Earnings News

Updated April 6, 2007.

Editor’s Note: Earnings News should be read in conjunction with the How They Rate article. For more numbers and current trading advice, see the How They Rate Table.

Oil & Gas

Advantage Energy Income Fund (AVN.UN, NYSE: AAV) reported net income for the fourth quarter declined 66 percent to CD8.7 million (8 cents Canadian per unit) from CD25.9 million (45 cents Canadian per unit) a year ago. Revenue for the period was up 16 percent to CD127.5 million from CD110.2 million. Net income for 2006 was CD49.8 million (62 cents Canadian per unit), down from CD75.1 million (CD1.33 per unit) in 2005.

Annual revenue increased 11 percent to CD419.7 million from CD376.6 million. But revenue per barrel of oil equivalent (BOE) was down 7 percent to CD47.80, and revenue per unit declined 22 percent to CD5.18. Production for the year was up 18 percent to an average of 23,754 BOE per day, with natural gas constituting two-thirds of it. Advantage ended the year with proved and probable reserves of 121.3 million BOE, up from 84.1 million at the end of 2005, for a reserve life of 11.4 years.

Bank debt was CD410.6 million, up from CD252.5 million, and there were CD180.7 million in convertible debentures outstanding, up from CD135.1 million. Advantage said its hedging program has secured almost half its gas production at an average floor price of CD7.55 per thousand cubic feet. Responding to the Canadian government’s move to tax income trusts like corporations, Advantage said that, as a taxable corporation, it will have a tax pool of CD1.2 billion to shelter future profits, and guidelines on trust taxation allow it to issue up to CD1.6 billion of new equity between now and 2011.

Advantage’s capital expenditure budget for 2007 is CD120 million to CD145 million.

ARC Energy Trust (AET.UN, AETUF) reported a 56.6 percent drop in fourth quarter profits–from CD130.5 million in 2005 to CD56.6 million–on a 19.9 percent fall in revenue. Revenue was down to CD292.5 million from CD363.5 million a year ago. For 2006, ARC generated revenue of CD1.23 billion and a profit of CD460.1 million, up 28.9 percent from CD356.9 million in 2005. The company spent CD365 million on exploration and development, adding 16 million barrels of oil equivalent (boe) and replacing 71 percent of 2006 production.

Production guidance for 2007 will be 63,000 barrels of oil per day. In accordance with the requirements of Canada’s National Instrument 51-101, ARC reported a proved reserve life index (RLI) of 9.8 years based on 2007 production guidance of 63,000 boe per day. The trust replaced 96 percent of annual production at a finding, development and acquisition (FD&A) cost of CD22.41 per boe. Reserves per trust unit decreased slightly from 2005 to 2006 from 1.42 to 1.38 boe per unit on a proved plus probable basis and from 1.13 to 1.09 boe per unit on a proved basis. ARC’s 2006 year-end reserves are within 1 percent of year-end 2005 levels with proved reserves of 226 million boe and proved plus probable reserves of 286 million boe.

Canadian Oil Sands Trust’s (COS.UN, COSWF) profits fell to CD128 million in the fourth quarter from CD174 million in the year-earlier period on higher royalties, higher operating expenses and higher foreign exchange losses, while production fell short of expectations because of equipment problems. The trust, the largest partner in the Syncrude oil sands consortium, reported net income of 27 cents Canadian per unit in the fourth quarter of 2006, down from 38 cents Canadian per unit in the fourth quarter of 2005.

Syncrude production during the fourth quarter of 2006 totaled 27.8 million barrels (approximately 302,700 barrels per day) compared to 20.8 million barrels (approximately 226,000 barrels per day) in the fourth quarter of 2005. The net realized selling price fell to CD63.71 per barrel in the fourth quarter, down from CD72.07 in the year-earlier period. The trust‘s operating costs in the fourth quarter of 2006 declined to CD23.60 per barrel from CD25.54 on lower natural gas prices required for oil sands processing. That was offset by an increase in the value of Syncrude‘s employee compensation.

The higher production output was due to the completion of the Stage 3 expansion earlier in the year, offset primarily by an equipment outage in the fourth quarter of 2006. Cash from operating activities during the fourth quarter increased to CD412 million, or 88 cents Canadian per unit, in the fourth quarter of 2006 up from CD281 million or 61 cents Canadian per unit for the fourth quarter of 2005. For the full year ended December 31, the trust‘s net income was CD834 million, or CD1.78 per diluted unit. That compares with 2005 net income of CD831 million, or CD1.80 per unit diluted.

