Westcoast Energy Announces Highest Profit on Record.Business Editors VANCOUVER Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , B.C.--(BUSINESS WIRE)--Feb. 21, 2001 Westcoast Energy Inc. (Westcoast) (NYSE NYSE See: New York Stock Exchange :WE) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :W.) announced record net income applicable to common shares for the year ended December December: see month. 31, 2000 of $340 million, compared with $222 million for 1999, an increase of 53%. Following record third quarter earnings, earnings per common share were $1.09 and $0.38 for the three months ended December 31, 2000 and 1999 respectively, reflecting another outstanding performance in the fourth quarter of 2000. A solid performance from the British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography Pipeline and Field Services divisions and significantly improved results from Engage Energy and Union Energy contributed to the strong 2000 fourth quarter results. Weather was colder than normal in the fourth quarter of 2000, which favourably Adv. 1. favourably - showing approval; "he reviewed the play favorably" favorably favourably U.S. favorably adverb 1. impacted the Company's results, in addition to the favourable impact of further corporate income tax rate reductions. Earnings per common share for the three months ended December 31, 2000 normalized for weather and the impact of tax rate reductions were $0.78 compared with $0.43 for the same period in 1999. For the full twelve months, earnings per common share were $2.92 in 2000, compared with $1.95 in 1999. Weather normalized earnings Normalized Earnings 1. Earnings adjusted for cyclical ups and downs in the economy. 2. On the balance sheet, earnings adjusted to remove unusual or one-time influences. Notes: An example would be removing a land sale in which a large capital gain was realized. per common share were $2.96 and $2.10 for 2000 and 1999, respectively. Included in the 2000 earnings per common share is $0.40 as a result of implementing the substantively sub·stan·tive adj. 1. Substantial; considerable. 2. Independent in existence or function; not subordinate. 3. Not imaginary; actual; real. 4. enacted corporate income tax rate reductions. Results for 1999 include the sale of Centra Gas Manitoba Manitoba (mănĭtō`bə), province (2001 pop. 1,119,583), 250,934 sq mi (650,930 sq km), including 39,215 sq mi (101,580 sq km) of water surface, W central Canada. of $0.52 per common share. Adjusting for these items result in earnings per common share of $2.56 for 2000 compared with $1.58 for 1999, an increase of 62%. Westcoast's earnings in 2000 were impacted by continuing significantly improved results from the energy marketing division and Union Energy, higher contributions from new pipeline projects, higher contributions from international projects and the favourable impact from reductions in corporate income tax rates. "I am pleased to report significantly better earnings from our operations over the last three quarters compared with the previous year," said Michael Phelps For the American biophysicist, see . Michael Fred Phelps II (born June 30, 1985 in Baltimore, Maryland) is an American swimmer and World Record Holder in several events. , Chairman and Chief Executive Officer. "We will continue to concentrate on the steady improvement of our operations combined with an ongoing focus on our risk management activities." "I am particularly pleased with the turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. in our services businesses which generated an improvement of $77 million over last year. In particular, Engage Energy contributed $26 million to net income this year compared with $5 million last year," noted Mr. Phelps Phelps may refer to: In places in the US:
"In addition, the completion of many of our major capital projects is beginning to show on our earnings statement," said Mr. Phelps. "That, along with strong continued performance from our Transmission and Field Services and Gas Distribution businesses, resulted in this year's record earnings." "It has been a good year for Westcoast Energy and its shareholders," he added. "Our shareholders have benefited from a total return of 62% on their investment over the past year and an 18% return per year over the past five years." Recognizing the solid year of results, the Board of Directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a quarterly dividend of $0.34 per common share payable on March 31, 2001, to shareholders of record on March 9, 2001. This represents an increase of 6.25% in the indicated annual dividend. "The Board has concluded that it wishes to continue its policy of modest and steady increases in dividends when warranted by earnings and the Company's overall financial position. Nonetheless, the Board places primary emphasis on the importance of generating funds internally to seed a list of high-quality investment opportunities such as expansion at Maritimes & Northeast “Northeastern” redirects here. For the Boston college, see Northeastern University, Boston. Northeast or north east is the ordinal direction halfway between north and east. It is the opposite of southwest. See boxing the compass. Pipeline, further development of independent power projects, increased storage and transmission capacity at Union Gas, and British Columbia facilities expansion," concluded Mr. Phelps. Westcoast Energy Inc. (TSE: W; NYSE: WE) headquartered in Vancouver, British Columbia, is a leading North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. energy company with assets of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $15 billion. The Company's interests include natural gas gathering, processing, transmission, storage and distribution, as well as power generation, international energy businesses, and financial, information technology and energy services businesses. More information is available on the Company's Web site at www.westcoastenergy.com
Year Ending
December 31 ($million)
2000 1999
------------------------------
Consolidated Revenue 8,955 6,265
Net Income to Common 340 222
Earnings Per Share $2.92 $1.95
Operating Cash Flow 641 499
Fourth Quarter Results
3 Months Ended
December 31 ($million)
2000 1999
------------------------------
Consolidated Revenue 3,310 1,675
Net Income to Common 128 44
Earnings Per Share $1.09 $0.38
Operating Cash Flow 178 122
FOURTH QUARTER AND YEAR-END year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. RESULTS Fourth Quarter Results Net income applicable to common shares for the three months ended December 31, 2000 was $128 million, compared with $44 million for the same period in 1999. Earnings per common share for the three months ended December 31, 2000 were $1.09, compared with $0.38 for the same period in 1999. The fourth quarter results in 2000 were favourably impacted by colder than normal weather, compared with the warmer than normal weather experienced in the fourth quarter of 1999. Weather increased earnings by $0.05 and reduced earnings by $0.05 for the three months ended December 31, 2000 and 1999, respectively. After adjusting for weather and the corporate income tax rate reductions, earnings per common share for the three months ended December 31, 2000 and 1999 were $0.78 and $0.43, respectively. Earnings in the fourth quarter of 2000 reflect the solid performance from the British Columbia Pipeline and Field Services divisions and the turnaround of Union Energy, for which 1999 fourth quarter results reflected certain unusual items related to the start-up Start-up The earliest stage of a new business venture. of the business. The Federal Budget in October October: see month. also provided a further corporate income tax rate reduction, which provided a contribution of $30 million ($0.26 per common share) in the fourth quarter of 2000. