Nancy SouthernPresident &Chief Executive Officer
Canadian Utilities’ (CU) financial and operating performance in 2010 reflects the successful efforts of the 6,000 extraordinary and talented people of our company.
2010 was characterized by a very fragile global economy against a backdrop of continued regulatory and policy shifts, the re-emergence of a North American gas bubble and an abundance of power supply in Alberta, which had a significant impact on ATCO Midstream and ATCO Power, respectively.
However, the diversity of the businesses within our enterprise – ‘the Piston Effect’ as we’ve referred to it in the past - allowed us to overcome the challenges we faced.
CU’s strong earnings of $435 million were supported by a robust balance sheet holding $540 million of cash and an industry leading ‘A’ credit rating.
These results were achieved through the strength and determination of our people, a deeply embedded focus on operational excellence with its inherent cost controls, and carefulconsideration of the environmental and social impact of our actions; now and for the future.
Brian BaleSenior Vice President &Chief Financial Officer
At December 31, 2010, Canadian Utilities had $540 million of cash together with close to $1 billion of bank lines, providing a significant source of liquidity.
Canadian Utilities has grown its total assets by $2.4 billion over the past five years from $7.0 billion to $9.4 billion, an increase of 35 per cent. The company has not only maintained a strong balance sheet throughout this period of significant growth, but strengthened it with a Debt to Capitalization ratio of 45 per cent at the end of 2010 as compared to 51 per cent in 2006.
Over the next three years, Canadian Utilities has in excess of $5 billion of growth projects. Two of the largest projects are the estimated $1.6 billion 500 kV Eastern Alberta Direct Current (DC) Transmission Line that will run along a corridor on the east side of Alberta between Edmonton and Calgary, and the estimated $800 million Hanna Region Transmission Development in the southeast region of the province.
Expansion programs in our regulated companies will increase the size of the company by over 50 per cent, and will deliver significant long-term returns for share owners.