Cash from operating for 2006 was CD1.14 billion, up from CD949 million or CD2.07 per unit. Included in Canadian Oil Sands Trust‘s guidance for 2007 is a Syncrude production estimate in a range of 105 million to 120 million barrels this year, or 39 million to 44 million barrels net to the trust. Operating costs are estimated to be CD25.83 per barrel with purchased energy costs accounting for CD7.08 per barrel of this amount.

Canetic Resources (CNE.UN, NYSE: CNE) generated funds from operations (FFO) of CD750.1 million (CD3.64 per basic unit) for 2006 compared to CD360.5 million (CD4.04 per basic unit) in 2005, an increase driven by acquisitions. Fourth quarter FFO totaled CD170.1 million (76 cents Canadian per unit), an increase of 60 percent from CD106.5 million (CD1.16 per unit) realized in the same period last year. Net earnings increased 239 percent to CD223.1 million in 2006 compared to CD65.8 million in 2005.

On a per unit basis net earnings increased 46 percent to CD1.08 per basic unit compared from 74 cents Canadian in 2005. Canetic distributed CD2.76 per unit (23 cents Canadian per unit per month) in 2006 compared with CD2.34 per unit (19.5 cents Canadian per unit per month) in 2005. Canetic boosted its annual production average 84 percent to approximately 74,409 barrels of oil equivalent (BOE) per day for 2006.

Production in the fourth quarter totaled 80,276 BOE per day compared to 74,475 BOE per day in the third quarter of 2006. Canetic replaced 237 percent of 2006 production on a proved plus probable basis at a finding, development and acquisition (FD&A) cost of CD23.30 per BOE including future development capital. The trust spent less than 50 percent of FFO to replace 76 percent of 2006 production via its internal development program, at a cost of CD19.21 per BOE.

Proved plus probable reserves increased 16 percent to 275.6 million BOE from 238.4 million BOE. Proved reserves increased 12 percent to 192.2 million BOE. Canetic’s Reserve Life Index (RLI) increased 1.0 year to 9.7 years on a proved plus probable basis and 0.5 years to 6.8 years on a total proved basis.

Crescent Point Energy Trust (CPG.UN, CPGCF) reported a 79 percent drop in fourth quarter net income to CD6.91 million from CD33.45 million during the same period in 2005 as falling natural gas prices offset company-record average daily production. Earnings for the quarter ended December 31 fell to 10 cents Canadian per unit from 87 cents Canadian. Revenue hit CD100.96 million, up from CD75.9 million as production reached 21,369 BOE per day.

Crescent Point completed 12 acquisitions that paved the way for the production gains in 2006. For the full year, net income rose to CD68.9 million from CD38.5 million on revenue of CD427.5 million, up from CD251.1 million. Crescent Point’s 2006 FD&A, including true development costs, came in at CD16.36 per proved BOE of reserves. The five-year rolling average for FD&A is CD12.40 per BOE.

Crescent Point replaced 147 percent of 2006 production, not including reserves added through acquisitions. Including acquisitions, the trust increased its year-end reserve base by 94 percent on a proved basis. Year-end 2006 reserves are 64 million BOE proved and 90.3 million BOE proved plus probable, up from 32.9 million BOE proved and 47.9 million BOE proved plus probable at the end of 2005. Crescent Point’s proved plus probable RLI ticked up to 11.9 years from 11.1 years.

Enerplus Resources (ERF.UN, NYSE: ERF) experienced an 11 percent boost in cash flow for 2006, from CD774.6 million to CD863.7 million. Net income increased 26 percent to CD544.8 million, or 13 percent to CD4.48 per trust unit. Cash distributions increased in 2006 by 23 percent to CD614.3 million, or 11 percent per unit compared to 2005. Fourth quarter profits dipped to CD110.2 million from CD150.9 million for the same 2005 period as sales revenue fell on declining oil and gas prices.

Enerplus maintained a healthy 71 percent payout ratio. According to its required public disclosure, the trust sports one of the longest RLIs in the sector at 14 years on a proved plus probable basis; on a proved basis, RLI is 10.1 years. FD&A costs for 2006 stood at CD23.19 per boe on a proved plus probable basis and CD28.82 per boe on a proved basis. Operating costs averaged CD8.02 per boe. Enerplus’ net debt to trailing 12-month cash flow ratio of 0.8 times reflects management’s conservative style.