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. was $178 million for the three months ended December 31, 2000, compared with $122 million for the same period in 1999. Consolidated Operations Net income applicable to common shares was $340 million for the year ended December 31, 2000, compared with $222 million in 1999. Earnings per common share were $2.92 for the year ended December 31, 2000, compared with $1.95 in 1999. Excluding the impact of weather, earnings per common share were $2.96 for the year ended December 31, 2000 compared with $2.10 in 1999. Normalizing for weather, the $0.40 per share impact of the 2000 corporate income tax rate reductions and the $0.52 per share gain on the 1999 sale of Centra Gas Manitoba, earnings per common share were $2.56 and $1.58 for the years ended December 31, 2000 and 1999, respectively. The 2000 results showed continuing improved results from Engage Energy, reflecting a strong performance by the gas and power trading operations, and from Union Energy. Results for 2000 reflect higher contributions from new pipeline projects and strong contributions from the British Columbia Pipeline and Field Services divisions, which benefited from increased throughputs and higher natural gas prices. Fiscal 2000 results also reflect higher contributions from our international projects and growth in the number of natural gas distribution customers. Divestitures in 2000 include the sale of the Company's interests in the EastCoast Power Project in Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , a 51% interest in NGX NGX Natural Gas Exchange Inc. (Canada) NGX Next Generation X Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of Inc. (NGX) and the Liberty Electric Power Project, which provided a total after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. gain of $15 million or $0.13 per common share. Fiscal 2000 results were also favourably impacted by the contribution of $46 million or $0.40 per common share arising from reductions in corporate income tax rates. As a result of the Federal and Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. corporate income tax rate reductions announced in the first and fourth quarters of 2000, the deferred income tax assets and liabilities have been adjusted to reflect the current income tax rates and the change is included in earnings in the period that the rate reduction is substantively enacted. Results for 1999 include the after-tax gain on the sale of Centra Gas Manitoba of $59 million. Consolidated operating cash flow was $641 million for the year ended December 31, 2000, compared with $499 million in 1999. Inclusive of inclusive of prep. Taking into consideration or account; including. non-cash working capital changes, consolidated operating cash flow was $573 million for the year ended December 31, 2000, compared with $456 million in 1999. TRANSMISSION & FIELD SERVICES The contribution to net income applicable to common shares from the Transmission & Field Services segment for the year ended December 31, 2000 was $188 million, compared with $154 million in 1999. The increase in earnings in 2000 over 1999 is primarily due to two new pipeline projects which began operations in late 2000, Alliance Pipeline and Vector Pipeline Vector Pipeline is a natural gas pipeline which receives gas from multiple suppliers at a transportation hub in the Chicago area. The product is transported through Illinois, Indiana, and Michigan, and into Canada. , in addition to a higher contribution from the British Columbia Pipeline and Field Services divisions. British Columbia Pipeline and Field Services Divisions The contribution to net income applicable to common shares from the British Columbia Pipeline and Field Services divisions for the year ended December 31, 2000 was $109 million, compared with $93 million in 1999. Earnings for the three months ended December 31, 2000 and 1999 were $26 million and $15 million, respectively. These record results for the BC operations are partly the result of increased supply from northeast British Columbia and Southern Northwest Territories Northwest Territories, territory (2001 pop. 37,360), 532,643 sq mi (1,379,028 sq km), NW Canada. The Northwest Territories lie W of Nunavut, N of lat. 60°N, and E of Yukon. and very strong demand from markets in the BC Lower Mainland The Lower Mainland is the name that residents of British Columbia apply to the region surrounding the City of Vancouver. According to the 2001 census, over 2.2 million people live in the region; sixteen of the province's thirty most populous municipalities are located there and the U.S. Pacific Northwest For names and places containing the slightly longer word 'northwestern' (or variants), see . Northwest or north west is the ordinal direction halfway between north and west on a compass. It is the opposite of southeast. . The increase for both the fiscal and quarterly results is primarily due to higher firm contract and interruptible service revenues, which were partially offset by higher operating and maintenance expenses. Strong natural gas prices also contributed to higher earnings from gas price sensitive tolls. As of January January: see month. 31, 2001, shippers have recontracted all available annual contractible firm service on the Southern mainline mainline Drug slang verb To inject a drug from Compressor compressor, machine that decreases the volume of air or other gas by the application of pressure. Compressor types range from the simple hand pump and the piston-equipped compressor used to inflate tires to machines that use a rotating, bladed element to achieve Station 2 to Sumas and on the Fort Nelson mainline for a two-year term, effective November November: see month. 1, 2001. May 1, 2001 is the deadline for gathering and processing contract renewals for November 1, 2001. The Company is actively investigating options for expansion of pipeline capacity from Compressor Station 2 to Sumas as well as on the Fort Nelson mainline. Empire State Pipeline (Empire) The contribution to net income applicable to common shares from Empire for the year ended December 31, 2000 was $6 million, compared with $8 million in 1999. Lower earnings in 2000 are the result of lower interruptible revenues due to delays in the completion of the Pendleton Pendleton, city (1990 pop. 15,126), seat of Umatilla co., NE Oreg., on the Umatilla River, in the foothills of the Blue Mts.; founded 1869 on the old Oregon Trail, inc. 1889. interconnect (1) To attach one device to another. (2) A physical port (plug, socket) or wireless port (transmitter, receiver) used to attach one device to another. and downstream From the provider to the customer. Downloading files and Web pages from the Internet is the downstream side. The upstream is from the customer to the provider (requesting a Web page, sending e-mail, etc.). operating constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. at the Lysander Lysander (līsăn`dər), d. 395 B.C., Spartan naval commander and statesman. Toward the end of the Peloponnesian War he was made admiral and built up the Spartan fleet so that it defeated (407 B.C.) the Athenians off Notium. interconnect. In November 2000, the Company announced that it had entered into an agreement to purchase the additional 50% interest in Empire, increasing its interest to 100%, for a purchase price of US$75 million. The Empire acquisition is subject to final regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approval and is expected to be completed in the first quarter of 2001. Maritimes & Northeast Pipeline (M&NP) M&NP contributed $14 million to net income applicable to common shares for the year ended December 31, 2000, compared with $18 million in 1999. In September September: see month. 