue recognition of $2.0 million in the 2009 fiscal year, being the last third of the gain on the sale of 50% of the units of Climatisation et Chauffage Urbains de Montréal, s.e.c. to Dalkia Canada Inc. in February 2006 and the $1.3 million increase in Gaz Métro Plus Limited Partnership's administration costs in connection with the reorganization of its technical services during the 2010 fiscal year with the objective to make them more profitable in the future.
Corporate Affairs and Other
The adjusted net loss4 for the Corporate Affairs and Other segment for the 2010 fiscal year is up $4.2 million to $8.0 million from an adjusted net loss of $3.8 million for the 2009 fiscal year. The main reason for the increase in the adjusted net loss is a $5.4 million increase in expenses related to the corporate reorganization that was implemented on September 30, 2010.
Cash and Capital Management
The debt/total capitalization ratio is 66.6% as at September 30, 2010, compared to 65.1% at the same date the previous fiscal year, an increase of 1.5%. On October 7, 2010, Gaz Métro issued units for net proceeds of approximately $100 million. If the units had been issued on September 30, 2010, the debt/total capitalization ratio would have been 63.0%. Gaz Métro therefore restored its capital structure to a level that is more comparable with historical levels before the acquisition of GMP in 2007, which was entirely financed with debt.
Development Projects
In coming months, Gaz Métro has a number of projects that flow from its complementary and inclusive energy vision, which is relying on the compatibility of energy and environment. A few of these projects are described below.
Wind power: After receiving a decree from the government of Quebec, Gaz Métro and its partner, Boralex Inc. are proceeding with the development of the two Seigneurie de Beaupré wind power projects in accordance with the planned timetable. The specific steps planned to carry out the projects are applying for construction permits, signing final agreements with Enercon Canada Inc., the turbine and maintenance services supplier, signing a final agreement for the civil engineering work and arranging financing. The private land of the Séminaire de Québec, where the consortium's projects will be located, gives them a distinct advantage. The site is not close to any urban or residential centres, thereby making the visual and noise impacts almost non-existent for the neighbouring communities. The projects, which will have total installed capacity of 272 megawatts, should be commissioned around December 2013.
Apart from the two wind farms, the Seigneurie Project may include the development, construction and operation of other wind power projects on the private land of the Seigneurie de Beaupré.
Smart electricity distribution system in Vermont: As part of the U.S. federal government stimulation measures, GMP received a grant to finance and implement a state-wide smart electricity distribution system in Vermont. The assistance will finance part of the investment GMP will make over the next three years. This three-year project consists of, among other activities, replacing the current customer information system, purchasing and installing smart meters for customers and participating in dynamic rates pilots with other electricity distributors in Vermont. GMP and the other Vermont electricity distributors have started implementation of this major project. GMP's management considers that success of this project could both transform GMP's customer relationships and the way GMP manages operations, by incorporating advanced technology into its operations.
Natural gas for the transportation industry: Gaz Métro is getting involved in the development of natural gas for the transportation sector, specifically freight carriers. The most promising market is heavy transportation, for which natural gas, in both compressed and liquefied forms, is a real alternative to diesel fuel. The road transportation sector is responsible for 40% of greenhouse gas (GHG) emissions in Quebec, a significant portion of which is caused by trucks. Vehicles that use natural gas emit approximately 25% less GHG than diesel fuel and other petroleum products. Gaz Métro Transportation Solutions, L.P. (Transportation Solutions), an indirect subsidiary of Gaz Métro incorporated for this market, signed an agreement with Transport Robert 1973 Ltée in the summer of 2010. The agreement includes conditions for supplying trucks with liquefied natural gas (LNG). Transportation Solutions will have to build the facilities required to supply trucks from three refuelling stations. The parties' intention is that the facilities will be built by the spring of 2011. As Gaz Métro already has the liquefaction equipment at the natural gas liquefaction, storage and re-gasification plant (LSR plant), the investments required would be limited to the refuelling stations and the tanks for transporting LNG and the modifications to the plant's loading dock.
Biomethanation: Gaz Métro believes that waste reclamation is a promising solution to Quebec's energy needs and would reduce GHG emissions. Gaz Métro is therefore very receptive to the government of Quebec's biomethanation program, which aims to divert organic residues from landfill sites for reclamation purposes. Gaz Métro intends to play a key role in ensuring these initiatives are economically viable, in particular by providing access to its distribution system for moving biogas. Gaz Métro wants to facilitate the short-term development of this activity and is working with various partners to define the technical and economic terms for injecting this new natural gas supply source into its system, while continuing to provide reliable safe service.