Enterra Energy Trust (ENT.UN, NYSE: ENT) reported a fourth quarter loss of CD69.2 million (CD1.40 per unit), attributing the bleeding to write-downs on the value of reserves because of falling natural gas prices and higher interest expenses. Enterra reported a CD12.9 million (37 cents Canadian per unit) loss for the fourth quarter of 2005.

Depletion and depreciation costs totaled CD44.5 million for the period ended Dec. 31, 2006. The trust’s average production for 2006 increased by 60 percent to 12,352 BOE per day on the August 2005 High Point Resources acquisition and the early 2006 purchase of assets in Oklahoma, producing 5,700 BOE per day.

For 2006, Enterra lost CD64.2 million (CD1.46 per unit), swinging from a 2005 net income of CD970,000 (3 cents Canadian per unit). Revenue increased 55 percent to CD244.4 million from CD158.1 million. The Oklahoma assets pushed sales volumes, but Enterra’s average realized price for natural gas declined 10 percent. The trust is now weighted 60 percent to natural gas, a huge turnaround from the 70 percent oil bias for 2005.

Expenses ballooned 97 percent to CD20.4 million–CD4.52 per BOE–because of “the expanded size of the trust and the associated increase in the number of staff to manage and administer its assets and operations.”

Focus Energy Trust’s (FET.UN, FETUF) midsummer acquisition of Profico Energy Management drove annual and fourth quarter average daily production gains, and the trust managed to keep FFO basically flat despite a 25 percent decrease in average natural gas prices. Production averaged 15,899 BOE per day in 2006, 88 percent natural gas. For 2006, natural gas price protections boosted revenue by approximately CD38.6 million and increased the realized price for natural gas by CD1.31 per thousand cubic feet (MCF).

Focus has price-protected about 60 percent of 2007 gas production at CD8.26 per MCF. As of Dec. 31, 2006, Focus had proved plus probable reserves of 83.7 million BOE, an increase of 108 percent from the 40.3 million BOE at the end of 2005. Focus reported 2006 proved plus probable FD&A costs of CD28.77 per BOE, including future development capital, and an RLI of 9.9 years.

Freehold Royalty Trust’s (FRU.UN, FRHLF) fourth quarter and full-year 2006 results more than justified its sell rating. The trust suffered a 5 percent reduction in barrels of oil equivalent (BOE) produced per day, and the average price for the product Freehold did get to market fell 25 percent. Operating netback and funds from operations (FFO) fell at similar rates during the quarter, all of which explain why the dividend is under pressure. The big picture isn’t much brighter: Probed plus probable reserves declined 8 percent to 28 million BOE; reserve additions of 1.5 million BOE made up for just 49 percent of annual production. Freehold’s reserve life index (RLI) is 9.6 years.

Harvest Energy Trust (HTE.UN, NYSE: HTE) reported 2006 revenue of CD1.4 billion, up from CD436.5 million in 2005, but its fourth quarter profit dropped to CD1.5 million from CD75.6 million a year ago. Revenues climbed to CD686.5 million from CD169.9 million in the fourth quarter of 2005 as production climbed 63 percent to 63,436 barrels of oil equivalent (BOE) per day. Declared distributions jumped to CD135 million from CD44.5 million, the payout ratio rose to 86 percent from 57 percent, and bank debt jumped to CD1.6 billion from CD13.9 million. Harvest reported a 30 percent year-over-year jump in profit to CD136 million from CD104.9 million in 2005.

Harvest’s annual reserve report revealed an 82 percent increase in total proved reserves and an 84 percent increase in proved plus probable reserves to 159.2 million barrels of oil equivalent (MMBOE). Internal efforts generated approximately 18.9 MMBOE of proved plus probable reserves, replacing approximately 87 percent of 2006 production. Development and exploration capital investments totaled CD363.5 million and added a net 15 MMBOE, resulting in finding and development costs including future development capital (FDC) of CD26.04 per BOE. Finding, development and acquisition (FD&A) costs including FDC were CD24.59 per BOE. Three-year average proved plus probable F&D costs were CD14.43 including FDC; three-year average proved plus probable FD&A came in at CD17.08 including FDC. Harvest’s reserve life index on a proved plus probable basis is 9.3 years.

NAL Oil & Gas Trust’s (NAE.UN, NOIGF) fourth quarter numbers suffered under the weight of lower natural gas prices and restructuring charges. Net earnings for 2006 fell 39 percent from CD98.5 million to CD60.2 million. NAL pointed to a 23 percent drop in natural gas prices and a CD27.2 million one-time charge to explain a 33 percent drop in fourth quarter profits, from CD30.8 million a year ago to CD20.5 million. Gross revenue was CD75.7 million in the fourth quarter, down from CD95.6 million the year before, and 2006 revenue was CD310.8 million, down from CD314 million in 2005.