2000, the National Energy Board (NEB) issued its decision regarding M&NP's application for final tolls for the 10-month period ending September 30, 2000. In its decision, the NEB disallowed certain items for inclusion in M&NP's approved rate base. Accordingly, M&NP was directed to file final tolls for NEB approval which reflect these disallowances. As a result of the disallowance dis·al·low tr.v. dis·al·lowed, dis·al·low·ing, dis·al·lows 1. To refuse to allow: "[The government] , the Company recorded a one time negative net income impact of approximately $5 million after tax in the third quarter of 2000. M&NP currently has contracted firm service agreements totalling approximately 530,000 million British Thermal Units British thermal unit, abbr. Btu, unit for measuring heat quantity in the customary system of English units of measurement, equal to the amount of heat required to raise the temperature of one pound of water at its maximum density [which occurs at a temperature of 39. of natural gas per day (MMBtu/d). The Halifax Halifax, city, Canada Halifax, city (1991 pop. 114,455), provincial capital, S central N.S., Canada, on the Atlantic Ocean. It is the largest city in the Maritime Provinces and is one of Canada's principal ice-free Atlantic ports. and Saint John Saint John, city, Canada Saint John, city (1991 pop. 74,969), S N.B., Canada, at the mouth of the St. John River on the Bay of Fundy. A major year-round port, it has an excellent harbor, large dry docks, and terminal facilities and maintains extensive lateral lateral /lat·er·al/ (-il) 1. denoting a position farther from the median plane or midline of the body or a structure. 2. pertaining to a side. lat·er·al adj. 1. pipelines began operation on November 1, 2000 and November 29, 2000, respectively. M&NP has also commenced construction of facilities to connect its system to that of a local distributor in New Brunswick New Brunswick, province, Canada New Brunswick, province (2001 pop. 729,498), 28,345 sq mi (73,433 sq km), including 519 sq mi (1,345 sq km) of water surface, E Canada. . In the first quarter of 2001, M&NP received NEB approval for the construction of facilities to serve a Nova Scotia Nova Scotia (nō`və skō`shə) [Lat.,=new Scotland], province (2001 pop. 908,007), 21,425 sq mi (55,491 sq km), E Canada. Geography distributor. In August 2000, M&NP received approval from the NEB to operate the Point Tupper Tup·per , Sir Charles 1821-1915. Canadian politician who helped establish Nova Scotia as a province of Canada (1867) and served as prime minister (1896). Lateral. Approval was granted on the condition that the line operate at approximately 50% of the originally applied for maximum operating pressure. M&NP is finalizing discussions with the pipeline builder, Sable sable, species of marten, Martes zibellina, found in Siberia, N European Russia, and N Finland. This carnivorous mammal is highly valued for its thick, soft fur, which is dark brown or black, sometimes with white underparts and sometimes flecked with silver. Offshore Energy Inc., regarding transfer of ownership of the line. NEB approval for the construction of a pressure reducing station is expected in the first quarter of 2001. The Point Tupper Lateral is expected to begin service in the second quarter of 2001. Alliance Pipeline (Alliance) and Vector Pipeline (Vector) The recording of allowance for funds used during construction (AFUDC AFUDC Allowance for Funds Used During Construction AFUDC Accumulated Funds Used During Construction ) and operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before for the month of December 2000 resulted in equity earnings from the Company's investment in Alliance of $36 million in the year ended December 31, 2000, compared with $20 million in 1999. The recording of AFUDC by Vector and operating earnings for the month of December 2000 contributed approximately $9 million to net income applicable to common shares for the year ended December 31, 2000, compared with $1 million in 1999. Alliance and Vector began operations on December 1, 2000. Alliance has a firm transportation capacity of 1.3 billion cubic feet of natural gas per day and is fully contracted by shippers. Vector has an initial capacity of 700 million cubic feet of natural gas per day. Vector capacity will increase to 1 billion cubic feet per day following completion of the Highland Highland. 1 City (1990 pop. 34,439), San Bernardino co., SE Calif., in a citrus-grove area at the foot of the San Bernardino Mts. It has citrus-packing plants and some light industry. compressor station in late 2001. Alliance and Vector merchant capacity losses totalled $2 million for the month of December. The Company's capacity commitments on Alliance and Vector are currently expected to cost more than market value in the near term and therefore are expected to generate losses until market conditions improve. Physical and financial hedges are in place through October 2001. Aux Sable The Aux Sable natural gas liquids facility began operations in December of 2000. As a result of previously established commodity hedges, results for 2000 were approximately break-even. Under the current natural gas liquids market conditions, the Company does not expect to obtain an appropriate return on this investment in the immediate future. GAS DISTRIBUTION The contribution to net income applicable to common shares from the Gas Distribution segment for the year ended December 31, 2000 was $112 million, compared with $154 million in 1999. The earnings in this segment were higher in 1999 than they were in 2000 primarily due to the sale of Centra Gas Manitoba in July July: see month. 1999, which resulted in an after-tax gain to the Company of $59 million. Centra Gas Manitoba also contributed $6 million in earnings from operations to July 1999. In the years ended December 31, 2000 and 1999, earnings were reduced by $5 million ($0.04 per common share) and $17 million ($0.15 per common share), respectively, due to warmer than normal weather. Excluding the impact of weather and adjusting for the gain on sale of Centra Gas Manitoba, net earnings from the Gas Distribution business in 2000 were $117 million compared with $112 million in 1999. The 2000 results reflect growth in the number of natural gas distribution customers and higher storage and transportation revenues. Earnings in 1999 include an unusual expense related to business transformation initiatives. Union Gas The contribution to net income applicable to common shares from Union Gas for the year ended December 31, 2000 was $97 million, compared with $79 million in 1999. Results in 2000 continued to be adversely affected by warmer than normal weather for the third consecutive year. Weather reduced earnings by $5 million and $14 million in 2000 and 1999, respectively. The increase in 2000 earnings is primarily related to customer growth and higher storage and transportation revenues. Earnings in 1999 include an unusual expense related to business transformation initiatives. The Ontario Energy Board The Ontario Energy Board (OEB) is a Crown corporation responsible for regulating natural gas and electricity utilities in the province of Ontario, Canada. This includes setting rates and approving the Independent Electricity Market Operator (IMO)'s budget and fees. (OEB See Open eBook. ) held a hearing during the second and third quarters of 2000 regarding an application made by Union Gas for a performance-based regulation method of setting rates. Arguments were completed in August 2000, and a decision is expected in the first quarter of 2001. Centra Gas British Columbia (Centra Gas BC) The contribution to net income applicable to common shares from Centra Gas BC for the year ended December 31, 2000 was $14 million, compared with $12 million in 1999. The increase in earnings is primarily due to a higher rate base and a higher allowed rate of return on common equity. Centra Gas BC was able to increase its customer base by 4.5% in 2000 over 1999. Increased royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. revenues, combined with effective management of gas supply costs, has resulted in improved financial performance. Pacific Northern Gas (PNG (Portable Network Graphics) A bitmapped graphics file format endorsed by the World Wide Web Consortium. It is expected to eventually