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Last updated on April 23, 2014 at 1:22 EDT

Valener announces its financial results for the first quarter of fiscal 2013

February 11, 2013

$4.1 MILLION INCREASE IN RECURRING INCOME STEMMING FROM THE EXPECTED
EARNINGS FOLLOWING GAZ MÉTRO’S ACQUISITION OF CVPS

Highlights:

Valener

        --  $14.3 million in recurring net income, up $4.1 million; and
        --  $9.4 million in dividends paid to common shareholders, i.e.,
            $0.25 per common share, and $1.6 million to preferred
            shareholders.

Gaz Métro

        --  $67.8 million in recurring net income, up $12.5 million;
        --  $6.3 million increase in the net income generated by energy
            distribution in Vermont following the acquisition of Central
            Vermont Public Service;
        --  5.9% increase in natural gas deliveries to the industrial
            market in Quebec; and
        --  $14.7 million net gain on the disposal of Gaz Métro's interest
            in HydroSolution.

Seigneurie de Beaupré wind power projects

        --  Decree issued by the Government of Quebec authorizing the
            68-megawatt Seigneurie de Beaupré wind power project 4.

MONTREAL, Feb. 11, 2013 /CNW Telbec/ – Valener Inc. (Valener) (TSX:
VNR), the public investment vehicle in Gaz Métro Limited Partnership
(Gaz Métro), is today announcing its financial results for the first
quarter ended December 31, 2012.

Valener’s results

Excluding non-recurring items, Valener’s net income attributable to
common shareholders totalled $14.3 million ($0.38 per common share) for
the first quarter of fiscal 2013 compared to $10.2 million ($0.27 per
common share) for the year-earlier first quarter, a $4.1 million
increase ($0.11 per common share) owing primarily to the additional
earnings that Gaz Métro realized from energy distribution activities in
Vermont given the June 2012 acquisition of Central Vermont Public
Service Corporation (CVPS) and to higher income from natural gas
distribution in Quebec.

“Valener’s first quarter results reflect the financial and commercial
strategy of Gaz Métro, Valener’s primary investment. Gaz Métro
continues to benefit from the favourable competitive position of
natural gas, leveraging it to deploy its strategy and development
initiatives. Valener’s shareholders are now reaping the rewards of
these initiatives,” said Pierre Monahan, Chairman of Valener’s board of
directors.

A profitable investment strategy

“In acquiring CVPS and merging it with Green Mountain Power, Gaz Métro
remained consistent with its strategy of focusing on energy
distribution, transportation and production in Quebec and Vermont. This
transaction is paying off, reflecting positively on Gaz Métro’s and
Valener’s results for the first quarter of fiscal 2013. Also, in line
with this vision, during the quarter, Gaz Métro disposed of its
interest in HydroSolution, which operates a major rental fleet of
electric hot water heaters, for $44.4 million. The transaction
generated a net gain on disposal of $14.7 million and freed up cash
flow to be allocated to projects in line with Gaz Métro’s prudent and
targeted growth strategy” said Sophie Brochu, President and Chief
Executive Officer of Gaz Métro.

A step forward in the development of the Seigneurie de Beaupré wind
power projects

Valener and Gaz Métro indirectly own interests of 24.5% and 25.5%,
respectively, in the Seigneurie de Beaupré wind power projects
developed jointly with Boralex Inc. (the “consortium”).

On January 22, 2013, a decree was issued by the Government of Quebec, on
the recommendation of the Minister of Sustainable Development,
Environment, Wildlife and Parks (Ministre du Développement durable, de l’Environnement, de la Faune et
des Parcs)
, authorizing the wind power project 4. Having successfully completed
the key environmental approvals stage, the consortium can now move on
to the next steps of, notably, applying for construction permits,
signing final agreements with Enercon, the turbine and maintenance
service supplier with world-renowned expertise, and arranging the
financing.

“Obtaining the environmental approval for Seigneurie de Beaupré wind
power project 4 is another step in asserting our renewable energy
presence and thus helping to shape Quebec’s energy profile of tomorrow.
This approval is also testament to the quality of the projects that the
consortium is initiating to help develop Quebec’s renewable energy
sector,” said Ms. Brochu.

Wind power project 4 represents a total investment of approximately $190
million (including financing costs) for a total installed capacity of
68 megawatts. Start-up is scheduled for December 2014.

