Emera Reports Earnings for Q3 2015

Emera (TSX: EMA) today reported results for the third quarter of
2015.

Reported Earnings (including after-tax
mark-to-market impacts)

• Reported net income in Q3 2015 was $35.0 million (versus $28.2 million
  in Q3 2014).
• Reported earnings per share in Q3 2015 were $0.24 (versus $0.20 in Q3
  2014).
• Excluding mark-to-market impacts, the impact of acquisition costs in
  2015 and a dilution gain in 2014, adjusted earnings per share⁽¹⁾
  were $0.30 in Q3 2015 versus $0.28 in Q3 2014.

Adjusted Earnings (excluding after-tax
mark-to-market impacts)

• Adjusted net income⁽¹⁾ in Q3 2015 was $23.3 million (versus
  $49.9 million in Q3 2014).
  • Q3 2015 adjusted net income⁽¹⁾ included $20.1 million
    after-tax in acquisition costs related to the pending acquisition
    of TECO Energy Inc. (TECO Energy).
  • Q3 2014 adjusted net income⁽¹⁾ included a $9.1 million
    after-tax gain on dilution of Emera’s equity investment in
    Algonquin Power & Utilities Corp. (APUC).
  • Excluding these items, Q3 2015 adjusted net income⁽¹⁾
    was $43.4 million versus $40.8 million in Q3 2014.
• Excluding mark-to-market impacts, adjusted earnings per share⁽¹⁾
  in Q3 2015 were $0.16 (versus $0.35 in Q3 2014).

Q3 Highlights

• On September 4, 2015 Emera announced a definitive agreement to acquire
  TECO Energy for an aggregate purchase price of approximately US$10.4
  billion, including the consolidation of approximately US$3.9 billion
  of debt.
  • Expected to be significantly accretive to earnings per common
    share by approximately 5% in the first full year of operations
    (2017)^a and growing to more than 10% by the third full
    year (2019)^a.
  • The acquisition provides additional support to Emera’s 8% dividend
    growth target through 2019 and positions Emera to extend the
    dividend growth target beyond 2019.

“While the quarter was, as expected, impacted by costs relating to the
acquisition of TECO Energy, the underlying performance of the business
remains strong and on track with our expectations,” said Chris
Huskilson, President and CEO of Emera Inc. “The acquisition of TECO
Energy advances a number of Emera’s short and long-term objectives. The
earnings and cash accretion resulting from this acquisition, combined
with the visible earnings growth for the merged businesses, provides
strong growth well into the next decade.”

^a Within a stable currency exchange environment; for
additional assumptions, see “Forward Looking Information” noted below. ⁽¹⁾See
“Non-GAAP Measures” noted below.

Consolidated Financial Highlights (in millions
of $CAD, except per share amounts)

		Three months ended September 30						Nine months ended September 30
			2015			2014			2015			2014
Operating revenues		$	654.0		$	562.4		$	2,091.3		$	2,179.3
Net income attributable to common shareholders		$	35.0		$	28.2		$	205.1		$	255.5
Earnings per common share - basic		$	0.24		$	0.20		$	1.41		$	1.79
After-tax mark-to-market gain (loss)		$	11.7			($21.7)			($37.8)		$	14.8
Adjusted EBITDA(1)*		$	182.3		$	202.3		$	772.4		$	718.5
Adjusted net income attributable to common shareholders(1)*		$	23.3		$	49.9		$	242.9		$	240.7
Adjusted earnings per common share – basic(1)*		$	0.16		$	0.35		$	1.67		$	1.68
Other items affecting earnings per common share – basic:
Costs related to pending acquisition of TECO Energy			($0.14)			-			($0.14)			-
Gain on dilution of APUC Equity Investment			-		$	0.06			-		$	0.06
Gain on sale of Northeast Wind Partnership II, LLC investment			-			-		$	0.08			-
Barbados Light & Power Company Limited Restructuring Costs			-			-			($0.04)			-
Effect of Foreign Currency Translation (adjusted earnings per share(1))i		$	0.03		$	0.01		$	0.13		$	0.07
Dividends per common share declared		$	0.8750		$	0.7500		$	1.6625		$	1.4750
Total Assets (as at September 30)		$	10,973.0		$9,407.0
Weighted average shares of common stock outstanding - basic (millions of shares for the three months ended September 30)			146.0		143.6
(1)See “Non-GAAP Measures” noted below.
*Adjusted EBITDA(1), Adjusted net income(1) and Adjusted earnings per common share(1) excludes the effect of mark-to-market adjustments.
iEffect of foreign currency translation compared quarter-over-quarter and year to date-over-year to date.

