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Supply Portfolio Management
Supply portfolio management gross profits were $6.5 million in the fourth quarter and consistent with the prior year quarter as market conditions remained favourable.
Fixed-Price Energy Services
Fixed-Price Energy Services Gross Profit
---------------------------------------------------------------------------- Three months ended Three months ended December 31, 2012 December 31, 2011(millions of dollars except volume and per Gross Gross unit amounts) Profit Volume Per Unit Profit Volume Per Unit---------------------------------------------------------------------------- 83.0 170.0 Natural gas (1) 3.9 4.7 GJ cents/GJ 8.5 5.0 GJ cents/GJ 1.20 1.08 Electricity (2) 2.4 199.9 KWh cents/KWh 1.8 166.6 KWh cents/KWh---------------------------------------------------------------------------- Total 6.3 10.3------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Twelve months ended Twelve months ended December 31, 2012 December 31, 2011(millions of dollars except volume and per Gross Gross unit amounts) Profit Volume Per Unit Profit Volume Per Unit---------------------------------------------------------------------------- 115.0 146.9 Natural gas (1) 21.5 18.7 GJ cents/GJ 31.0 21.1 GJ cents/GJ 1.13 1.01 Electricity (2) 9.2 816.7 KWh cents/KWh 6.1 606.3 KWh cents/KWh---------------------------------------------------------------------------- Total 30.7 37.1--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Natural gas volumes are expressed in thousands of gigajoules (GJ).(2) Electricity volumes are expressed in thousands of kilowatt hours (KWh).
Fixed-price energy services gross profit was $6.3 million in the fourth quarter, a decrease of $4.0 million or 39% from $10.3 million in the prior year quarter. Natural gas gross profit was $3.9 million, a decrease of $4.6 million from the prior year quarter due to lower gross margins and sales volumes. Gross profit per unit was 83.0 cents per gigajoule (GJ), a decrease of 87.0 cents per GJ or 51% from the prior year quarter. The decrease in natural gas gross margin was due to sales mix as the existing customer base contains a lower proportion of higher margin residential customers and overall decline in residential customers. Sales volumes of natural gas were 4.7 million GJ, 0.3 million GJ or 6% lower than the prior year quarter due to a continued decline in residential volumes and lower customer aggregation as a result of continued historically low system price for natural gas. Electricity gross profit in the fourth quarter of 2012 was $2.4 million, an increase of $0.6 million or 33% from the prior year quarter due to the aggregation of additional commercial customers in the Ontario market, full year contribution from prior year customer additions and additional residential customers in Pennsylvania.