replace the GIF format, because there are lingering legal problems with GIFs. ) The contribution to net income applicable to common shares from PNG for the year ended December 31, 2000 was $3 million, equal to the Company's share of PNG's earnings in 1999. In May 2000, PNG was advised by its largest customer, Methanex Corporation, of its decision to shut down its Kitimat Kitimat (kĭt`ĭmăt'), town (1991 pop. 11,305), W British Columbia, Canada, at the head of Douglas Channel. It is the site of a huge aluminum smelter (opened 1954), pulp and paper mills, and a petrochemical plant. Kitimat has a deepwater anchorage. methanol/ammonia plant for an initial period of 12 months commencing July 1, 2000. In response, PNG has filed a rate application with the British Columbia Utilities Commission seeking approval of adjusted tolls. POWER GENERATION The contribution to net income applicable to common shares from the Power Generation segment for the year ended December 31, 2000 was $16 million, compared with $11 million in 1999. The increase in earnings in 2000 compared with 1999 is primarily due to revenue from the resale resale n. selling again, particularly at retail. In many states a "resale license" or "resale number" is required so that the state can monitor the collection of sales tax on retail sales. RESALE. of gas at the McMahon McMahon is the family name of the following persons:
In power systems, use of steam for both power generation and heating. High-temperature, high-pressure steam from a boiler and superheater first passes through a turbine to produce power. Plant and the Lake Superior Power Plant and effective utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of power transmission capacity in New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. acquired in anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, of the Bayside bay·side adj. Situated very close to or on the shore of a bay: bayside cottages. Power Project. These results also include the $3 million after-tax gain on the sale of the Company's interest in the Liberty Electric Power Project. The 1999 results included the $3 million after-tax gain on the sale of the Company's 50% interest in the Fort Nelson powerline. In September 2000, Westcoast Energy entered into a letter of intent to sell its interests in four older operating power generation assets and the 100% owned Island Cogeneration Project currently under construction. Significant changes in the power and natural gas markets since the signing of this letter of intent have complicated the transaction. While negotiations are continuing, the outcome of these negotiations is uncertain. In the interim, strong market conditions have resulted in continued strong performance of these assets. The Company continues to aggressively seek further power generation opportunities. Island Cogeneration Project (ICP (1) (Internet Cache Protocol) A protocol used by one proxy server to query another for a cached Web page without having to go to the Internet to retrieve it. See CARP and proxy server. ) Alstom Alstom (formerly GEC-Alsthom) (Euronext: ALO) is a large French multinational conglomerate whose businesses are power generation, railway signalling; and manufacturing trains (e.g. the TGV and Eurostar as well as Citadis trams) and the world's largest ships (e.g. Power, the engineering, procurement and construction  The introduction to this article is vague. To comply with Wikipedia's guidelines, it should be improved. (EPC (1) (Entertainment PC) See HTPC.(2) (Electronic Product Code) A standard code for RFID tags administered by EPCglobal Inc. (www.epcglobalinc.org). ) contractor contractor n. 1) a person or entity that enters into a contract. 2) commonly, a person or entity that agrees to construct a building or to provide or install specialized portions of the construction. and turbine turbine, rotary engine that uses a continuous stream of fluid (gas or liquid) to turn a shaft that can drive machinery. A water, or hydraulic, turbine is used to drive electric generators in hydroelectric power stations. supplier for ICP, has advised that required design changes to the turbine and difficulties with plant commissioning will delay the start-up of the project. As well, distillate dis·til·late n. A liquid condensed from vapor in distillation. distillate a product of distillation. firing capability, intended to be available at start-up, will be further delayed but will not prevent interim operations on natural gas. Contractual arrangements with Alstom substantially protect ICP from adverse financial consequences as a result of these delays and from expected reduction in plant output and efficiency during the interim operating period. The ICP project is expected to begin interim operations early in the second quarter of 2001 with completion by Alstom delayed until 2002. Bayside Power Project The overall project is over 90% complete. The project, which has a design capacity of 285 MW and in which the Company has a 75% interest, is now scheduled for a commercial in-service in-service In-service training adjective Referring to any form of on-the-job training noun In-service training of an employee date late in the second quarter of 2001 due to ongoing project execution challenges faced by Alstom, the EPC contractor and turbine supplier for this project. As with ICP, contractual arrangements with Alstom substantially protect the Bayside Power Project from adverse financial consequences as a result of these delays. Frederickson Power Project The Company and its partner are proceeding with detailed engineering and pre-construction activities for the 249-MW project, in which the Company has a 60% interest. The Company anticipates that the project will begin operations in mid- mid- pref. Middle: midbrain. 2002. INTERNATIONAL The contribution to net income applicable to common shares from the International segment for the year ended December 31, 2000 was $29 million compared with $15 million in 1999. Included in the earnings in the year ended December 31, 2000 is the $8 million after-tax gain on the sale of the Company's 74% interest in the EastCoast Power Project in Australia, offset by deferred income tax expense of $13 million arising from inflationary in·fla·tion·ar·y adj. Of, associated with, or tending to cause inflation: inflationary prices; inflationary policies. Adj. 1. gains and the relative strength of the Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum peso. In addition, the income contribution from the P.T. Puncakjaya Power (PJP PJP Pope John Paul PJP Partial Joint Penetration (welding) PJP pneumocystis jiroveci pneumonia (opportunistic infection) PJP Papa John's Pizza PJP Probate Judge of the Peace PJP Prison and Jail Project ) power facilities investment increased due to increased capacity revenues and lower interest costs. Cantarell Nitrogen nitrogen (nī`trəjən), gaseous chemical element; symbol N; at. no. 7; at. wt. 14.0067; m.p. −209.86°C;; b.p. −195.8°C;; density 1.25 grams per liter at STP; valence principally −3, +3, or +5. Facilities Performance testing Performance Testing covers a broad range of engineering or functional evaluations where a material, product, or system is not specified by detailed material or component specifications: Rather, emphasis is on the final measurable performance characteristics. of the Cantarell Nitrogen Facilities was completed in December. The plant is in operation and has delivered to Pemex Exploracion y Produccion (PEP) the design capacity of 1,200 million cubic feet of nitrogen production per day. Campeche Campeche, city, Mexico Campeche, city (1990 pop. 150,518), capital of Campeche state, SE Mexico, on the Yucatán peninsula. It is fortified and surrounded by 18th-century walls. Natural Gas Compression compression, external stress applied to an object or substance, tending to cause a decrease in volume (see pressure). Gases can be compressed easily, solids and liquids to a very small degree if at all. Services Project The project is being commissioned and is expected to be in full service early in the second quarter of 2001. The project consortium successfully obtained from PEP an extension to the contract in-service date for the project to September 5, 2000, and is currently negotiating with PEP for further extensions. Shanghai Shanghai (shăng`hī`, shäng`hī`), city (1994 est. pop. 12,980,000), in, but independent of, Jiangsu prov., E China, on the Huangpu (Whangpoo) River where it flows into the Chang (Yangtze) estuary. Power Plant The Shanghai Power Plant commenced commercial operations on June June: see month. 