The construction work on wind power projects 2 and 3 with an installed
capacity of 272 megawatts ceased for the winter on December 21, 2012
and is expected to resume in spring 2013. These projects, which are
scheduled for start-up in December 2013, represent a total investment
of approximately $750 million (including financing costs).

Declaration of quarterly dividends

Valener’s board of directors declared a quarterly dividend of $0.25 per
common share for the quarter ending March 31, 2013, payable on April
15, 2013, to shareholders of record at the close of business on March
28, 2013. Valener expects to maintain the dividend at $0.25 per common
share for each quarter of fiscal 2013.

Under Valener’s dividend reinvestment plan, the board of directors
approved the reinvestment of dividends into additional common shares,
for the dividend payable on April 15, 2013, by way of an issuance of
new common shares of Valener, at a 5% discount compared to the weighted
average price for the five trading days immediately preceding the
dividend payment date.

The board of directors also declared a quarterly dividend of $0.271875
per Series A preferred share for the period of January 16, 2013 to
April 15, 2013, payable on April 15, 2013 to the shareholders of record
at the close of business on April 9, 2013.

Consolidated net income attributable to the common shareholders,
excluding the share in the non­recurring items of Gaz Métro, net of
income taxes


                                                 3 months ended December 31

    (in millions of dollars, unless otherwise
    indicated)                                    2012                 2011

    Consolidated net income                       18.6                 10.1

      Share in the non-recurring items of Gaz
      Métro                                      (4.3)                  0.1

      Income taxes on the share in the
      non-recurring items of Gaz Métro             1.1                    -

    Consolidated net income, excluding the share
    in the non-recurring items
    of Gaz Métro, net of income taxes             15.4                 10.2

    Less: Cumulative dividends on Series A
    preferred shares                               1.1                    -

    Consolidated net income attributable to the
    common shareholders,
    excluding the share in the non-recurring
    items of Gaz Métro, net of
    income taxes(1)                               14.3                 10.2

    Weighted average number of common shares
    outstanding (in millions of
    common shares)                                37.6                 37.4

    Consolidated net income attributable to the
    common shareholders,
    excluding the share in the non-recurring
    items of Gaz Métro, net of
    income taxes, per common share (in $)(1)      0.38                 0.27

    (1) These measures are financial measures that are not defined in
        Canadian generally accepted accounting principles
        (GAAP). For additional information, refer to the Non-GAAP Financial
        Measures heading in Valener's MD&A for the
        quarter ended December 31, 2012.

Gaz Métro’s results

First-quarter net income attributable to the Partners of Gaz Métro,
excluding non-recurring items, totalled $67.8 million, a $12.5 million
year-over-year increase that was essentially due to a $6.3 million
increase in net income from energy distribution activities in Vermont
given the additional earnings, net of financing costs, from the June
2012 CVPS acquisition, and to a $5.8 million increase in net income
from the natural gas distribution activity in Quebec, as explained
below.

Quebec natural gas distribution (Gaz Métro-QDA)

For the first quarter of fiscal 2013, Gaz Métro-QDA’s normalized natural
gas deliveries totalled 1,582 million cubic metres, up 2.9% from 1,538
million cubic metres in the first quarter of last year.

In the industrial market, first-quarter volumes rose 5.9% year over
year, due to greater consumption, particularly in the pulp and paper
and metallurgy sectors.

Normalized deliveries to the residential and commercial markets declined
0.6% and 1.5%, respectively, from the first quarter of fiscal 2012,
essentially due to energy conservation measures undertaken by Gaz
Métro-QDA’s customers, partly offset by new sales.

For the first quarter of fiscal 2013, Gaz Métro-QDA’s net income
attributable to the Partners of Gaz Métro totalled $49.5 million, a
$5.8 million year-over-year increase that was essentially due to:

