Topic: How To Invest

The Successful Investor Hotline – Friday, November 17, 2017

Article Excerpt

EMERA INC., $47.63, Toronto symbol EMA, owns 100% of Nova Scotia Power—the province’s main electricity supplier. It also owns power utilities in the U.S. and the Caribbean. In July 2016, the company completed its purchase of Teco Energy for $13.9 billion. This firm supplies electricity and natural gas to customers in Tampa Bay, Florida. It also distributes gas in New Mexico. Excluding costs related to the Teco purchase, Emera earned $118 million, or $0.55 a share, in the three months ended September 30, 2017. That missed the consensus estimate for $0.72. The lower earnings are mainly due to losses on natural gas hedging contracts at its energy-trading subsidiary. A year earlier, it earned $133 million, or $0.73. Revenue in the quarter rose 2.9%, to $1.43 billion from $1.39 billion. The new operations in Florida and New Mexico contributed $926 million to that total. Regulated operations currently supply 90% of Emera’s earnings. Thanks to steady cash flows from these businesses, the company plans to raise…