PIPELINES / Pacific Northern Gas 1997 Performance
TSE SYMBOL: PNG.A PNG.PR.A
FEBRUARY 5, 1998
VANCOUVER, BRITISH COLUMBIA--Pacific Northern Gas Ltd. reported
today a net income for 1997 of $7.93 million, compared with $7.39
million in 1996. After providing for preferred share dividends,
earnings rose 7.5 percent from $2.01 to $2.16 per common share.
Pacific Northern's operating revenues increased to $77.9 million
in 1997 from $62.8 million in the preceding year. A rise in the
aggregate cost of natural gas accounted for $12.3 million of the
increase. Revenues include the contribution of Centra Gas Fort
St. John Inc., which was acquired by the Company effective January
1, 1997.
Commenting on Pacific Northern's performance, President and CEO,
Roy Dyce stated: "Overall we are very pleased with the past year's
results. Targeted contributions to earnings were attained as a
result of the acquisition of the Centra Gas Fort St. John
distribution system and the tax savings realized through
acquisition of Centra Gas Victoria Inc. Record volumes of natural
gas were delivered, and we experienced strong demand for
extensions of gas mains and for service connections to new
customers."
Natural gas deliveries to the Company's largest customer, Methanex
Corporation, reached a record level. The increase was partially
offset by lower deliveries to residential and commercial customers
resulting from warmer than average weather, and by reduced
deliveries to Skeena Cellulose Inc.
During 1997, the Company received authorization from the B.C.
Utilities Commission to recover in rates, effective January 1,
1998, the approved net losses incurred as a result of financial
problems encountered by Skeena Cellulose Inc. A protection order
under the Companies' Creditors Arrangement Act was terminated as
of February 1, 1998, after approval of Skeena's restructuring plan
by unsecured creditors.
The Board of Directors declared a quarterly dividend of 26 cents
per share on the Company's Class A and Class B common shares,
payable March 20 1998, to shareholders of record at the close of
business on March 6, 1998.
Headquartered in Vancouver, B.C., Pacific Northern Gas Ltd. (TSE:
PNG.A/PNG.PR.A) owns and operates a natural gas transmission and
distribution system. The Company's transmission line extends from
the Westcoast Energy Inc. system north of Prince George to
tidewater at Kitimat and Prince Rupert. Distribution systems
serve communities along the transmission line as well as in
northeastern B.C. |
