BC Gas Inc. said its earnings were up 40% for the first nine months of 2002 to C$49.8 million or C$1.17/share mainly because of its acquisition of Centra Gas British Columbia Inc (see Daily GPI, Jan. 2). However, the company reported a third quarter loss of C$19.1 million or C$0.44 per share compared to a loss of C$22.3 million or C$0.58 per share in 3Q2001.

“These third quarter results represent continued solid performance from our various business units and we remain on track to deliver on our full year financial targets,” said CEO John Reid. “The acquisition of Centra Gas is delivering the expected results, and I am particularly pleased with the improved financial performance of our energy and utility services businesses, including our water services and international consulting businesses.”

Earnings from natural gas distribution increased by C$19.7 million to C$42.4 million in the first nine months of 2002 mainly as a result of the acquisition of Centra Gas. BC Gas Utility earnings increased from C$22.7 million in 2001 to C$25.3 million in 2002 mainly as a result of lower interest costs. For the third quarter, the company’s entire gas distribution segment posted a loss of C$21.4 million, a step upward when compared to the company’s loss of C$27.9 million during 3Q2001.

Going forward, Reid added that the key focus for BC Gas Utility and Centra Gas in the fourth quarter is the ongoing processes to establish rates for 2003 and develop multi-year regulatory settlements. “Fair, incentive-based regulation will deliver substantial benefits for shareholders and customers,” he said. “I am optimistic that we will be able to work with the BC Utilities Commission to develop an agreement that will align customer and shareholder interests and allow us to continue providing value to our customers across British Columbia.”

The board of BC Gas also declared a quarterly dividend of C$0.36 per share. BC Gas is a provider of energy and utility services in Western Canada. Through BC Gas Utility and Centra Gas British Columbia, the company distributes natural gas to 847,000 customers, representing more than 95% of natural gas consumers in British Columbia.

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