Paramount Energy Trust’s (PMT.UN, PMGYF) boosted production overall for 2006, but hedging only somewhat offset weak natural gas prices. Average daily production increased 5 percent to 153.4 million cubic feet (MMCF) per day 2006, but the trust recorded a 9 percent drop in cash flow to CD236.7 million (CD2.82 per unit) from CD260.2 million (CD3.47 per unit) for 2005.

Paramount realized an average gas price of CD7.52 per MCF 2006, down 6 percent from CD7.97. The trust’s average price before financial hedging and physical forward sales decreased 24 percent to CD6.61 per MCF in 2006 from CD8.71 in 2005, in line with the decrease in spot prices for the year. Paramount realized CD51 million of additional revenue and cash flow in 2006 from hedging activities. The trust’s total net debt to annualized fourth quarter cash flow measured 1.7 times as of Dec. 31, 2006.

Fourth quarter cash flow, down to CD58.2 million (69 cents Canadian per unit) from CD78.2 million (96 cents Canadian per unit), was crimped as cold weather forced downtime at several facilities.

Pengrowth Energy Trust’s (PGF.UN, NYSE: PGH) profit shrank to CD3.3 million in the fourth quarter, down from CD116.7 million in the fourth quarter of 2005, on rising costs and falling energy prices. For the quarter ended December 31, net income per unit dropped to 1 cent Canadian from 73 cents Canadian. Oil and gas sales amounted to CD350.9 million, down from CD353.9 million the same quarter a year earlier. Pengrowth reported a full-year 2006 profit of CD262.3 million, down from CD326.3 million in 2005, on CD1.21 billion in sales. Pengrowth sold more volume in 2006 but at lower prices. 2007 production is forecast to be 83,000 to 87,500 BOE per day, with expenses expected to reach CD13 per BOE.

Penn West Energy Trust’s (PWT.UN, NYSE: PWE) midsummer 2006 acquisition of Petrofund led to a 4 percent boost in fourth quarter revenue to CD578.5 million, but earnings fell by 49 percent on lower natural gas prices and higher depletion charges. Net income was CD122.9 million, down from CD241.1 million. On a per-unit basis, net income was down 70 percent from CD1.46 to 44 cents Canadian. Full-year net income was CD665.6 million, or CD3.27 per unit, down 15 percent from CD577.2 million, or CD3.48 per unit, in 2005. Revenue was up 9 percent to CD2.1 billion from CD1.92 billion.

Production averaged 129,915 BOE per day in the fourth quarter, up from 98,205 BOE per day a year earlier; 45 percent of fourth quarter 2006 production was natural gas. Penn West spent CD159 million on capital programs, drilling 52 net wells in the fourth quarter with a 96 percent success rate. The distribution looks safe through the balance of 2007.

Peyto Energy Trust (PEY.UN, PEYUF) reported fourth quarter revenue of CD110.7 million, off 13 percent from the CD127.6 million it generated in the same period in 2005. FFO for the last months of what was a tough 2006 declined 11 percent from CD86.6 million to CD77.4 million.

Peyto distributed 42 cents Canadian per unit in the fourth quarter for a payout ratio of 57 percent, up from 42 percent a year ago. For the full year, Peyto generated revenue of CD439 million, down 2 percent from CD431.7 in 2005. FFO came in at CD305.8 million, up 3 percent from 2005. The trust distributed CD1.66 per unit for a full-year payout ratio of 52 percent.

Operationally, Peyto boosted its RLI to 12 years on a proved producing basis and 20 years on a proved plus probable basis. Annual production grew 3 percent from 22, 219 boe per day in 2005 to 22,873 boe per day in 2006. The trust held combined operating and administrative costs to CD2.64 per boe. Peyto paid average FD&A costs of CD19.66 per boe on a total proved basis. The trust replaced 194 percent of total proved reserves during 2006.

In its discussion of fourth quarter and 2006 results, Peyto management renewed its commitment to delivering part of its income from production to investors, regardless of its organizational structure. The trust is focused on its internal exploration and development efforts, eschewing acquisitions as a means of growth. Maintaining relatively low FD&A costs and controlling costs led to improved internal rates of return in 2006; managed growth and sustainability continue to guide it.