1, 2000, contributing net earnings of $2 million in 2000. SERVICES The contribution to net income applicable to common shares from the Services segment for the year ended December 31, 2000 was $45 million, compared with a net loss of $32 million in 1999. The increase in earnings in the year ended December 31, 2000 compared with the same period in 1999 is primarily due to a strong performance by the energy marketing business and Westcoast Capital, and a significant improvement at Union Energy. Fiscal 2000 results also include the after-tax gain of $4 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the sale of 51% of the Company's interest in NGX. Energy Marketing The energy marketing business contributed $35 million for the year ended December 31, 2000, compared with $4 million in 1999. The increase in earnings for the energy marketing business is in part due to the sale in the second quarter of 2000 of the capacity on the Kern River Pipeline Kern River Pipeline is a natural gas pipeline 1,679 miles (2,702 km) long that carries gas produced in the Rocky Mountains to California by following the Kern River through Nevada. It also provides gas to Las Vegas. , and a portion of the associated upstream From the consumer to the provider. See downstream. (networking) upstream - Fewer network hops away from a backbone or hub. For example, a small ISP that connects to the Internet through a larger ISP that has their own connection to the backbone is downstream from the larger capacity on Northwest Pipeline Northwest Pipeline is a natural gas pipeline which takes gas from western Canada and the Rocky Mountains and brings it into California, either through Gas Transmission Northwest or Kern River. A small amount of gas goes through the San Juan Basin to El Paso Natural Gas. , offset partially by the final disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of the upstream capacity in the fourth quarter. All of the capacity on the Kern River Pipeline has now been permanently assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. to other parties, and as of the end of 2000, the Company holds only a small amount of remaining upstream capacity on Northwest Pipeline. The contribution to net income applicable to common shares from Engage Energy for the year ended December 31, 2000 was $26 million, compared with $5 million in 1999. Engage Energy achieved improved results year over year from structured natural gas and power transactions, improved management of risk capital and a continued emphasis on cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. . The significant improvement in the 2000 results is the result of the addition of many new structured projects and success in gas and electric trading operations. The success in the natural gas business was principally due to the increased opportunities that arose in the final quarter of 2000 with the price volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the in the North American natural gas markets. Strong earnings in the power trading business were generated by capturing profitable structured and trading opportunities created by restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the electric industry. The three months ended December 31, 2000 also represent the first quarter of 100% contribution from Engage Energy Canada following the acquisition of the additional 50% interest from The Coastal Corporation in October 2000. Union Energy Union Energy contributed $200,000 net earnings for the year ended December 31, 2000, compared with a net loss of $38 million in 1999. Reflecting continued improvement in operations, Union Energy earned $3 million in the fourth quarter of 2000. In 1999 unusual after-tax charges of $18 million such as write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. software costs, increases in bad debt reserve and inventory and computer equipment write-downs were responsible for a large portion of the weak performance. A decrease in operating costs operating costs npl → gastos mpl operacionales in 2000 and significant margin improvements in the equipment rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. and the heating, cooling and fireplace fireplace Opening made in the base of a chimney to hold an open fire. The opening is framed, usually ornamentally, by a mantel (or mantelpiece). A medieval development that replaced the open central hearth for heating and cooking, the fireplace was sometimes large enough to businesses contributed to the improved performance. Westcoast Capital Corporation The contribution to net income applicable to common shares from Westcoast Capital for the year ended December 31, 2000 was $21 million compared with $8 million in 1999. The earnings reflect growing operations and the early buyout Buyout The purchase of a company or a controlling interest of a corporation's shares. Notes: A leveraged buyout is accomplished with borrowed money or by issuing more stock. of a gas transportation agreement in the first quarter of 2000, however, almost all of the increase is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the favourable impact from corporate income tax rate reductions. In the fourth quarter of 2000, the Company decided to cease doing further Structured Finance business in order to focus on the Retail Finance business of Westcoast Capital. Enlogix In 2000, Enlogix grew to become North America's largest provider of billing and customer information services See Information Systems. to the energy sector. It now provides 13 clients with billing services for their 3 million customers. Enlogix systems now support clients in the regulated reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. and unregulated Adj. 1. unregulated - not regulated; not subject to rule or discipline; "unregulated off-shore fishing" regulated - controlled or governed according to rule or principle or law; "well regulated industries"; "houses with regulated temperature" 2. gas, electric, water, and energy services sectors across North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Enlogix expects to reach sustainable monthly break-even results on operations by the end of 2002 and has set a three-year goal of growing its customers served to 5 million. A net loss applicable to common shares of $16 million was incurred for the year ending December 31, 2000. Enlogix ceased capitalizing certain expenses relating to software development and commenced recording depreciation expense at the start of operations effective October 1, 1999. Consequently, the fiscal 2000 results reflect the impact of such changes. As well, Enlogix took over technical service operations from a contractor, which resulted in a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. after-tax increase of $6 million in expenses but is expected to result in significant ongoing cost savings. NGX The contribution to net income applicable to common shares from NGX for the year ended December 31, 2000 was $5 million, compared with $2 million in 1999. In March 2000, the Company sold 51% of NGX to OM Gruppen of Sweden Sweden, Swed. Sverige, officially Kingdom of Sweden, constitutional monarchy (2005 est. pop. 9,002,000), 173,648 sq mi (449,750 sq km), N Europe, occupying the eastern part of the Scandinavian peninsula. , an electronic exchange owner and operator, resulting in an after-tax gain of $4 million in 2000. In January 2001, the Company exercised its option to sell its remaining 49% interest in NGX to OM Gruppen, effective January 1, 2001. The transaction will result in an after-tax gain of $6 million in 2001. OTHER The net costs applicable to other activities, including corporate expenses, business development expenditures and corporate financing expenses were $50 million for the year ended December 31, 2000, compared with $80 million in 1999. Included in this balance are corporate financing expenses, which include preferred share dividends of $48 million and $45 million in the years ended December 31, 2000 and 1999, respectively. Unallocated interest amounted to $31 million in the year ended December 31, 2000, relating to approximately $750 million in debt, compared with $20 million in the year ended December 31,1999, relating to $800 million in debt. As the result of a change in the accounting for income taxes, effective January 1, 2000, the deferred tax liabilities or assets are adjusted to reflect current income tax rates. The decrease in net costs in the year ended December 31, 2000 compared with the same period in 1999 is primarily due to the $34 million favourable impact of the corporate income tax rate reductions. Business Development Millennium millennium [Lat.,=1,000 years], the period of 1,000 years in which, according to some schools of Christian eschatology, Christ will reign again gloriously on earth. Belief in the millennium, based on Rev. 20, has recurred in Christianity since the earliest times. Pipeline Projects The Millennium Pipeline Project partners continue to pursue the Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. and U.S. regulatory approvals and long term market commitments required to advance the project. Changes in Capital Structure In November 2000, the Company sold 4,000,000 common shares, at a price of $32.25 per common share, for gross proceeds of $129 million. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the common stock issuance were used to retire retire v. 1) to stop working at one's occupation. 2) to pay off a promissory note, and thus "retire" the loan. 3) for a jury to go into the jury room to decide on a verdict after all evidence, argument and jury instructions have been completed. commercial paper previously issued by the Company, pre-fund the planned acquisition of the additional 50% interest in Empire and other corporate purposes. In December 2000, Union Gas redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. all of the outstanding 10.625% Debentures, Series 1986 for approximately $75 million. Dividend On February February: see month. 21, 2001, the Board of Directors declared a quarterly dividend of $0.34 per common share, payable on March 31, 2001, to shareholders of record at the close of business on March 9, 2001. Forward Looking Information The information in this news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. with respect to Westcoast Energy Inc., its subsidiaries or affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. . By their nature, these forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. Such risks and uncertainties include, among others: general economic and business conditions, the ability of the Company to successfully implement the initiatives and projects referred to in this news release, natural gas prices, availability of capital, changes in the regulatory environment in which the Company's regulated entities operate (including changes in allowed rates of return), and changes in, or failure to comply with, the laws and government regulations applicable to the Company.
CONSOLIDATED FINANCIAL RESULTS HIGHLIGHTS
For the Year Ended December 31, 2000 ($million)
Transmission Gas Power Inter- Services Other Total
& Field Distri- Gener- national
Services bution ation
---------------------------------------------------------
Total revenues 825 1,870 128 127 6,613 5 9,568
Intercompany
revenues - (14) - - (597) (2) (613)
--------------------------------------------------------------------
Operating revenues 825 1,856 128 127 6,016 3 8,955
--------------------------------------------------------------------
Net income (loss) 190 112 16 29 45 (4) 388
--------------------------------------------------------------------
Net income (loss)
applicable to
common shares 188 112 16 29 45 (50) 340
--------------------------------------------------------------------
Operating cash
flow (before
working capital
changes) 299 285 32 77 22 (74) 641
--------------------------------------------------------------------
Total assets 4,761 5,237 628 921 3,253 327 15,127
--------------------------------------------------------------------
Per common share:
($/share)
Earnings - basic $1.62 $0.97 $0.13 $0.25 $0.38 $(0.43) $2.92
Operating
cash flow $2.56 $2.44 $0.28 $0.66 $0.19 $(0.63) $5.50
Dividends $1.28
--------------------------------------------------------------------
Common shares: (000)
Outstanding 121,443
Weighted average 116,581
--------------------------------------------------------------------
Preferred shares: (000)
8.08% Cumulative First Preferred Shares, Series 2 4,597
4.90% Cumulative Redeemable First Preferred Shares, Series 5 8,000
4.72% Cumulative Redeemable First Preferred Shares, Series 6 5,000
5.50% Cumulative First Preferred Shares, Series 7 6,000
5.60% Cumulative First Preferred Shares, Series 8 6,000
5.00% Cumulative Redeemable First Preferred Shares, Series 9 5,000
Options outstanding 4,874
--------------------------------------------------------------------
For the Year Ended December 31, 1999 ($million)
Transmission Gas Power Inter- Services Other Total
& Field Distri- Gener- national
Services bution ation
---------------------------------------------------------
Total revenues 722 1,876 119 68 3,890 2 6,677
Intercompany
revenues (5) (7) - - (400) - (412)
--------------------------------------------------------------------
Operating revenues 717 1,869 119 68 4,486 2 6,265
--------------------------------------------------------------------
Net income (loss) 155 154 11 15 (32) (36) 267
--------------------------------------------------------------------
Net income (loss)
applicable to
common shares 154 154 11 15 (32) (80) 222
--------------------------------------------------------------------
Operating cash
flow (before
working capital
changes) 238 246 25 38 14 (62) 499
--------------------------------------------------------------------
Total assets 4,184 4,608 421 769 1,542 253 11,777
--------------------------------------------------------------------
Per common share:
($/share)
Earnings - basic $1.35 $1.35 $0.10 $0.13 $(0.28)$(0.70) $1.95
Operating cash $2.09 $2.16 $0.22 $0.33 $0.12 $(0.54) $4.38
flow
Dividends $1.28
--------------------------------------------------------------------
Common shares: (000)
Outstanding 114,848
Weighted average 113,978
--------------------------------------------------------------------
Preferred shares: (000)
8.08% Cumulative First Preferred Shares, Series 2 4,610
4.90% Cumulative Redeemable First Preferred Shares, Series 5 8,000
4.72% Cumulative Redeemable First Preferred Shares, Series 6 5,000
5.50% Cumulative First Preferred Shares, Series 7 6,000
5.60% Cumulative First Preferred Shares, Series 8 6,000
5.00% Cumulative Redeemable First Preferred Shares, Series 9 5,000
Options outstanding 4,691
--------------------------------------------------------------------
Transmission & Field Services - natural gas gathering, processing
and transmission;
Gas Distribution - natural gas distribution and storage
and transmission;
Power Generation - electrical and thermal energy
generated from natural gas;
International - international operations;
Services - energy marketing, retail energy
services and information technology
and financial services;
Other - other activities, including corporate
expenses, business development
expenditures, corporate financing
expenses and utilization of previous
years' unrecorded tax losses.
