January 29, 1999
Ltd., today announced income applicable to common shares of $12.3
million or $0.18 per common share for the three months ended
December 31, 1998, compared to $30.9 million or $0.45 per common
share for the comparable period last year. The decline in
earnings was due primarily to the significantly warmer than normal
weather experienced this year.
The Board of Directors declared the quarterly dividends on all
classes of preference shares payable on April 1, 1999, to
shareholders of record on March 4, 1999.
Pref. Group 1, Series A & B $1.375 Pref. Group 1, Series C $1.25 Pref. Group 2, Series C $0.403125
The Consumers' Gas Company Ltd., Toronto (operating as Enbridge
Consumers Gas), is a wholly-owned subsidiary of Enbridge Inc. of
Calgary. Enbridge Inc. ("Enbridge"), is a leader in energy
transportation, distribution and services. As a transporter of
energy, Enbridge operates in Canada and the U.S. the world's
longest crude oil and liquids pipeline system, is involved in
liquids marketing and international energy projects, and has a
growing involvement in natural gas transmission. As a distributor
of energy, Enbridge owns and operates Canada's largest natural gas
distribution company which provides gas and retail services in
Ontario, Quebec and New York State, and is involved in the
generation and distribution of electricity. In addition, Enbridge
provides retail energy products and services to a growing number
of Canadian and U.S. markets. Enbridge employs more than 5,000
people in Canada, the U.S. and South America.
Enbridge Inc.'s common shares trade on the Toronto and Montreal
stock exchanges in Canada under the symbol "ENB". In the United
States the shares trade on The NASDAQ National Market under
"ENBRF".
THE CONSUMERS' GAS COMPANY LTD. operating asENBRIDGE CONSUMERS GAS Financial and Operating Highlights For the three months ended December 31-------------------------------------------------------------- 1998 1997--------------------------------------------------------------Financial (expressed in thousands except per share amounts) Gas sales $ 324,709 $ 409,313 Transportation of gas for customers 43,731 23,286 Other revenue 71,465 64,786 ------------------------ Total revenue 439,905 497,385 Gas costs 210,671 255,036 ------------------------ Net revenue $ 229,234 $ 242,349 ------------------------ ------------------------ Net income $ 12,331 $ 30,971 Income applicable to common shares $ 12,276 $ 30,900 Earnings per common share $ 0.18 $ 0.45 Long term interest coverage ratio(1) 1.9 2.5 Net tangible asset coverage ratio of long term debt Before deferred taxes 1.6 1.7 After deferred taxes 1.6 1.6 Operating Volumetric statistics (millions of cubic metres) Gas sales 1,394 2,122 Transportation of gas for customers 1,342 1,043 ------------------------ Total distribution volume 2,736 3,165 ------------------------ ------------------------ Number of active customers 1,417,208 1,368,346 Degree day deficiency(2) Actual 1,157 1,306 Forecast based on normal weather 1,362 1,408 Preference Share Information TSE closing price of preference shares CGT.PR.A - Group 1, Series A, 5 1/2 percent $ 98.00 $ 96.00 CGT.PR.B - Group 1, Series B, 5 1/2 percent $ 98.00 $ 99.95 CGT.PR.H - Group 2, Series C, 6.45 percent $ 25.45 $ 26.05--------------------------------------------------------------
Note 1: Based on the 12 month period then ended.
Note 2: Degree day deficiency is a measure of coldness which is
indicative of volumetric requirements of natural gas utilized for
heating purposes in all markets. It is calculated by accumulating
from October 1 the total number of degrees each day by which the
daily mean temperature falls below 18 degrees Celsius. The
figures given are those accumulated in the Toronto area.
The Consumers' Gas Company Ltd. Consolidated Statements of Income (unaudited) (note 1) (thousands of dollars except per share amounts)------------------------------------------------------- Three months ended December 31 ------------------------------------------------------- 1998 1997-------------------------------------------------------Gas sales $324,709 $409,313 Gas costs 210,671 255,036 ----------------------------Gas sales margin 114,038 154,277Transportation of gas for customers 43,731 23,286 ----------------------------Net gas distribution revenue 157,769 177,563Other revenue 71,465 64,786 ---------------------------- 229,234 242,349 ----------------------------Expenses Operation and maintenance 86,568 82,131 Depreciation 51,888 47,420 Municipal and other taxes 11,372 9,316 ---------------------------- 149,828 138,867 ----------------------------Income before undernoted items 79,406 103,482Financial charges Interest on long term debt 41,554 39,835 Other interest and finance costs 6,741 3,240 Dividends on Group 2 preference shares 806 806 Dividends on Group 3 preference shares - 715 Interest capitalized (562) (1,275) ---------------------------- 48,539 43,321 ----------------------------Income before income taxes 30,867 60,161Income taxes Current 15,408 19,596 Deferred 3,128 9,594 ---------------------------- 18,536 29,190 ----------------------------Net income 12,331 30,971Dividends on Group 1 preference shares 55 71 ----------------------------Income applicable to common shares $ 12,276 $ 30,900 ---------------------------- ----------------------------Earnings per common share (note 2) $ 0.18 $ 0.45 -----------------------------------------------------------------------------------
Note 1: Due to the seasonal nature of the Company's operations
and the Company's rate design which emphasizes the recovery of
higher levels of allocated costs of service during the heating
season, the amounts shown for the three month period are not
necessarily indicative of the results for the full fiscal year.