PrimeWest Energy Trust (PWI.UN, NYSE: PWI) reported earnings per unit for the fourth quarter of CD1, down from CD1.56 in 2005 on lower natural gas prices. For the full year, net income rose to CD208.3 million from CD207.5 million. Revenues from commodity sales were CD690.2 million, down from CD792.6 million. PrimeWest remains tied to the course of natural gas prices in 2007; the company warned that, if prices continue to deteriorate this year, income will suffer.

Approximately 68 percent of PrimeWest’s production is natural gas. Distributions for 2006 amounted to CD3.75 per unit for a payout ratio of 84 percent; that figure is up substantially from 2005’s 68 percent. PrimeWest added 23.2 million boe of proved plus probable reserves at an average of CD11.22 per boe during 2006; the trust’s capital development program replaced 162 percent of 2006 production on a proved plus probable basis. PrimeWest’s RLI as of the end of 2006 was 13.4 years on a proved plus probable basis. Net debt to annualized 2006 funds flow from operations was approximately 2.3 times at Dec. 31, 2006, up from 0.8 times for 2005.

Provident Energy Trust’s (PVE.UN, NYSE: PVX) asset mix offset the impact of falling commodity prices as it turned in company-record cash flow from operations of CD433 million (CD2.20 per unit), up 39 percent from 2005. Revenue generated for the year totaled CD2.2 billion, an increase of 61 percent from CD1.4 billion in 2005. Distributions declared totaled CD283 million (CD1.44 per unit), compared to CD231 million (CD1.44 per unit) for the same period in 2005.

The payout ratio of cash flow from operations for 2006 was 66 percent compared to 74 percent for 2005. Provident’s fourth quarter cash flow from operations was CD123 million (58 cents Canadian per unit), up 27 percent from CD96 million (57 cents Canadian per unit) in the fourth quarter of 2005. Full-year net earnings came in at CD141 million, up from CD97 million in 2005. For the fourth quarter of 2006, Provident recorded a net loss of CD26 million, compared to net earnings of CD55 million in the fourth quarter of 2005.

The decline in fourth quarter net earnings is due primarily to a CD56 million change in unrealized loss on financial derivative instruments. Full-year midstream earnings of CD220 million reflected the successful integration of the 2005 acquisition of NGL. Upstream production averaged 31,700 BOE per day in 2006. Proved plus probable oil and gas reserves increased 14 percent to 153 million BOE, and Provident’s RLI increased for the fourth consecutive year, reaching 12.4 years. Provident replaced 185 percent of total production, increasing total proved reserves to 118 million BOE, through internal development and acquisition activity. FD&A costs, including revisions and future development capital, were CD22.04 per BOE of proved plus probable reserves, or USD13.26 over a three-year average.

Shiningbank Energy Income Fund (SHN.UN, SBKEF) reported that net earnings fell 96 percent to CD1.99 million in the fourth quarter; production volumes were up 10 percent, but realized prices were down and expenses increased. Shiningbank generated net earnings of CD50 million during the fourth quarter of 2005–during a period of record-high oil and gas prices. Total revenue in the 2006 fourth quarter fell to CD107.7 million, down from CD144.5 million. Natural gas accounted for CD74.2 million, or 69 percent, of revenues in the fourth quarter, down from CD118 million, or 82 percent of total revenues, in the fourth quarter of 2005. Distributions to unitholders fell to CD52.4 million, down 15 percent from CD61.4 million a year ago. On a per-unit basis, distributions dropped 32 percent to 61 cents Canadian from 90 cents Canadian.

For 2006, Shiningbank earned CD65.8 million in 2006, down 42 percent from CD114.2 million in 2005. Revenues fell 5 percent to CD400.8 million. It’s been down so long that it’s hard to see the upside.

Sound Energy Trust (SND.UN, SNDFF) reported fourth quarter net income of CD3.4 million (6 cents Canadian per unit), down from CD7.3 million (26 cents Canadian per unit) a year ago. Sound generated funds flow from operations (FFO) of CD19.0 million (33 cents Canadian per unit), down from CD21.3 million (75 cents Canadian per unit) in 2005. Production revenue before hedging decreased 3 percent to CD44.8 million from CD45.9 million last year. For 2006, the trust reported net income of CD6.5 million (17 cents Canadian per unit), down sharply from CD18.2 million (65 cents Canadian per unit) for 2005. FFO declined to CD64 million (CD1.62 per unit) from CD72.8 million (CD2.59) in 2005. Full-year production revenue before hedging was down 2 percent to CD157 million from CD161 million because of lower commodity prices in 2006.

