News Release
July 18, 2002

PACIFIC NORTHERN GAS REPORTS SECOND QUARTER EARNINGS

VANCOUVER, BRITISH COLUMBIA - Pacific Northern Gas Ltd. (PNG) announced today that net income for the first six months of 2002 was $4.2 million, compared with $3.9 million for the corresponding period in 2001. After providing for preferred share dividends, earnings per common share in the first six months of 2002 were $1.14 compared with $1.06 for the first six months of 2001. 

 

The increase in net income is primarily due to weather in the first six months of 2002 being approximately 12 percent colder than in the corresponding period in 2001. 

 

Operating revenues in the first six months of 2002 decreased to $59.5 million as compared with $84.2 million in the first six months of 2001. The decrease in operating revenues is largely due to the decrease in the commodity cost of natural gas that is passed through to customers without markup, as well as a significant reduction in off-system sales in the first six months of 2002, compared with the corresponding period in 2001.

 

Operating margin in the first six months of 2002 increased to $29.2 million, as compared with $26.4 million in the first six months of 2001. The increase in operating margin is due to colder weather, as well as the inclusion of higher compressor fuel costs in rates, compared with the prior year.

 

Net income for the quarter ended June 30, 2002, was $0.9 million, compared with $1.2 million for the quarter ended June 30, 2001. After providing for preferred share dividends, earnings per common share in the quarter ended June 30, 2002, were $0.23 compared with $0.32 in the corresponding period in 2001. The decrease in net income in second quarter 2002 is due to higher tax expense resulting from an increase in non-deductible expenses, compared to the same period in 2001.

 

In order to continue to preserve cash, the board of directors did not declare a quarterly dividend on its Class A and Class B Common Shares for third quarter 2002.

 

Headquartered in Vancouver, British Columbia, Pacific Northern Gas Ltd. (TSE:PNG.A/ PNG.PR.A) owns and operates natural gas transmission and distribution systems. The company’s western transmission line extends from the Duke Energy Gas Transmission (formerly Westcoast Energy) system north of Prince George to tidewater at Kitimat and Prince Rupert, and provides service to 12 communities and a number of industrial facilities.  In the northeast, Pacific Northern’s subsidiary Pacific Northern Gas (N.E.) Ltd. provides gas distribution service in the Dawson Creek, Fort St. John and Tumbler Ridge areas. Further information is available on the company’s Web site at: www.pacificnortherngas.com.

 

Second Quarter Results

6-Month Period Ending June 30

($ thousand, except for per share data)

 

 

 

2002

 

 

2001

Consolidated revenue

$59,460

$84,225

Cost of sales

30,219

57,864

Operating margin

29,241

26,361

 

 

 

Net income applicable to common shares

$4,041

$3,757

Earnings per common share — basic

$1.14

$1.06

Earnings per common share — diluted

$1.12

$1.06

Operating cash flow

$9,123

$8,576



 

Second Quarter Results

3-Month Period Ending June 30

($ thousand, except for per share data)

 

 

 

2002

 

 

2001

Consolidated revenue

$23,370

$29,440

Cost of sales

10,899

17,156

Operating margin

12,471

12,284

 

 

 

Net income applicable to common shares

$809

$1,213

Earnings per common share — basic

$0.23

$0.32

Earnings per common share — diluted

$0.22

$0.32

Operating cash flow

$3,343

$3,551



 

 

 



Contact: Elizabeth Fletcher
Phone: 604/691-5684
24 Hour Phone: n/a
Email: efletcher@duke-energy.com