Atco Q4 profits rise, hit full-year record earnings of $327 million

CALGARY - Energy services company Atco Ltd. (TSX:ACO.X) reported Wednesday a fourth-quarter profit of $102 million, up from a year-earlier $72 million, while full-year 2011 earnings hit a record $327 million.

The profit improvement came from increased activity across most of its businesses, the Calgary-based company said.

Atco's quarterly profit amounted to $1.76 per share, up from a year-earlier $1.25 per share. Stripping out one-time items, Atco earned $83 million, up from $80 million. Revenues for the period rose to $1.13 billion from $955 million.

For the full year, Atco's profit amounted to $5.65 per share, up from $281 million or $4.83 per share in 2010. Adjusted for one-time items, earnings came in at $330 million, up from $296 million. Revenue grew to $4 billion from $3.49 billion.

Separately, Canadian Utilities Limited (TSX:CU), Atco's pipeline and energy services unit, reported earnings attributable to equity owners of $156 million or $1.14 per share, up from $118 million or 88 cents per share.

However, adjusted earnings decreased $14 million to $109 million in the quarter as the ATCO Gas general rate application decision that disallowed certain program costs and capital expenditures, and the generic cost of capital decision, reduced the utilities' approved return on equity.

Revenue in the quarter was $827 million, up from $723 million.

For the full year, earnings attributable to shareholders were $496 million or $3.65 per share on revenues of just under $3 billion, up from $432 million or $3.21 per share on revenues of $2.7 billion.

Atco, with more than 8,000 employees and assets of about $12 billion, operates pipelines, natural gas and electricity distribution companies as well as power generation and natural gas processing and storage businesses. It also makes and sells oilfield housing and other services.

"In 2011, Atco Structures & Logistics had an exceptionally strong year as rental activity increased and manufacturing expanded to address growth in demand for modular structures and services, especially new workforce housing needs in the resource-rich regions of Australia, Canada, and South America," the company said in a statement.

"Australia was particularly strong with three major workforce housing complexes associated with liquefied natural gas projects."

Note to readers: This is a corrected story; An earlier version incorrectly stated Canadian Utilities' earnings attributable to equity owners per share.