Thunder Energy Trust (THY.UN, THYFF) reported a fourth quarter 2006 loss, cut production guidance for 2007 and put itself up for sale as losses widened on falling output during the three months ended Dec. 31, 2006. Thunder cut its distribution by 25 percent in February on lower oil and gas prices and the impact of the Canadian government’s decision to tax trusts at the entity level beginning in 2011.

Thunder lost CD130.2 million, or CD2.61 per unit, in the fourth quarter, significantly worse than its loss of FFO, the money used for the monthly payout to investors, fell 53 percent from a year ago to CD18.5 million, or 35 cents Canadian a unit. Thunder said in a statement that due to “current market circumstances,” it would begin looking at “strategic alternatives available to maximize shareholder value” and has hired investment bankers to look for potential merger targets or a buyer or to examine restructuring options. A downward revision in the trust’s reserves resulted in a write-down of CD102 million on its property and plant assets, compared with a write-down of CD56.2 million a year earlier.

Year-end reserve revisions resulted in an additional write-down of CD58.6 million in goodwill related to the formation of the trust in July 2005. Thunder cut its 2007 production guidance to 8,600 to 9,000 BOE per day, down from 9,452 BOE per day averaged in 2006.

True Energy Trust (TUI.UN, TUIJF) reported a 2006 net loss of CD233.6 million on noncash charges it took in the fourth quarter to reflect the decreased value of some of its plant, equipment and acquired businesses as a result of planned changes to federal income tax policy for trusts. The annual loss amounted to CD4.95 per diluted trust unit and compared with a net profit of CD13.9 million, or 55 cents Canadian per unit, in 2005.

True’s revenue was CD220.9 million, up from CD161.7 million in 2005. Cash flow from operations rose to CD90.4 million from CD87.1 million in 2005. Revenue in the fourth quarter of 2006 was CD77.25 million, up from CD61 million in the fourth quarter of 2005.

Vault Energy Trust (VNG.UN, VNGFF) lost CD3.3 million in the fourth quarter as production costs jumped 35 percent and oil and gas revenue fell. The trust, which reported net income of CD4.6 million in the fourth quarter of 2005, also saw revenues slip from CD47.8 million to CD34.2 million. Production reported for the fourth quarter was higher than expected at 7,718 BOE per day. FFO was off 60 percent at CD10.7 million, down from CD26.8 million a year ago, as lower oil and gas prices and higher production costs took their toll. For the year, Vault posted FFO of CD50.84 million (CD1.26 per unit), down from CD52.5 million (CD2.16 per unit) in 2005. The net loss for the period was CD15.81 million (46 cents Canadian per unit), compared to net income of CD10.5 million (43 cents Canadian per unit). Revenue was up to CD138.8 million from CD121.12 million.

Vermilion Energy Trust (VET.UN, VETMF) generated FFO of CD89.6 million (CD1.27 per unit) in the fourth quarter of 2006, bringing full-year 2006 FFO to USD342.5 million (CD4.86 per unit) compared to USD278.2 million (CD4.08 per unit) in 2005. Average daily production for 2006 of 27,401 BOE represented a 9 percent increase over 2005 levels. Production in the fourth quarter was up to 29,452 BOE per day compared to 28,411 in the third quarter.

Vermilion completed work on processing facilities, gathering systems and pipeline connections for coal-bed methane and shallow gas in central Alberta that will add approximately 800 BOE per day of natural gas during the first quarter of 2007. Vermilion acquired approximately 3,900 BOE per day of light, sweet oil production in France, where Vermilion is the largest oil producer. The trust also moved forward with plans to drill the Aquitaine Maritime prospect offshore France and should drill in the third quarter of 2007.

Vermilion replaced more than 200 percent of 2006 production through drilling and acquisitions. It expanded capacity at existing facilities, a wise bit of spending that helped in 2006 and will accommodate forward growth. Vermilion’s net debt at year-end 2006 was approximately CD355 million, resulting in a debt to trailing cash flow of approximately one times. The trust’s proved plus probable RLI at the end of 2006 increased to 11.5 from 11.4 years at the end of 2005.

Electric Power

Algonquin Power Income Fund (APF.UN, AGQNF) reported a 9.6 percent jump in operating profits for last year to CD31 million on revenues up nearly 5 percent to almost CD46 million. Costs declined slightly to CD16.7 million compared to the previous year. Total power sold increased 11.5 percent to 678,505 megawatt hours (MWh) with Algonquin’s main region, Quebec, seeing a 14.3 percent rise to 305,656 MWh. New York and Ontario saw 32.1 percent and 21.1 percent rises in power sold, respectively.