Shale gas: Gaz Métro is presently talking to some natural gas producers active in the St. Lawrence Valley about moving natural gas that would be extracted from wells to consumption markets. Last May 26, Gaz Métro filed an application with the Régie de l'énergie (Régie) to have the rate principles authorized for the new services related to this activity. Public hearings before the Régie were held in November 2010 and a decision is expected from the Régie no later than January 2011.
Gaz Métro's Quarterly Results
Given the seasonal nature of its operations and the normally low demand for energy during the summer months, Gaz Métro has historically incurred a loss during the fourth quarter of its fiscal year. The adjusted net loss5 for the fourth quarter of the 2010 fiscal year is $37.9 million, compared to $36.7 million for the corresponding period the previous fiscal year. The adjusted net loss per unit is $0.31 in the fourth quarter of the 2010 fiscal year, i.e. remaining at the same level as in the fourth quarter of the previous fiscal year.
Gaz Métro's segment results - Net income (net loss)
| 3 months ended September 30 (1) | Fiscal years ended September 30 | ||||||||||||
| (in millions of dollars) | 2010 | 2009 | Variation | 2010 | 2009 | Variation | |||||||
| Energy distribution | |||||||||||||
| Gaz Métro-QDA | (42.4) | (41.3) | (1.1) | 115.9 | 118.1 | (2.2) | |||||||
| VGS and GMP | 5.7 | 3.6 | 2.1 | 19.7 | 22.4 | (2.7) | |||||||
| Financing costs of investments in this segment (2) | (1.1) | (1.4) | 0.3 | (4.0) | (4.9) | 0.9 | |||||||
| Adjusted net income (net loss) | (37.8) | (39.1) | 1,3 | 131.6 | 135.6 | (4,0) | |||||||
| Natural Gas Transportation | |||||||||||||
| TQM, PNGTS and Champion Pipe Line Corporation Ltd | 2.9 | 2.0 | 0,9 | 20.7 | 22.8 | (2.1) | |||||||
| Financing costs of investments in this segment (2) | (1.1) | (1.3) | 0,2 | (3.9) | (4.4) | 0.5 | |||||||
| Adjusted net income | 1.8 | 0.7 | 1,1 | 16.8 | 18.4 | (1.6) | |||||||
| Natural Gas Storage | |||||||||||||
| Intragaz Group (Intragaz) | 2.0 | 1.7 | 0,3 | 7.1 | 6.6 | 0.5 | |||||||
| Financing costs of investments in this segment (2) | (0.4) | (0.6) | 0,2 | (1.7) | (2.0) | 0.3 | |||||||
| Adjusted net income | 1.6 | 1.1 | 0,5 | 5.4 | 4.6 | 0.8 | |||||||
| Energy services and other | |||||||||||||
| Energy, water and fibre optic | 2.1 | 2.0 | 0,1 | 8.4 | 6.7 | 1.7 | |||||||
| Financing costs of investments in this segment (2) | (0.5) | (0.6) | 0,1 | (1.6) | (2.0) | 0.4 | |||||||
| Adjusted net income | 1.6 | 1,4 | 0,2 | 6.8 | 4.7 | 2.1 | |||||||
| Corporate Affairs and other | (5.1) | (0.8) | (4,3) | (8.0) | (3.7) | (4.3) | |||||||
| Adjusted net income (net loss) | (37.9) | (36.7) | (1,2) | 152.6 | 159.6 | (7.0) | |||||||
| Non-monetary impact related to future income taxes (3) | 27.5 | 0.4 | 27,1 | 26.1 | (1.1) | 27.2 | |||||||
| Net income (net loss) | (10.4) | (36.3) | 25,9 | 178.7 | 158.5 | 20.2 |
|||||||
| (1) | Operating results for interim periods are not necessarily representative of the results that are expected for the fiscal year. Seasonal variations in temperatures have an impact on the Partnership's interim financial results, particularly in the fourth quarter of the fiscal year when Gaz Métro has always had a loss because of the normally low demand for energy during the summer months. | |
| (2) | Financial expenses incurred by the Partnership to finance investments in the subsidiaries, joint ventures, and companies subject to significant influence of each segment. | |
| (3) | Adjustment to future income taxes that the Partnership will no longer have to assume in periods after September 30, 2010 because of the corporate reorganization. Future income taxes are related to Gaz Métro's subsidiaries and joint ventures formed as limited partnerships that do not qualify as rate-regulated enterprises as defined in the Handbook of the Canadian Institute of Chartered Accountants. |
|
Conference call
Valener will hold a telephone conference with financial analysts on Friday, November 19, 2010, at 11:00 a.m. (Eastern time) to discuss its results for the period from June 15 to September 30, 2010 and the results for Gaz Métro's 2010 fiscal year covering the period from October 1, 2009 to September 30, 2010.