        --  a timing difference between the revenue recognition profile of
            the distribution service, which follows the customers'
            consumption profile, and that of costs, resulting in a $2.9
            million increase in net income. However, this increase is
            expected to reverse in the next quarters of the current fiscal
            year;
        --  a favourable impact of closer-to-normal temperatures in the
            first quarter of fiscal 2013, whereas temperatures were
            considerably warmer-than-normal in the first quarter of
            fiscal 2012. These weather conditions, which were unique to the
            first quarter of fiscal 2012, had adversely affected the net
            income of this period because, while the normalization
            mechanism had been applied, it did not fully eliminate the
            impact on revenues;
        --  the impact of higher load-balancing and transportation costs in
            the first quarter of fiscal 2012 resulting from temperatures,
            as explained above, and from the higher average costs for
            load-balancing tools resulting from changing demand, in the
            first quarter of fiscal 2012, of customers in the industrial
            market, both of which adversely affected the net income for the
            period; and
        --  a $1.2 million increase in the gross margin of the distribution
            service due to higher deliveries to the industrial market
            compared to the 2013 rate case, partly mitigated by lower
            deliveries of short-term interruptible service sales;

mitigated by:

        --  the unfavourable impact of a decrease in the rate of return on
            deemed common equity and in revenues related to the Global
            Energy Efficiency Plan (GEEP) performance incentive.

Anticipated impacts of the 2013 rate case proposed to the Régie de
l’énergie (“Régie”)

In Phase II of its 2013 rate case, filed in December 2012, Gaz Métro-QDA
proposed that the Régie suspend application of the automatic adjustment
formula on the established rate of return on deemed common equity. Gaz
Métro-QDA submitted this proposal, because, in its view, the rate
obtained using this automatic adjustment formula is not reasonable for
fiscal 2013, in particular due to the low long-term interest rates
prevailing in the market. In a January 14, 2013 procedural decision,
the Régie estimated that it might be appropriate, for fiscal 2013, to
suspend application of the automatic adjustment formula and maintain
the 8.90% rate of return on deemed common equity (excluding
productivity gains) set in 2012. While a hearing is scheduled for
February 2013 to hear Gaz Métro-QDA and intervenors on this matter, Gaz
Métro-QDA has recognized its fiscal 2013 first quarter revenues based
on an 8.90% rate of return on deemed common equity, i.e., the rate of
return mentioned by the Régie on January 14, 2013. Gaz Métro-QDA’s
revenues for the first quarter of fiscal 2013 also reflect the
cost-of-service parameters included in the 2013 rate case.

The rate case proposed to the Régie for fiscal 2013, based on an 8.90%
rate of return, is expected to translate into a $6.6 million decrease
in net income for the 12 months of fiscal 2013 compared to the net
income realized in fiscal 2012. This decrease would primarily stem from
the following factors:

        --  a lower rate of return on the deemed common equity proposed in
            2013 compared to that of 9.69% (including productivity gains)
            authorized in 2012;
        --  a $4.0 million decrease in revenues related to the GEEP
            performance incentive; and
        --  the impact of having no share in overearnings anticipated in
            the 2013 rate case, whereas a $1.0 million share had been
            realized in fiscal 2012;

partially offset by:

        --  an increase in the average rate base combined with an increase
            in investments not included in the rate base.

A quarterly breakdown of how the 2013 rate case proposed to the Régie
impacts net income attributable to the Partners of Gaz Métro shows
higher net income attributable to the Partners of Gaz Métro in the
first two quarters of fiscal 2013 and lower net income attributable to
the Partners of Gaz Métro in the last two quarters compared to the same
periods in fiscal 2012.

Incentive mechanism

The Gaz Métro-QDA incentive mechanism, in effect since October 1, 2007,
expired on September 30, 2012. On September 2, 2011, Gaz Métro-QDA
filed an incentive mechanism proposal with the Régie that was supported
by a majority of the intervenors. On June 28, 2012, the Régie issued a
decision denying the mechanism proposed by the working group and asked
Gaz Métro-QDA to file a new incentive mechanism proposal as part of a
more traditional framework. On November 30, 2012, Gaz Métro-QDA filed a
new incentive mechanism proposal for distribution activities to be
applicable for a five-year period as of fiscal 2014. Hearings on this
proposal will be held in the coming months.

Service to the Côte-Nord region

The Côte-Nord region is the last of Quebec’s major industrial regions
that does not yet benefit from the environmental and economic
advantages of natural gas. The project to serve the Côte-Nord region,
which involves laying down 450 km of pipeline to connect Saguenay to
Sept-Þles, has a preliminary estimated cost of $750 million. To make a
fully informed decision on a project of such magnitude, the Government
of Quebec and Gaz Métro are exercising due diligence through three
comprehensive feasibility studies, the conclusions of which, initially
expected before the end of the 2012 calendar year, are now expected by
March 31, 2013. If the conclusions are positive, Gaz Métro-QDA will
continue the regulatory and environmental approval process in 2013. If
all the necessary approvals are obtained, the preparatory work and
construction of Gaz Métro-QDA’s Côte-Nord service could begin in 2015
with a view to start-up in 2016.