For 2006, revenue grew 12.3 percent to CD201.4 million from CD179.3 million in 2005. Fourth quarter revenue was up to CD53.7 million from CD50.9 million in the fourth quarter of 2005. Net earnings in 2006 were CD28 million (39 cents Canadian per unit), up from CD21.8 million (31 cents Canadian per unit) in 2005.

Cash available for distribution in 2006 increased to CD67.5 million (93 cents Canadian per unit) compared to CD64.9 million (93 cents Canadian per unit) in 2005. Cash distributions in 2006 totaled 92 cents Canadian per unit, unchanged from 2005.

Atlantic Power Corp (ATP.UN, ATPWF) reported operating income of CD14.6 million and net income of CD2.9 million for the fourth quarter of 2006. For the full year, the company generated revenue of CD242.9 million and operating income of CD57.2 million in 2006; the net loss for the year CD2.4 million, or 5 cents Canadian per income participating security (IPS).

Earnings before interest, taxes, depreciation and amortization (EBITDA) at Atlantic’s operating units increased 25 percent in the fourth quarter, driven by acquisitions completed late in 2005 and in mid-2006. For 2006, EBITDA was up 17 percent from 2005 levels. Atlantic generated CD11.6 million (25 cents Canadian per IPS) in distributable cash during the fourth quarter, down from CD20.6 million (54 cents Canadian per IPS) for the same period last year.

Distributions declared in the quarter were CD12.9 million (27 cents Canadian per IPS) for a payout ratio of 111 percent, up from 47 percent in the fourth quarter of 2005. The lower payout ratio in the fourth quarter of 2005 was due to the one-time add-back of a CD5.5 million estimated tax payable on an asset disposal.

The higher payout ratio in fourth quarter 2006 was due to a number of factors, including a decrease in distributions received from equity investments, revisions of income tax estimates for the full year of 2006 that were recorded in the fourth quarter, an increase in interest expense and lower realized gains on foreign currency transactions. Distributable cash for 2006 amounted to CD57.9 million (CD1.45 per IPS) compared to CD48.7 million (CD1.53 per IPS) for 2005. Distributions declared for 2006 were CD43.4 million (CD1.04 per IPS) for a 75 percent payout ratio, up from 67 percent for 2005.

The higher payout ratio is a result of higher declared distributions per IPS and an increase in the number of IPSes outstanding over last year.

Boralex Power Income Fund (BPT.UN, BLXJF) reported best-ever net income of CD34 million, up 40 percent from CD24.3 million in 2005. Revenue from energy sales rose to CD115.2 million, compared to CD107.9 million a year earlier. Annual power generation by Boralex’s seven hydroelectric facilities was 22.3 percent above the historical average, driving a 12.7 percent rise in revenue from that segment.

The fund generated distributable cash of CD57 million and distributed CD53.2 million, for a payout ratio of 93 percent. Fourth quarter revenue slipped to CD30 million from CD30.4 million, and net earnings declined to CD7.4 million, or 12 cents per unit, from CD8.8 million, or 15 cents Canadian per unit.

Great Lakes Hydro Income Fund (GLH.UN, GLHIF) said fourth quarter profits rose slightly to CD17.3 million from CD17 million a year ago, boosted by favorable water conditions in Quebec and New England that helped the hydroelectric power producer generate more electricity. The fund reported its income before noncash and special items amounted to 36 cents Canadian per share for the three months ended December 31, up from 35 cents Canadian a year ago. Sales rose to CD42 million from CD39.2 million, while fourth quarter power generation increased to 968 gigawatt hours from 880 gigawatt hours a year earlier. For the year, income rose to CD82.6 million (CD1.71 per unit) from CD69.5 million (CD1.44 per unit) a year ago. Sales rose to CD177.1 million from CD154.5 million.

Innergex Power Income Fund (IEF.UN, INRGF) reported a fourth quarter profit of CD1.5 million (6 cents Canadian per unit), down from CD3.6 million (15 cents Canadian per unit) in the year-earlier period, on flat revenue of CD8.8 million. Full-year profit, however, rose to CD11.9 million (48 cents Canadian per unit) from CD10 million (46 cents Canadian per unit) in 2005. For the year ended December 31, Innergex reported gross revenues of CD41.2 million, up from CD30 million in 2005.

