"The quarter also saw the successful closing of the Willow Valley Water Company acquisition which complements our existing regional footprint in northwestern Arizona" said Mr. Lee.
Highlights of EPCOR's financial performance are as follows:
- Net income was $67 million and $145 million for the three and six months ended June 30, 2016, respectively, compared with $139 million and $208 million for the corresponding periods in the previous year. Net income was lower in part due to the gains on the partial sell-down and reclassification of the Company's investment in Capital Power L.P. in April 2015 with no corresponding gains in 2016, less favorable fair value adjustments related to financial electricity purchase contracts, and lower income from Capital Power Corporation and its subsidiaries.
Net income from core operations was $68 million and $143 million for the three and six months ended June 30, 2016, respectively, compared with $48 million and $98 million for the corresponding periods in the previous year. The increase in net income from core operations is primarily due to higher approved electricity and water customer rates and gains on sales of surplus land.
Net cash flows from operating activities was $223 million for the six months ended June 30, 2016, compared with $283 million for the corresponding period in the previous year. The decrease was primarily due to a lower favorable change in non-cash operating working capital.
Investment in capital projects was $122 million and $210 million for the three and six months ended June 30, 2016, respectively, compared with $121 million and $191 million for the corresponding periods in the previous year. The year-to-date increase of $19 million was primarily due to increased spending in the Distribution and Transmission segment on the Advanced Meter Infrastructure Project and the Work Centre Redevelopment Project.
Management's discussion and analysis (MD&A) of the quarterly results are shown below. The MD&A and the unaudited condensed consolidated interim financial statements are available on EPCOR's website (www.epcor.com) and SEDAR (www.sedar.com).
EPCOR's wholly owned subsidiaries build, own and operate electrical transmission and distribution networks, water and wastewater treatment facilities and infrastructure in Canada and the United States. The Company's subsidiaries also provide electricity and water services and products to residential and commercial customers. EPCOR, headquartered in Edmonton, is an Alberta Top 70 employer. EPCOR's website address is www.epcor.com.