Pursuant to an administration and management support agreement entered into between Valener and Gaz Métro on September 30, 2010, Gaz Métro acts as manager of Valener. To that effect, Sophie Brochu, President and Chief Executive Officer, and Pierre Despars, Executive Vice President, Corporate Affairs and Chief Financial Officer of Gaz Métro inc., Gaz Métro's general partner, will be the speakers. This will be followed by a question period.
The conference can be accessed live by dialling 647-427-7450 or toll-free 1-888-231-8191. It will also be Webcast on Valener's Web site (www.valener.com) in the Investors section under "Events and Presentations".
Media and other interested individuals are invited to listen in. Speakers will be available after the conference call for interviews and to answer questions from the media.
Rebroadcasts can be accessed for 30 days by telephone at 416-849-0833 or toll-free at 1-800-642-1687 (access code: 22226808), and for 90 days on Valener's Web site.
Valener Overview
Valener is a new publicly listed corporation which holds an economic interest of approximately 29% in Gaz Métro. Valener therefore has a stake in the energy industry and benefits from the diversified profile of Gaz Métro, both geographically and by business segment. Valener has also been granted an option to acquire a 24.5% indirect interest in the wind power projects jointly developed directly or indirectly by Gaz Métro and Boralex on the private property of the Seigneurie de Beaupré. Valener may also pursue its own development projects and acquisition strategies subject to a non-competition undertaking in favour of Gaz Métro and to applicable limitations under its credit facility. Valener's common shares are listed on the Toronto Stock Exchange under the symbol "VNR". www.valener.com
Gaz Métro Overview
With over 3.6 billion in assets, Gaz Métro is Québec's leading natural gas distributor. Operating in this regulated industry for over 50 years, Gaz Métro has become the trusted energy provider to some 182,000 customers in Québec and 138,000 customers in Vermont while developing the skills and expertise needed to diversify beyond natural gas. Gaz Métro's prudent growth strategy has been marked by the successful entry into electricity distribution in Vermont and development of wind power projects in Québec. Offering historically strong and stable distributions and showing a competitive spirit, Gaz Métro is committed to its customers, Partners, employees and the community. 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 Métro inc. (GMi), in its capacity as general partner of Gaz Métro, acting as manager of Valener (the management of the manager), and is based on information currently available to the management of the manager and on assumptions with respect to future events. The words "plans", "expects", "estimates", "forecasts", "intends", "anticipates" or "believes", or similar expressions, including the negative of these terms and future or conditional forms, often identify forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties and other factors outside management of the manager's control. A number of factors could cause actual results of Gaz Métro and Valener to differ materially from the results discussed in the forward-looking statements, including, but not limited to, terms of decisions rendered by regulatory bodies, general economic conditions, the competitiveness of natural gas in relation to other energy sources, the reliability of natural gas supplies, the integrity of the natural gas distribution system, exchange rate fluctuations and other factors described under sections entitled "Risk factors pertaining to the Company's activities" and "Risk factors pertaining to Gaz Métro activities" in Valener's Management's Discussion and Analysis for the fiscal year ended September 30, 2010 and in Gaz Métro and Valener's disclosure filings. Although the forward-looking statements contained herein are based upon what the management of the manager believes to be reasonable assumptions, including assumptions to the effect that no unforeseen changes in the legislative and regulatory framework of energy markets in Quebec and 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, and that Gaz Métro will be able to continue distributing substantially all of its net income (but excluding non-recurring items), that the Seigneurie option will be exercised, that the Seigneurie project will be completed within the contemplated timeframe and parameters and other assumptions in Valener's Management's Discussion and Analysis for the fiscal year ended September 30, 2010, 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 not to place undue reliance on these forward-looking statements.
Non-GAAP financial measures
In the view of GMi, the general partner of Gaz Métro, acting as manager of Valener, certain "adjusted" indicators, such as adjusted net income and adjusted net income per unit of Gaz Métro provide readers with information it considers useful for analyzing the financial results of both Valener and Gaz Métro. However, they are not standardized in accordance with Canadian generally accepted accounting principles (GAAP) and should not be considered in isolation or as substitutes for other performance measures that are in accordance with GAAP. The results obtained might not be comparable with similar indicators used by other issuers and should therefore only be considered as complementary information.