Energy Distribution in Vermont

The first-quarter net income attributable to the Partners of Gaz Métro
generated by natural gas and electricity distribution activities in
Vermont increased $6.3 million from the first quarter of fiscal 2012.

This increase was mainly due to:

        --  an increase in the net income of Green Mountain Power
            Corporation (GMP) given the June 2012 CVPS acquisition,
            mitigated by a $1.2 million unfavourable impact from costs
            incurred in the wake of Hurricane Sandy, net of the portion
            that can be recovered in future rates through the profit and
            loss sharing mechanism; and
        --  a $5.5 million increase in the shares in the earnings of
            entities subject to significant influence following the
            acquisition of CVPS, which also owned an interest in these
            entities subject to significant influence;

mitigated by:

        --  a $3.8 million increase in financing costs resulting mainly
            from the additional financing assumed for the CVPS acquisition.

The system development project of Vermont Gas Systems, Inc. (VGS)

On October 17, 2012, VGS announced an agreement with International Paper
Company under which one of that company’s mills will purchase, under a
long-term contract, natural gas from VGS starting at the end of the
2015 calendar year. The required system extension would be an expansion
of the planned VGS system extension into Addison County in order to
serve the communities of Vergennes and Middlebury.

In fiscal 2013, VGS plans on seeking the regulatory approvals needed for
the construction of the additional facilities required to deliver
natural gas to International Paper Company’s mill. On December 20,
2012, VGS filed for the regulatory approval of the extension into
Addison County. A decision from the VPSB is expected by the end of
fiscal 2013 such that construction may commence in 2014. If approved,
these system extensions could give rise to an investment of
approximately US$100 million.

Kingdom Community Wind (KCW) project

At the end of fiscal 2011, GMP began construction of the KCW project, a
63-megawatt wind power project located in Lowell, Vermont. This US$150
million, 21-turbine wind power project can supply power to more than
24,000 households consisting of GMP’s customers and members of the
Vermont Electric Cooperative, Inc. Construction of the wind farm has
been completed, and the 21 turbines have been in service since November
20, 2012.

Natural Gas Transportation

The segment’s first-quarter net income attributable to the Partners of
Gaz Métro was up $0.3 million compared to the first quarter of fiscal
2012, mainly due to a $1.5 million increase in the share of the income
before income taxes of Portland Natural Gas Transmission System
(PNGTS), partly as a result of the fact that less natural gas was
available on other systems, thus helping to increase its short-term
sales, mitigated by a $1.1 million income tax expense allocation from
Gaz Métro’s wholly owned subsidiary 9265-0860 Québec Inc. to Trans
Québec & Maritimes Pipeline (TQM).

9265-0860 Québec Inc. was created in 2012 to offset the effects of a
change in fiscal year-end imposed by the Income Tax Act (Canada) applicable to multi-tiered partnership structures. Since
October 1, 2012, the income tax expense related to TQM has been
recognized by Gaz Métro rather than by its Partners, Valener and Gaz
Métro inc. (GMi).

Energy Production

This new segment consists of non-regulated energy production activities
related to the wind farm construction projects located on the private
lands of Seigneurie de Beaupré. The wind power projects are under
construction and therefore have not yet begun to generate revenue.

Energy Services, Storage and Other

This segment now includes the natural gas storage activities that had
previously been presented in a separate segment as at September 30,
2012.

Aside from the $14.7 million net gain realized on the disposal of the
interest in HydroSolution, the segment’s net income attributable to the
Partners of Gaz Métro totalled $2.6 million in the first quarter of
fiscal 2013, a similar amount to that of the same period in fiscal
2012.

This segment includes the activities of Gaz Métro Transport Solutions,
L.P. (Transport Solutions), an indirect subsidiary of Gaz Métro created
to develop natural gas for use as fuel by the transportation industry.