Note 2: Earnings per common share amounts have been computed by
using the weighted average number of common shares outstanding
during the period being 67.9 million for the three month periods
ended December 31, 1998 and 1997.
Note 3: On December 15, 1998, the Company's parent company
contributed surplus in the amount of $65 million.
The Consumers' Gas Company Ltd. Consolidated Balance Sheets (unaudited) (thousands of dollars) ------------------------------------------------------------ December 31 September 30------------------------------------------------------------ 1998 1998------------------------------------------------------------Assets Current assets Cash and short term investments $ 476 $ 51,216 Accounts receivable 310,577 215,045 Materials and supplies 35,652 34,492 Gas in storage 311,186 357,820 Income taxes recoverable 13,176 40,076 Deferred income taxes 6,194 9,363 Prepaid expenses 93,447 15,059 ------------------------------- 770,708 723,071 ------------------------------- Property, plant and equipment 4,275,144 4,208,433 Accumulated depreciation 1,156,203 1,114,458 ------------------------------- 3,118,941 3,093,975 ------------------------------- Other assets and deferred charges 120,221 111,446 ------------------------------- $4,009,870 $3,928,492 ------------------------------------------------------------------------------------------- Liabilities and shareholders' equity Current liabilities Bank overdraft $ 1,084 $ 20,003 Loans and notes payable 439,516 385,058 Accounts payable 342,756 309,088 Dividends payable 20,563 21,278 Preference shares 50,000 100,000 Current portion of long term debt 98,390 48,390 ------------------------------- 952,309 883,817 ------------------------------- Long term debt 1,897,002 1,946,320 ------------------------------- Deferred credits 47,072 42,100 ------------------------------- Deferred revenue 9,822 10,054 ------------------------------- Deferred income taxes 4,347 4,515 ------------------------------- Shareholders' equity Capital stock Group 1 preference shares 3,887 3,962 Common shares 333,420 333,420 Contributed surplus (note 3) 115,208 50,208 Retained earnings 646,803 654,096 ------------------------------- 1,099,318 1,041,686 ------------------------------- $4,009,870 $3,928,492 -------------------------------------------------------------------------------------------
Note 4: The consolidated financial statements and related notes
have been prepared in accordance with generally accepted
accounting principles applicable to interim periods; consequently
they do not include all generally accepted accounting disclosures
required for annual consolidated financial statements. For more
complete information these consolidated financial statements
should be read in conjunction with the consolidated financial
statements and notes contained in the Company's 1998 Annual Review
and Financial Statements.
Note 5: Certain of the comparative figures have been reclassified
to conform with the presentation adopted in the current year.
The Consumers' Gas Company Ltd.Consolidated Statements of Cash Flows (unaudited)(thousands of dollars)-------------------------------------------------------------- Three months ended December 31-------------------------------------------------------------- 1998 1997--------------------------------------------------------------Cash from operating activities Net income $ 12,331 $ 30,971 Charges not affecting cash Depreciation 51,888 47,420 Deferred income taxes 3,128 9,594 Amortization of deferred charges and other items 853 635 ------------------------ 68,200 88,620 Change in non-cash working capital (72,920) (159,341) ------------------------ (4,720) (70,721) ------------------------Financing activities Loans and notes payable 54,458 137,400 Redemption of Group 3 preference shares (50,000) - Issue of long term debt 682 277,045 Long term debt repayments - (186,039) Deferred credits 4,972 - Deferred revenue (232) - Redemption of Group 1 preference shares (75) - Dividends paid, Group 1 preference shares (55) (71) Dividends paid, common shares (19,703) (18,638) Contributed surplus 65,000 - Change in non-cash working capital 19,228 - ------------------------ 74,275 209,697 ------------------------Investing activities Additions to property, plant and equipment (76,854) (103,068) Additions to other assets and deferred charges (9,628) (5,227) Other, net 7 1,053 Change in non-cash working capital (14,901) (24,351) ------------------------ (101,376) (131,593) ------------------------Increase (decrease) in cash (31,821) 7,383Cash, beginning of period 31,213 (16,076) ------------------------Cash, end of period $ (608) $ (8,693)----------------------------------------------------------------------------------------------------------------------------
For the purpose of this statement, cash is defined as cash and
short term investments net of bank overdraft.