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Press release from Marketwire

Canadian Utilities Reports Second Quarter Earnings Up $3.0 Million to $76.2 Million

Friday, July 30, 2010

Canadian Utilities Reports Second Quarter Earnings Up $3.0 Million to $76.2 Million08:19 EDT Friday, July 30, 2010CALGARY, ALBERTA--(Marketwire - July 30, 2010) - Canadian Utilities Limited (TSX:CU), (TSX:CU.X)Canadian Utilities today reported earnings of $76.2 million ($0.60 per share) for the three months ended June 30, 2010, compared to $73.2 million ($0.58 per share) for the same period in 2009. Adjusted Earnings (1) in the second quarter were $76.3 million ($0.61 per share), compared to $73.5 million ($0.59 per share) in 2009.Earnings for the six months ended June 30, 2010, were $224.2 million ($1.78 per share), compared to $218.6 million ($1.74 per share) for the same period in 2009. Adjusted Earnings (1) for the six months were $228.3 million ($1.82 per share), compared to $221.8 million ($1.77 per share) in 2009.Adjusted Earnings in the second quarter of 2010 increased in the Energy Segment primarily due to higher spark spreads in the Alberta electricity market, partially offset by decreased storage revenues due to the timing and demand for natural gas storage.Adjusted Earnings in the first half of 2010 increased primarily as a result of continued strength in the Utilities Segment due to higher infrastructure investment in the regulated rate base.RECENT DEVELOPMENTS -- In April, ATCO Power announced its new 86 megawatt Karratha generating station in Western Australia went into full commercial operation ahead of schedule, 16 months after the environmentally progressive project was first announced. -- In May, CU Inc. announced the filing of a preliminary base shelf prospectus to issue up to $1.7 billion of debentures in tranches as required over the next 25 months. The proceeds will be used to fund utility capital expenditures, to repay existing debt and for other general corporate purposes. Financial Summary and Reconciliation For the Three Months For the Six Months of Adjusted Earnings Ended June 30 Ended June 30 -------------------------------------------------------------------------- 2010 2009 2010 2009 -------------------------------------------------------------------------- -------------------------------------------------------------------------- ($ Millions except per share data) Unaudited Reported Earnings 76.2 73.2 224.2 218.6 ATCO Power Mark-to- Market Adjustment 0.1 0.3 4.1 3.2 -------------------------------------------------------------------------- Adjusted Earnings (1) 76.3 73.5 228.3 221.8 -------------------------------------------------------------------------- -------------------------------------------------------------------------- Earnings Per Share 0.60 0.58 1.78 1.74 -------------------------------------------------------------------------- -------------------------------------------------------------------------- Adjusted Earnings Per Share (1) 0.61 0.59 1.82 1.77 -------------------------------------------------------------------------- -------------------------------------------------------------------------- Revenues 648.6 602.7 1,397.2 1,371.3 -------------------------------------------------------------------------- -------------------------------------------------------------------------- Funds Generated By Operations (1) (2) 157.8 136.2 371.0 382.8 -------------------------------------------------------------------------- -------------------------------------------------------------------------- (1) These measures are not defined by Generally Accepted Accounting Principles and may not be comparable to similar measures used by other companies. (2) This measure is cash flow from operations before changes in non-cash working capital. Revenues for the three and six months ended June 30, 2009, included ATCO Frontec, which, as a result of the ATCO Structures & Logistics (ASL) Transaction in the third quarter of 2009, is no longer consolidated. Since then, Canadian Utilities' investment in ASL is accounted for on an equity basis.The increase in Revenues, after removing the impact of the ASL Transaction, is primarily due to the recording of revenues associated with the lease of the first and second units of ATCO Power's Karratha generating plant in the first and second quarters, respectively, of 2010. Revenues also increased due to higher prices in the Alberta electricity market.The increase in Funds Generated by Operations for the three months ended June 30, 2010 is primarily due to higher earnings, as well as regulatory deferral amounts which vary from quarter to quarter and are, therefore, not comparable or indicative of funds generated by operations on an annual basis, partially offset by availability penalties paid by Alberta Power (2000) due to a planned outage in the Battle River generating plant.The decrease in Funds Generated by Operations for the six months ended June 30, 2010 is primarily due to availability penalties paid by Alberta Power (2000) due to a planned outage in the Battle River generating plant, partially offset by higher earnings.Canadian Utilities' consolidated financial statements and management's discussion and analysis of financial condition and results of operations for the three and six months ended June 30, 2010, will be available on Canadian Utilities' website (www.canadian-utilities.com) or via SEDAR (www.sedar.com) or can be requested from the Company.Alberta-based Canadian Utilities Limited, an ATCO company, with more than 5,700 employees and assets of approximately $9.2 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 www.canadian-utilities.com.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.FOR FURTHER INFORMATION PLEASE CONTACT: Canadian Utilities Limited B.R. (Brian) Bale Senior Vice President & Chief Financial Officer (403) 292-7502 www.canadian-utilities.com