Natural gas as transportation fuel

Since July 2011, Transport Solutions has been installing the facilities
needed to supply liquefied natural gas (LNG) to 180 freight trucks
under an agreement entered into with Transport Robert 1973 Ltée (Robert
Transport). For Transport Solutions, the project represents an
investment of approximately $5 million. Two private stations set up at
Robert Transport’s terminals in Boucherville and Mississauga are
currently in service. Pending completion of a permanent public station
in Lévis, in October 2012 Transport Solutions installed a temporary
mobile fuelling station on the Robert Transport property in Lévis,
which can also service other carriers. For fiscal 2013, there are also
plans for building two other permanent public stations in
Rivière-du-Loup and Cornwall. While waiting for these permanent public
stations to be built and in order to accelerate the development of the
public supply network, two other mobile fuelling stations have been
ordered. These mobile stations may be deployed in different locations
pending the construction of permanent stations.

Gaz Métro’s segment results – Consolidated net income attributable to
the Partners of Gaz Métro


    For the quarters ended December 31 (1)                                 

    (in millions of dollars)                          2012    2011   Change

    Energy Distribution                                                    

      Gaz Métro-QDA                                   49.5    43.7      5.8

      VGS and GMP                                     17.6     7.5     10.1

      Financing costs of investments in this
      segment (2)                                    (4.9)   (1.1)    (3.8)

                                                      62.2    50.1     12.1

    Natural Gas Transportation                                             

      TQM, PNGTS and Champion Pipe Line Corporation
      Limited                                          4.8     5.1    (0.3)

      Financing costs of investments in this
      segment (2)                                    (0.4)   (1.0)      0.6

                                                       4.4     4.1      0.3

    Energy Production(3)                                                   

      Gaz Métro Éole inc. and Gaz Métro Éole 4 inc.  (0.1)   (0.6)      0.5

      Financing costs of investments in this
      segment (2)                                        -       -        -

                                                     (0.1)   (0.6)      0.5

    Energy Services, Storage and Other(3)                                  

      Energy and storage                              17.7     3.1     14.6

      Financing costs of investments in this
      segment (2)                                    (0.4)   (0.8)      0.4

      Net gain on the disposal of the interest in
      HydroSolution                                 (14.7)       -   (14.7)

                                                       2.6     2.3      0.3

    Corporate Affairs                                                      

      Corporate Affairs                              (1.3)   (1.1)    (0.2)

      Costs related to the CVPS acquisition              -     0.5    (0.5)

                                                     (1.3)   (0.6)    (0.7)

    Consolidated net income attributable to the
    Partners of
    Gaz Métro, excluding non-recurring items          67.8    55.3     12.5

    Non-recurring items                               14.7   (0.5)     15.2

    Consolidated net income attributable to the
    Partners of Gaz Métro                             82.5    54.8     27.7

    (1) Seasonal temperature fluctuations influence the energy consumption
        levels of customers and in turn have an influence
        on Gaz Métro's interim consolidated financial results.
        Historically, Gaz Métro's revenues and profitability are higher in
        the
        first two quarters of a fiscal year than in the last two quarters.

    (2) These costs consist of the interest on the long-term debt incurred
        by the Partnership to finance investments in the
        subsidiaries, joint ventures and entities subject to significant
        influence of each segment.

    (3) During the first quarter of fiscal 2013, Gaz Métro modified its
        financial reporting structure for segment disclosures given
        the development of important wind power projects and the sale of
        certain companies. Created for this new structure was the Energy
        Production segment, which had previously been included in the
        Corporate Affairs and Other segment. Gaz Métro also
        combined the Storage segment with the Energy Services and Other
        segment to create a single segment named Energy
        Services, Storage and Other. Last year's first-quarter figures have
        been reclassified to present financial information that
        reflects the new business segments.

Conference call

Valener will hold a conference call with financial analysts today,
Monday, February 11, 2013 at 11 am (Eastern Time) to discuss its
results and those of Gaz Métro for the first quarter ended December 31,
2012.

Pursuant to an administration and management support agreement entered
into between Valener and Gaz Métro on September 30, 2010, Gaz Métro
acts as manager of Valener. As such, Pierre Despars, Executive
Vice-President, Corporate Affairs and Chief Financial Officer of Gaz
Métro inc., the General Partner of Gaz Métro, will be the speaker, and
a question period will follow.

The call will be broadcast live and is accessible by dialling 647-427-7450 or toll-free 1-888-231-8191. It will also be available via webcast on Valener’s website (www.valener.com) in the Events & Presentations page of the Investors section.