Items Affecting Earnings in the Quarter

Acquisition-Related Costs
In Q3 2015, Emera incurred
acquisition and financing costs of $20.1 million after-tax ($0.14 per
common share) related to the pending acquisition of TECO Energy.

Gain on Dilution of APUC Equity Investment
In Q3 2014, APUC
closed a 16.86 million common share offering. In addition, an
over-allotment option of 2.52 million common shares was exercised. As a
result, Emera recorded a gain of $9.1 million in after-tax earnings
($0.06 per common share).

Consolidated Highlights

Operating revenues increased 16.3% to $654.0 million in Q3 2015
compared to the same period last year. The increase was primarily due to
mark-to-market changes, the strengthening of the USD and increased
revenue at Emera Energy’s New England Gas Generating Facilities and
collection of prior year fuel costs at Nova Scotia Power Inc. (NSPI).
The increase was partially offset by decreased revenues at Barbados
Light & Power Company Limited (BLPC) due to lower fuel revenues as a
result of lower commodity fuel prices.

Adjusted net income⁽¹⁾ decreased to $23.3 million in
Q3 2015 (Q3 2014: $49.9 million), primarily due to acquisition related
costs on the pending TECO Energy acquisition, a dilution gain in 2014
from Emera’s equity investment in APUC, and timing at NSPI. The decrease
was partially offset by the strengthening USD and the increased
electricity sales at the New England Gas Generating Facilities. For the
nine months ended September 30^th, 2015, adjusted net income
increased $2.2 million to $242.9 million, compared to $240.7 million for
the same period last year, with the year-over-year increase primarily
due to the performance of the New England Gas Generating Facilities, a
stronger USD, a gain on the sale of Emera’s interest in Northeast Wind
Partnership and increased equity earnings from Bear Swamp. These
increases were partially offset by acquisition related costs, decreased
trading and marketing margins relative to the strong results in 2014 at
Emera Energy, and restructuring cost impacts at BLPC.

After-tax mark-to-market adjustments positively affected net
income by $11.7 million or $0.08 per common share in Q3 2015, primarily
due to favorable changes in gas and power contract positions.
Year-to-date after-tax mark-to-market adjustments decreased net income
by $37.8 million or $0.26 per common share.

Cash flow from operations decreased $1.5 million to $583.8
million for the nine months ending September 30^th 2015
compared to the same period last year. The decrease was primarily due to
lower trading and marketing margin at Emera Energy Services, payment of
acquisition related costs on the pending TECO Energy acquisition and
demand side management costs deferred at NSPI. This was partially offset
by the performance of the New England Gas Generating Facilities and
collection of prior year fuel costs at NSPI.

Segmented Results

Emera reports its results in six operating segments: Nova Scotia Power
Inc., Emera Maine, Emera Caribbean, Pipelines, Emera Energy, and
Corporate & Other.

Quarterly Segmented Results (in millions of
$CAD, except per share amounts)

		Adjusted Net Income(1)
		Q3 2015		Q3 2014		YTD 2015		YTD 2014
Nova Scotia Power Inc.		$4.9		$10.9		$89.8		$94.8
Emera Maine		$14.7		$13.3		$39.9		$30.7
Emera Caribbean		$13.6		$8.2		$27.2		$22.6
Pipelines*		$10.3		$8.7		$29.5		$24.2
Emera Energy*		$14.9		$10.7		$94.7		$76.9
Corporate & Other		$(35.1)		$(1.9)		$(38.2)		$(8.5)
TOTAL		$23.3		$49.9		$242.9		$240.7
Adjusted EPS (basic)(1)		$0.16		$0.35		$1.67		$1.68

*Adjusted net income⁽¹⁾ excludes after-tax
mark-to-market gain in Emera Energy and Pipelines of $11.7 million in Q3
2015 (Q3 2014, after-tax mark-to-market loss of $21.7 million). YTD
2015 Adjusted net income⁽¹⁾ excludes after-tax
mark-to-market loss of $37.8 million (YTD 2014, after-tax mark-to-market
gain of $14.8 million)

Nova Scotia Power Inc.’s net income was $4.9 million in Q3 2015,
a decrease of $6.0 million from $10.9 million in Q3 2014. The decrease
is primarily due to timing; NSPI’s earnings for the full year are
expected to grow modestly compared to 2014. NSPI’s net income for
year-to-date was $89.8 million compared to $94.8 million for the same
period last year.