SEGMENTED INFORMATION
Three Months Ended Year Ended
December 31, 2000 December 31, 2000
($million) ($million)
2000 1999 2000 1999
---------------------------------------
Transmission & Field Services
BC Pipeline and Field
Services Divisions 26 15 109 93
Non-NEB Regulated Field
Services 1 (1) 1 2
Foothills Pipe Lines 3 2 10 9
Empire State Pipeline 1 2 6 8
Maritimes & Northeast Pipeline 4 7 14 18
Alliance Pipeline 10 4 36 20
Vector Pipeline 4 1 9 1
Merchant capacity (2) - (2) -
Other 1 (1) 5 3
---------------------------------------
48 29 188 154
---------------------------------------
---------------------------------------
Gas Distribution
Union Gas 50 35 97 79
Centra Gas Manitoba - - - 6
Sale of Centra Gas Manitoba - - - 59
Centra Gas British Columbia 4 4 14 12
Pacific Northern Gas 1 1 3 3
Other (1) (4) (2) (5)
---------------------------------------
54 36 112 154
---------------------------------------
---------------------------------------
Power Generation
Canadian operations 6 3 13 8
Sale of Liberty Electric
Power Project 1 - 3 -
Sale of interest in Fort
Nelson powerline - - - 3
---------------------------------------
7 3 16 11
---------------------------------------
---------------------------------------
International
PJP 3 4 14 12
Cantarell 7 3 8 3
Sale of interest in
EastCoast Power Project - - 8 -
Other (2) - (1) -
---------------------------------------
8 7 29 15
---------------------------------------
---------------------------------------
Services
Energy Marketing -
Engage Energy 15 3 26 5
Energy Marketing - Other (3) 8 9 (1)
---------------------------------------
12 11 35 4
Union Energy 3 (12) - (38)
Westcoast Capital 9 3 21 8
Enlogix (5) (6) (16) (8)
NGX 1 - 1 2
Sale of 51% of Company's
interest in NGX - - 4 -
---------------------------------------
20 (4) 45 (32)
---------------------------------------
---------------------------------------
Other
Corporate Financing -
Preferred Dividends (13) (12) (48) (45)
Corporate Financing -
Unallocated Interest (8) (9) (31) (20)
---------------------------------------
(21) (21) (79) (65)
Other 12 (6) 29 (15)
---------------------------------------
(9) (27) (50) (80)
---------------------------------------
---------------------------------------
TOTAL 128 44 340 222
---------------------------------------
---------------------------------------
QUARTERLY RESULTS
Q1 Q2 Q3 Q4 Annual
2000 (dollar/share)
Earnings per common share $1.03 $0.60 $0.20 $1.09 $2.92
Weather 0.09 0.01 (0.01) (0.05) 0.04
--------------------------------------
Weather normalized earnings
per common share* $1.12 $0.61 $0.19 $1.04 $2.96
--------------------------------------
Q1 Q2 Q3 Q4 Annual
1999 (dollar/share)
Earnings per common share $1.08 $0.05 $0.44 $0.38 $1.95
Weather 0.05 0.05 - 0.05 0.15
--------------------------------------
Weather normalized earnings
per common share* $1.13 $0.10 $0.44 $0.43 $2.10
--------------------------------------
* The earnings applicable to the gas distribution companies have been
adjusted to remove positive and negative weather variances.
STATISTICS
For the Year Ended December 31
2000 1999
Throughput (Bcf)
British Columbia Pipeline Division 682 670
Foothills Pipe Lines 1,155 1,131
Empire State Pipeline 117 105
Maritimes & Northeast Pipeline 290 -
Union Gas 1,263 1,222
Other Distribution ** 72 122
-------------------------------
3,579 3,250
-------------------------------
Average Rate Base ($million)
British Columbia Pipeline and
Field Services Divisions 2,285 2,294
Foothills Pipe Lines (proportionate
share - Phase I - 27%) 225 224
Empire State Pipeline (proportionate
share - 50%) 114 120
Union Gas 2,867 2,733
Other Distribution 625 591
-------------------------------
6,116 5,962
-------------------------------
Degree Days (% from normal ***)
Union Gas (1.4) (8.6)
Centra Gas Manitoba ** - (13.6)
Centra Gas BC 5.2 3.9
** The 1999 figures include Centra Gas Manitoba until it was sold in
July 1999.
*** A degree day is a measure of the coldness of the weather
experienced based on the extent to which the daily mean
temperature falls below a reference temperature, usually 18
degrees Celsius. () indicates warmer weather than normal weather.
CONSOLIDATED STATEMENTS OF OPERATIONS
WESTCOAST ENERGY INC.