| 1 | Adjusted net income excludes a favourable non-monetary adjustment of $26.1 million related to future income taxes for the 2010 fiscal year and an unfavourable non-monetary adjustment of $1.1 million for the 2009 fiscal year. | |
| 2 | Net of financing costs | |
| 3 | Adjusted net income excludes non-monetary adjustments related to future income taxes. | |
| 4 | The adjusted net income (net loss) excludes the non-monetary adjustments related to future income taxes. | |
| 5 | The adjusted net loss excludes non-monetary adjustments related to future income taxes. | |
GAZ MÉTRO'S HIGHLIGHTS
For fiscal years ended September 30
| (in millions of dollars, except for unit data which is in dollars) | 2010 | 2009 | |||||||
| CONSOLIDATED INCOME AND CASH FLOWS | |||||||||
| Revenues | $ | 2,020.4 | $ | 2,249.2 | |||||
| Gross margin | $ | 760.0 | $ | 791.3 | |||||
| Income before interest and financial expenses, income taxes and amortization | $ | 448.5 | $ | 482.3 | |||||
| Net income | $ | 178.7 | $ | 158.5 | |||||
| Adjusted net income (1) | $ | 152.6 | $ | 159.6 | |||||
| Cash flows related to operating activities (before change in non-cash working capital items) | $ | 392.0 | $ | 442.0 | |||||
| Purchases of property, plant and equipment | $ | 144.1 | $ | 151.9 | |||||
| Variations in deferred charges and credits and intangible assets | $ | 89.0 | $ | 129.6 | |||||
| Net income per unit (basic and diluted) | $ | 1.48 | $ | 1.32 | |||||
| Adjusted net income per unit (basic and diluted) (1) | $ | 1.27 | $ | 1.32 | |||||
| Distributions paid per unit | $ | 1.55 | $ | 1.24 | |||||
| Return on average equity | 17.8 | % | 15.5 | % | |||||
| Return on adjusted average equity (1) | 14.8 | % | 15.2 | % | |||||
| Weighted average number of units outstanding (in millions) | 120.5 | 120.5 | |||||||
| CONSOLIDATED NORMALIZED NATURAL GAS VOLUMES (in millions of cubic metres) | |||||||||
| MARKETS | |||||||||
| Industrial | 2,698 | 2,489 | |||||||
| Commercial | 2,307 | 2,200 | |||||||
| Residential | 666 | 689 | |||||||
| Total | 5,671 | 5,378 | |||||||
| OTHER INFORMATION | |||||||||
| Authorized rate of return on deemed common equity (Quebec distribution activity) | 9.20 | % | 8.94 | % | |||||
| Realized rate of return on deemed common equity (Quebec distribution activity) (3) | 10.32 | % | 9.89 | % | |||||
| Credit and Stability ratings | |||||||||
| First mortgage bonds (S&P/DBRS) (2) | A/A | A/A | |||||||
| Commercial paper (S&P/DBRS) (2) | A-1(low)/R-1(low) | A-1(low)/R-1(low) | |||||||
| Stability of distributions (S&P/DBRS) (4) | N/A | SR-2/STA-2(middle) | |||||||
| Market prices on Toronto Stock Exchange: (4) | |||||||||
| High | $ | 17.24 | $ | 16.19 | |||||
| Low | $ | 15.25 | $ | 10.63 | |||||
| Close | $ | 16.87 | $ | 15.81 | |||||
| Public ownership in Partnership (non-controlling Partners) | 29.0 | % | 29.0 | % | |||||
| Interest coverage on long-term debt over a period of 12 months (times) | 2.54 | 2.52 | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||
| Total assets | $ | 3,666.6 | $ | 3,306.8 | |||||
| Total debt | $ | 1,858.6 | $ | 1,769.8 | |||||
| Partners' equity | $ | 932.6 | $ | 949.6 | |||||
| Partners' equity per unit | $ | 7.74 | $ | 7.88 | |||||
| (1) | Adjusted to exclude the $26.1 million favourable non-monetary adjustments to future income taxes in the 2010 fiscal year ($1.1 million unfavourable in 2009). | |
| (2) | Through its General Partner, Gaz Métro inc. | |
| (3) | The 2010 actual rate of return is subject to the approval of the Régie de l'énergie and the 2009 actual rate of return has been approved following the Régie de l'énergie's decision in July 2010. | |
| (4) | Following the reorganization of the public ownership of Gaz Métro in a new corporation, the units no longer being listed on the stock exchange, DBRS discontinued the stability rating on October 1, 2010. | |
For further information:
| Investors and analysts | Media | |
| Caroline Warren | Marie-Noëlle Cano | |
| Investor Relations | Media and Public Relations | |
| 514-598-3324 www.valener.com |
514-598-3449 www.valener.com |
Share this article