
Florida Electric Utility’sCAD net income increased by $30 million to $125 million in Q2 2019, compared to $95 million in Q2 2018.Year-to-date, Florida Electric Utility’s CAD net income increased by $31 million to $186 million, compared to $155 million in 2018. Increases in both periods were due to higher base revenues related to thein-service of solar generation projects and customer growth. The Q2 increase was also due to more favorable weather. These increases were partially offset by higher depreciation and interest expense arising from increased investment in rate base.
Canadian Electric Utilities’ net income decreased by $6 million to $42 million, compared to $48 million in Q2 2018 primarily due to lower contributions from Nova Scotia Power Inc. (“NSPI”). The decrease at NSPI was primarily due to timing of regulatory deferrals and increased OM&G expenses, partially offset by increased sales volume due to weather and customer growth and decreased income taxes.Year-to-date, Canadian Electric Utilities’ net income was $138 million, consistent with 2018. The timing of regulatory deferrals causes quarterly earnings volatility, while full year results are more predictable
Other Electric Utilities’CAD net income, adjusted to excludemark-to-market, increased by $5 million to $23 million in Q2 2019, compared to $18 million in Q2 2018.Year-to-date, Other Electric Utilities’ CAD net income, adjusted to excludemark-to-market, increased by $6 million to $39 million, compared to $33 million in 2018. The increase in both periods is due to higher contributions from Emera Maine in Q2 2019. Emera Maine’s contribution increased due to decreased OM&G, primarily due to higher capitalized construction overheads and the absence of regulatory expenses and adjustments related to the 2018 distribution rate case.
Gas Utilities and Infrastructure’s CAD net income increased by $15 million to $40 million in Q2 2019, compared to $25 million in Q2 2018.Year-to-date, Gas Utilities and Infrastructure’s CAD net income increased by $29 million to $107 million, compared to $78 million in 2018. NMGC’s recognition of tax reform benefits from January 1, 2018 to June 30, 2019 resulted in a $12 million (of which $8 million related to 2018) increase in net income in Q2 2019 andyear-to-date. Theyear-to-date period also benefited from favourable weather and the optimization of pipeline capacity in New Mexico. The Q2 2019 andyear-to-date increases were also due to customer growth at Peoples Gas System, lower depreciation and amortization and increased investment related to the cast iron and bare steel replacement rider, partially offset by less favourable weather in Florida.
Other’snet loss, adjusted to excludemark-to-market, increased by $25 million to $100 million in Q2 2019, compared to $75 million in Q2 2018.Year-to-date, Other’s net loss, adjusted to excludemark-to-market, increased by $25 million to $116 million, compared to $91 million in 2018. The quarterly and year to date increase is primarily due to lower marketing and trading margin, reflecting less favourable market conditions. As a result, Marketing & Trading net earnings year to date were in line with 2017 at $10 million, compared to $33 million in 2018. Higher preferred stock dividends, and a $7 millionafter-tax expense related to transaction costs and immaterial losses on asset divestitures, partially offset by the gain on sale of property in Florida also contributed to the year to date increase.
Non-GAAP Measures
Emera uses financial measures that do not have standardized meaning under USGAAP and may not be comparable to similar measures presented by other entities. Emera calculates thenon-GAAP measures by adjusting certain GAAP andnon-GAAP measures for specific items the Company believes are significant, but not reflective of underlying operations in the period. Refer to theNon-GAAP Financial Measures section of our Management’s Discussion and Analysis (“MD&A”) for further discussion of these items.
Forward Looking Information
This news release contains forward-looking information within the meaning of applicable securities laws. By its nature, forward-looking information requires Emera to make assumptions and is subject to inherent
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