Emera Inc.: Company Profile and SWOT Analysis by ICDResearch

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									Emera Inc.

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Emera Inc.                                                                      Financial Snapshot

                                                                                Operating Performance
Fast Facts
                                         1894 Barrington Street, Halifax, B3J   The company reported revenue of US$1,559.32
Headquarters Address
                                         2A8,Canada                             million during the fiscal year 2010 (2010). The
                                                                                company's revenue grew at a CAGR of 10.87%
Telephone                                + 1 902 4500507
                                                                                during 2006–2010, with an annual growth of 19.83%
                                                                                over 2009. In 2010, the company recorded an
Fax                                      + 1 902 4286112                        operating margin of 19.44%, as against 25.77% in
                                                                                2009.
Website                                  www.emera.com

Ticker Symbol, Stock Exchange            EMA, Toronto Stock Exchange            Revenue and Margins

Number of Employees                      2,972

Fiscal Year End                          December

Revenue (in US$ million)                 1,559.32

Revenue (in CAD million)                 1,606.10




SWOT Analysis
                                                                                Return on Equity
Strengths                                Weaknesses
                                                                                The company recorded a return on equity (ROE) of
Power generation portfolio:              High debt to equity ratio              14.08% for 2010, as compared to its peers, Maxim
                                                                                Power Corp. (Ticker: MXG), TransAlta Corporation
                                                                                (Ticker: TA) and Capital Power Corporation (Ticker:
Strong liquidity position                Overdependence on NSPI segment         CPX), which recorded ROEs of 10.72%, 8.97% and
                                                                                2.04% respectively. The company reported a net
Strong top-line performance                                                     profit margin of 19.44% in 2010.


Opportunities                            Threats                                Return on Equity

                                         Adverse economic situation and
Development of Lower Churchill project
                                         weather conditions
Expanding wind energy projects in the
                                      Legal and political framework
US:
                                         US energy policy and increasing tax
Rising demand for electricity
                                         burden




                                                                                Liquidity Position

                                                                                The company reported a current ratio of 1.12 in 2010,
                                                                                as compared to its peers, Maxim Power Corp.,
                                                                                TransAlta      Corporation     and    Capital   Power
                                                                                Corporation, which recorded current ratios of 0.98,
                                                                                0.82 and 0.82 respectively. As of December 2010, the
                                                                                company recorded cash and short-term investments
                                                                                of worth US$7.09 million, against US$10.29 million
                                                                                current debt. The company reported a debt to equity
                                                                                ratio of 2.33 in 2010 as compared to its peers, Maxim
                                                                                Power Corp., TransAlta Corporation and Capital
                                                                                Power Corporation, which recorded debt to equity
                                                                                ratios of 0.37, 1.30 and 2.24 respectively.




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Emera Inc. - SWOT Profile                                                                                              Page 1
Emera Inc.

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................7
2     Analysis of Key Performance Indicators ............................................................................................... 8
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................8
    2.2       Key Financial Performance Indicators .................................................................................................................11
      2.2.1       Revenue and Operating Profit .........................................................................................................................11
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................12
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................13
      2.2.4       Operational Efficiency ......................................................................................................................................14
      2.2.5       Solvency ..........................................................................................................................................................15
      2.2.6       Valuation ..........................................................................................................................................................16
    2.3       Competitive Benchmarking ..................................................................................................................................17
      2.3.1       Market Capitalization .......................................................................................................................................18
      2.3.2       Efficiency ..........................................................................................................................................................19
      2.3.3       Capital Expenditure ..........................................................................................................................................20
      2.3.4       Valuation ..........................................................................................................................................................21
      2.3.5       Turnover – Inventory and Asset .......................................................................................................................22
    
								
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