The media and other interested parties are invited to listen in. After
the conference call, the speaker will be available for media interviews
and questions.

For 30 days afterward, a rebroadcast will be accessible by dialling
416-849-0833 or toll-free 1-855-859-2056 (access code: 88001458). For
90 days afterward, the call can be played back on the above-mentioned
website.

Annual shareholders’ meeting

Valener will hold its annual shareholders’ meeting on March 27, 2013 at
10 am (Eastern Time) at the Palais des congrès de Montréal in Montréal,
Quebec.

Overview of Valener

Valener owns an economic interest of approximately 29% in Gaz Métro.
Valener therefore has a stake in the energy industry and benefits from
Gaz Métro’s diversified profile, both in terms of geography and
business segment. Valener also owns a 24.5% indirect interest in the
wind power projects developed with Gaz Métro and Boralex Inc. on the
private lands of Séminaire de Québec. Valener’s common shares and
preferred shares are listed on the Toronto Stock Exchange under the
“VNR” trading symbol for common shares and under the “VNR.PR.A” trading
symbol for Series A preferred shares. www.valener.com

Overview of Gaz Métro

With more than $5 billion in assets, Gaz Métro is a leading energy
provider. It is the largest natural gas distribution company in Quebec,
where its more than 10,000-km underground network of pipelines serves
300 municipalities and more than 185,000 customers. Gaz Métro is also
present in Vermont, producing electricity and distributing electricity
and natural gas to meet the needs of some 300,000 customers. Gaz Métro
is actively involved in the development of innovative, promising energy
projects such as the production of wind power, the use of natural gas
as a transportation fuel, and the development of biomethane. Gaz Métro
is committed to ensuring the satisfaction of its customers, providing
support to businesses, local organizations, families and communities,
and meeting the expectations of its Partners (Gaz Métro inc. and
Valener) and employees. www.gazmetro.com

Cautionary note regarding forward-looking statements

This press release may contain forward-looking information within the
meaning of applicable securities laws. Such forward-looking information
reflects the intentions, plans, expectations and opinions of the
management of GMi, in its capacity as General Partner of Gaz Métro, and
acting as manager of Valener (the management of the manager) and is
based on information currently available to the management of the
manager and assumptions about future events. Forward-looking statements
can often be identified by words such as “plans,” “expects,”
“estimates,” “forecasts,” “intends,” “anticipates” or “believes” or
similar expressions, including the negative and conjugated forms of
these words. Forward-looking statements involve known and unknown risks
and uncertainties and other factors beyond the control of the
management of the manager. A number of factors could cause the actual
results of Valener or of Gaz Métro to differ significantly from current
expectations, as they are described in the forward-looking statements,
including but not limited to the general nature of the aforementioned,
terms of decisions rendered by regulatory agencies, the competitiveness
of natural gas in relation to other energy sources, the reliability of
natural gas and electricity supply, the integrity of the natural gas
and electricity distribution systems, the progress of wind power
projects and other development projects, the ability to complete
attractive acquisitions and the related financing and integration
aspects, the ability to secure future financing, general economic
conditions, exchange rate and interest rate fluctuations, weather
conditions and other factors described in the “Risk Factors Relating to
Valener” and the “Risk Factors Relating to Gaz Métro” sections of
Valener’s MD&A for the year ended September 30, 2012 and in Gaz Métro’s
and Valener’s disclosure filings. Although the forward-looking
statements contained herein are based on what the management of the
manager believes to be reasonable assumptions, in particular,
assumptions to the effect that no unforeseen changes in the legislative
and regulatory framework of energy markets in Quebec and in the New
England states will occur; that the applications filed with the Régie,
in particular the rate applications and the authorized return on deemed
equity applications will be granted as filed; that natural gas prices
will remain competitive; and that no significant event occurring
outside the ordinary course of business, such as a natural disaster or
other calamity, will occur; that Gaz Métro will be able to continue
distributing substantially all of its net income (excluding
non-recurring items); that the wind power projects in which Valener and
Gaz Métro own indirect interests will be completed on schedule and as
per specification; that GMP will be able to quickly and effectively
integrate CVPS’s operations; and that the conclusions of studies on the
project to serve the Côte-Nord region will be positive and that the
regulatory approvals will be obtained; in addition to the other
assumptions described in the Valener and Gaz Métro MD&As for the
quarter ended December 31, 2012, the management of the manager cannot
assure investors that actual results will be consistent with these
forward-looking statements. These forward-looking statements are made
as of this date, and the management of the manager assumes no
obligation to update or revise them to reflect new events or
circumstances, except as required pursuant to applicable securities
laws. Readers are cautioned to not place undue reliance on these
forward-looking statements.