FOR THE PERIODS ENDED DECEMBER 31 ($million, except for share data)
Three Months Ended Year Ended
2000 1999 2000 1999
--------------------------------------------
Operating revenues 3,310 1,675 8,955 6,265
--------------------------------------------
Operating expenses
Cost of sales 2,680 1,139 6,755 4,258
Operation and maintenance 226 241 801 826
Depreciation 104 96 426 401
Taxes - other than
income taxes 45 37 158 157
--------------------------------------------
3,055 1,513 8,140 5,642
--------------------------------------------
Operating income 255 162 815 623
Other income
Equity earnings 13 6 44 22
Allowance for funds used
during construction - 10 7 34
Investment and other income 30 14 117 150
--------------------------------------------
298 192 983 829
--------------------------------------------
Other expenses
Interest 127 127 516 499
Other 1 (4) 11 7
---------------------------------------------
128 123 527 506
---------------------------------------------
Income before
undernoted items 170 69 456 323
---------------------------------------------
Income taxes
Current 55 35 104 79
Deferred (28) (24) (46) (33)
---------------------------------------------
27 11 58 46
---------------------------------------------
143 58 398 277
Non-controlling interest 3 3 10 10
---------------------------------------------
Net income 140 55 388 267
Provision for dividends
on preferred shares 12 11 48 45
---------------------------------------------
Net income applicable
to common shares 128 44 340 222
---------------------------------------------
Common shares - weighted
average (million) 117 114
Per common share -
basic $1.09 $0.38 $2.92 $1.95
Per common share -
fully diluted $0.98 $0.27 $2.70 $1.78
Dividends per common share $0.32 $0.32 $1.28 $1.28
CONSOLIDATED STATEMENTS OF CASH FLOW
WESTCOAST ENERGY INC.
FOR THE PERIODS ENDED DECEMBER 31 ($million, except for share data)
Three months ended Year ended
2000 1999 2000 1999
---------------------------------------------
Operating activities
Net income 140 55 388 267
Add (deduct) items to
reconcile to net cash:
Non-controlling interest 3 3 10 10
Deferred income taxes (28) (24) (46) (33)
Depreciation and
amortization 105 90 431 396
Net assets from price
risk management
activities (40) (13) (67) (13)
Equity earnings (13) (6) (44) (22)
Other 11 17 (31) (106)
---------------------------------------------
Operating cash flow 178 122 641 499
Non-cash working
capital changes 11 (127) (68) (43)
---------------------------------------------
189 (5) 573 456
---------------------------------------------
Investing activities
Additions to fixed
assets
Transmission & Field
Services (47) (113) (195) (551)
Gas Distribution (77) (78) (236) (291)
Power Generation (34) (59) (191) (144)
International (12) (47) (75) (215)
Services (13) (51) (49) (101)
Other - - (1) (3)
---------------------------------------------
(183) (348) (747) (1,305)
Acquisitions (66) (6) (66) (39)
Dispositions 90 - 501 255
Investments and other (203) 27 (471) (48)
---------------------------------------------
Net cash used by
investing activities (362) (327) (783) (1,137)
---------------------------------------------
Financing activities
Increase in bank
indebtedness 9 263 55 102
Long term debt additions 251 128 663 809
Long term debt repayments (113) (81) (404) (240)
Preferred shares issued - 122 - 272
Preferred shares redeemed - (126) - (126)
Common shares issued 144 16 184 59
Dividends paid (50) (48) (197) (191)
Dividends paid to
non-controlling interest (2) (4) (8) (10)
---------------------------------------------
Net cash provided by
financing activities 239 270 293 675
---------------------------------------------
Increase (decrease) in
cash and short term
investments during
the period 66 (62) 83 (6)
Cash and short term
investments,
beginning of period 118 163 101 107
---------------------------------------------
Cash and short term
investments,
end of period 184 101 184 101
---------------------------------------------
Operating cash flow
per common share $1.51 $1.06 $5.50 $4.38
CONSOLIDATED BALANCE SHEETS
WESTCOAST ENERGY INC.
($million)
December 31 December 31
2000 1999
---------------------------
ASSETS
Current assets
Cash and short term investments 184 101
Accounts receivable 1,433 1,001
Deferred income taxes 15 -
Assets from price risk management
activities 1,340 111
Inventory 554 435
Prepayments 20 29
---------------------------
3,546 1,677
---------------------------
Investments 970 454
Deferred income taxes 306 -
Assets from price risk management
activities 561 186
Fixed assets
Plant, property and equipment 12,589 12,096
Less accumulated depreciation 3,222 2,988
---------------------------
9,367 9,108
---------------------------
Deferred charges and other assets 377 352
---------------------------
15,127 11,777
---------------------------
LIABILITIES
Current liabilities
Bank indebtedness 834 779
Accounts payable and accrued liabilities 1,413 962
Income and other taxes payable 66 36
Deferred income taxes 35 -
Liabilities from price
risk management activities 1,223 100
Interest on debt 89 94
Long term debt due within one year 209 322
---------------------------
3,869 2,293
---------------------------
Liabilities from price risk
management activities 612 175
---------------------------
Long term debt 5,971 5,550
---------------------------
Deferred income taxes 880 333
---------------------------
Non-controlling interest
Preferred 130 130
Common 36 36
---------------------------
166 166
---------------------------
PREFERRED SHAREHOLDERS' EQUITY
Preferred stock 865 865
---------------------------
COMMON SHAREHOLDERS' EQUITY
Common stock: 2000 - 121,443,366 shares
(1999 - 114,847,515 shares) 1,944 1,755
Cumulative translation adjustment 17 (1)
Retained earnings 803 641
---------------------------
2,764 2,395
---------------------------
15,127 11,777
---------------------------
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
WESTCOAST ENERGY INC.
FOR THE YEARS ENDED DECEMBER 31 ($million)
2000 1999
---------------------------
Retained earnings, beginning of year 641 643
Net income 388 267
Share issue costs (3) (4)
Change in accounting for income taxes (25) -
Adoption of mark-to-market accounting - (36)
Transfer of retail services business - (38)
---------------------------
1,001 832
---------------------------
Dividends
Common shares 150 146
Preferred shares 48 45
---------------------------
198 191
---------------------------
Retained earnings, end of year 803 641
---------------------------
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