Emera Maine contributed $14.7 million to consolidated net income
in Q3 2015, an increase of $1.4 million compared to Q3 2014 net income
of $13.3 million. The higher net income was primarily due to the impact
of a stronger USD. For the nine months ended September 30^th,
2015 Emera Maine’s net income was $39.9 million compared to $30.7
million for the same period last year.

Emera Caribbean’s net income of $13.6 million in Q3 2015
represents an increase of $5.4 million compared to Q3 2014 income of
$8.2 million. The increase was primarily due to a decrease in OM&G at
Grand Bahama Power Company Limited (GBPC), reduced maintenance costs and
payroll savings at BLPC, and the strengthening foreign currencies. In Q3
2014, OM&G was affected by a planned outage at GBPC. Emera Caribbean’s
net income year-to-date was $27.2 million compared to $22.6 million for
the same period last year.

Pipelines’ net income, adjusted to exclude mark-to-market
changes, was $10.3 million in Q3 2015, an increase of $1.6 million over
Q3 2014. The increase was primarily due to lower interest expense and
increased transmission revenue from M&NP and the impact of a stronger
USD. Pipelines’ adjusted net income for the nine months ended September
30^th, 2015 was $ 29.5 million, an increase of $5.3 million
over the same period last year.

Emera Energy’s net income, adjusted to exclude mark-to-market
changes, was $14.9 million in Q3 2015 compared to $10.7 million in the
same quarter last year. The $4.2 million increase was primarily due to
increased electricity sales quarter over quarter, and lower income tax
expense. In Q3 2014, Bridgeport Energy was offline to complete a major
outage and upgrade. This increase was partially offset by a decrease in
trading and marketing margin and increased interest expense as a result
of higher interest rates. Emera Energy’s adjusted net income increased
to $94.7 million for the nine months ending September 30^th,
2015 (YTD 2014: $76.9 million).

Corporate & Other’s net loss was $35.1 million in Q3 2015
compared to a loss of $1.9 million in Q3 2014. The higher loss was
primarily due to $29.2 million in items affecting earnings
quarter-over-quarter attributable to $20.1 million (after-tax) of
acquisition related costs on the pending acquisition of TECO Energy and
a $9.1 million after-tax gain on dilution of Emera’s equity investment
in APUC recorded in Q3 2014.The quarter-over-quarter variance was also
due to higher deferred compensation partially affected by Emera’s higher
share price. Corporate and Other recorded a loss of $38.2 million
year-to-date compared to a loss of $8.5 million for the same period last
year.

⁽¹⁾ 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 the non-GAAP measures by adjusting
certain GAAP and non-GAAP measures for specific items the Company
believes are significant, but not reflective of underlying operations in
the period. Refer to the Non-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. Actual future
results may differ materially. Additional information related to Emera,
including the company’s Annual Information Form, can be found on SEDAR
at www.sedar.com.

Teleconference Call

The company will be hosting a teleconference Monday, November 16, 2015
at 12:00pm Atlantic time (11:00am Toronto/Montreal/New York; 10:00am
Winnipeg; 9:00am Calgary; 8:00am Vancouver) to discuss the Q3 2015
financial results.

Analysts and other interested parties in North America wanting to
participate in the call should dial 1 (888) 241-0394 at least 10 minutes
prior to the start of the call. International participants wanting to
participate should dial (647) 427-3413. No pass code is required. The
teleconference will be recorded. If you are unable to join the
teleconference live, you can dial for playback, toll-free at
1-855-859-2056. The Conference ID is 56514308 (available until midnight,
December 4, 2015).

The teleconference will also be web cast live at emera.com
and available for playback for one year.

About Emera

Emera Inc. is geographically diverse energy and services company
headquartered in Halifax, Nova Scotia with approximately $11 billion in
assets and 2014 revenues of $2.97 billion. The company invests in
electricity generation, transmission and distribution, as well as gas
transmission and utility energy services. Emera's strategy is focused on
the transformation of the electricity industry to cleaner generation and
the delivery of that clean energy to market. Emera has investments
throughout northeastern North America, and in four Caribbean countries.
Emera continues to target having 75-85% of its adjusted earnings come
from rate-regulated businesses. Emera common and preferred shares are
listed on the Toronto Stock Exchange and trade respectively under the
symbol EMA, EMA.PR.A, EMA.PR.B, EMA.PR.C, EMA.PR.E, and EMA.PR.F and the
instalment receipts are listed and trade under the symbol EMA.IR.
Additional Information can be accessed at www.emera.com
or at www.sedar.com.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151113005907/en/

Source: Business Wire
(November 13, 2015 - 5:18 PM EST)

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