    HIGHLIGHTS                     

    VALENER INC.                                 3 months ended December 31

    (in millions of dollars,                     2012                  2011
    except for share data, which
    is in dollars, and unless
    otherwise indicated)

                                          (unaudited)           (unaudited)

    CONSOLIDATED INCOME AND CASH
    FLOWS

    Share in the net income of    $              23.9   $              15.9
    Gaz Métro

    Net income attributable to    $              17.5   $              10.1
    the common shareholders

    Basic and diluted net income  $              0.47   $              0.27
    per common share

    Cash flows related to         $              10.5   $             (4.3)
    operating activities

    Dividends declared per common $              0.25   $              0.25
    share

    Weighted average number of                   37.6                  37.4
    common shares outstanding (in
    millions)

    OTHER INFORMATION                                                      

    Market prices for common
    shares on the Toronto Stock
    Exchange (TSX):

      High                        $             16.27   $             16.29

      Low                         $             15.68   $             13.55

      Close                       $             16.05   $             15.98

    CONSOLIDATED BALANCE SHEETS                                            

                                         December 31,         September 30,
                                                 2012                  2012

                                          (unaudited)             (audited)

    Total assets                  $             779.3   $             765.5

    Total debt                    $              52.0   $              51.4

    Shareholders' equity          $             688.4   $             675.7

    GAZ MÉTRO LIMITED PARTNERSHIP                3 months ended December 31

    (in millions of dollars,                     2012                  2011
    except for unit data, which
    is in dollars, and unless
    otherwise indicated)

                                          (unaudited)           (unaudited)

    CONSOLIDATED INCOME AND CASH
    FLOWS

    Revenues                      $             622.8   $             536.6

    Gross margin                  $             260.6   $             202.8

    Net income attributable to    $              82.5   $              54.8
    the Partners of Gaz Métro

    Cash flows related to         $              66.9   $              80.2
    operating activities

    Purchases of property, plant  $             114.6   $             118.0
    and equipment

    Change in deferred charges    $              50.9   $              42.4
    and credits

    Basic and diluted net income  $              0.56   $              0.43
    per unit attributable to the
    partners of Gaz Métro

    Distributions declared per    $              0.28   $              0.28
    unit to the Partners of
    Gaz Métro

    Weighted average number of                  148.7                 126.3
    units outstanding (in
    millions)

    OTHER INFORMATION                                                      

    Authorized rate of return on
    deemed common equity
    (Gaz Métro's natural gas
    distribution activity in
    Quebec)(1) (3)                              8.90%                 9.69%

    Credit ratings                                                         

      First mortgage bonds                        A/A
      (Standard and Poor's (S&P)
      / DBRS Limited (DBRS)) (2)                                        A/A

      Commercial paper (S&P/DBRS)
      (2)                           A-1(low)/R-1(low)     A-1(low)/R-1(low)

    CONSOLIDATED BALANCE SHEETS                                            

                                         December 31,         September 30,
                                                 2012                  2012

                                          (unaudited)             (audited)

    Total assets                  $           5,307.8   $           5,118.0

    Total debt                    $           2,599.8   $           2,474.1

    Partners' equity attributable
    to the Partners of Gaz Métro  $           1,352.2   $           1,303.3

    Partners' equity per unit
    attributable to the Partners
    of Gaz Métro                  $              9.10   $              8.77

    (1) Including the sharing of productivity gains, if applicable, and
        excluding the Global Energy Efficiency Plan incentive.

    (2) Through its General Partner, Gaz Métro inc.

    (3) Pursuant to the Régie's procedural decision of January 14, 2013,
        the Régie estimated that it might be appropriate to suspend
        application
        of the automatic adjustment formula and to maintain the 8.90% rate
        of return on deemed common equity (excluding productivity gains)
        set
        in 2012.

 

 

 

 

 

SOURCE VALENER INC.


Source: PR Newswire