Prompted by overall strength in its various segments and the addition of Centra Gas, British Columbia-based BC Gas Inc. posted earnings of C$105.8 million or C$2.45/share for 2002, compared to earnings of C$84.6 million or C$2.21/share for the same period in 2001.

“Each of our business units delivered improved financial performance in 2002, helping us achieve our strategic and financial goals,” said CEO John Reid.

The company’s boost in earnings was led by its natural gas distribution arm, which contributed C$92.4 million in earnings in 2002, a sizeable increase over the C$67.8 million contribution in 2001. BC’s acquisition of distributor Centra Gas (see Daily GPI, Jan. 2, 2002) contributed C$22.9 million to full year results. The contribution from BC Gas Utility increased from C$67.8 million in 2001 to C$69.5 million for 2002 mainly as a result of lower interest costs.

In addition to the Centra purchase, Reid said the company’s two other major accomplishments on the year were the completion of the Corridor Pipeline on time and on budget and the acquisition of a one-third interest in the Express Pipeline, both of which transport petroleum products.

BC Gas’ petroleum transportation segment also upped its contribution from a year ago. The segment posted earnings of C$29.3 million in 2002, a slight increase over its 2001 output of C$27.3 million.

“The Express Pipeline acquisition is an excellent strategic fit that will deliver immediate shareholder value and provide opportunities for significant future growth through pipeline expansion,” Reid said. With the Corridor, Trans Mountain and Express pipelines, Reid noted that BC Gas can provide producers in Alberta with access to each of the key markets for growing oil sands production.

“We are bringing the Trans Mountain and EnCana Pipelines employees together under a new name – Terasen Pipelines – that will focus on the safe, reliable and efficient operation of all of our petroleum pipeline businesses,” Reid added. “We are continuing to follow a focused, low risk strategy of strengthening and expanding our base businesses and this is delivering consistent results and attractive growth for investors.”

BC Gas provides energy and utility services in western Canada. Through BC Gas Utility and Centra Gas British Columbia, the company distributes natural gas to 850,000 customers, representing more than 95% of natural gas consumers in British Columbia.

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