Production for 2006 grew 49 percent to 641,525 megawatt hours (MWh) from 431,619 MWh mainly because of the acquisition of the Rutherford Creek generating facility in December 2005. For 2006, annual net distributable cash totaled CD26.1 million, up 27 percent from CD20.5 million in 2005. Innergex reported a payout ratio for year 2006 of 91 percent, down from 100 percent in 2005.

Northland Power Income Fund (NPI.UN, NPIFF) reported that total distributable cash increased 1 percent in the fourth quarter and 7 percent year-over-year. Total distributions paid to unitholders for the year amounted to CD1.08 per unit, an increase of 3 percent over 2005, and a payout ratio of 92 percent of distributable cash. Net income for the fourth quarter of 2006 was up 5 percent from a year ago.

Distributable cash generated in the fourth quarter 2006 exceeded distributions declared to unitholders by CD0.5 million. Distributions to unitholders declared for the quarter were CD0.2875 per unit, as in 2005. Revenue rose 29 percent over 2005, primarily because of acquisitions. Net income of CD10.2 million was lower than the previous year because of additional costs associated with the acquisitions, including contract amortization, and because 2005 results were affected by the one-time impact of the sale of the Panda-Rosemary facility and subsequent principal prepayment on the senior loan in February 2005. The fund’s 92 percent payout ratio provides it with flexibility for future investments and further increases in distributions.

Primary Energy Recycling (PRI.UN, PYGYF) generated 2006 revenue of USD87.1 million, incurred USD81.1 million in operating expenses and reported operating income of USD6 million for the year. Higher commodity volumes and prices at its Harbor Coal unit hurt overall performance. Primary Energy generated distributable cash of USD33.8 million declared total distributions of USD36.2 million (USD1.13 per unit), resulting in an effective payout ratio of 107.1 percent for 2006.

Gas/Propane

AltaGas Income Trust (ALA.UN, ATGFF) reported 2006 net income of CD114.5 million (CD2.06 per unit), a 27 percent increase from 2005. The trust earned CD27.3 million (49 cents Canadian per unit) during the fourth quarter, up from CD26.4 million (48 cents Canadian per unit) in the same 2005 period. AltaGas realized higher prices on lower transmission costs and benefited from higher natural gas liquids fractionation spreads, increased processing volume and lower debt-service costs, trends that generally describe 2006 for the company.

AltaGas boosted its distribution twice during 2006 for a total increase of 6.3 percent. Net income surpassed distribution growth, and the trust looks prepared to sustain its results. Total debt as of Dec. 31, 2006, was CD265.5 million, down from CD269 million as of the end of 2005. Total debt-to-capitalization was 33.4 percent, down from 36 percent.

CCS Income Trust (CCR.UN, CCRUF) boosted 2006 net income by 57 percent through acquisitions and by bringing new facilities on line. Annual income rose to CD124 million from CD79.16 million in 2005, although fourth quarter income dropped 12 percent to CD25.66 million because of reduced oil and natural gas drilling activity. Strong overall performances from the company’s four divisions offset some of the impact of the slowdown in the oil patch.

The trust’s operational exposure to the production side of the business insulates it somewhat, but reduced drilling activity would affect year-over-year growth in 2007. CCS will maintain its capital expenditures in the range of CD195 million to CD205 million over 2007, and the trust also announced it’s expanded into the US with a USD49.8 million acquisition of two service companies in Louisiana.

Energy Savings Income Fund (SIF.UN, ESIUF) missed customer growth targets in its third quarter, but it managed to boost sales by more than 25 percent. Sales rose to CD417.2 million from CD328.6 million during the same quarter a year ago, thanks to a larger customer base and higher selling prices. The fund also announced it will increase its distributions to unitholders, effective in March, 3 cents Canadian to CD1.065 per unit on an annualized basis, or to 8.875 cents Canadian per month.

However, the fund reported difficulty attracting new customers and reported lower-than-expected additions to its customer base. Part of the problem was due to difficulty in finding new and replacement sales agents in Canada. Management has reduced its customer aggregation target from 475,000 down to 350,000 for the fiscal year. Energy Savings is also reviewing restructuring options in light of Ottawa’s plan to tax income trust distributions.

Keyera Facilities (KEY.UN, KEYUF) generated a 12 percent boost in net income to CD68.1 million for 2006. Full-year distributable cash flow came in at CD99.7 million, CD1.65 per unit figure, down slightly from CD1.67 in 2005. Distributable cash for the fourth quarter was CD27.7 million (45.7 cents Canadian per unit), up 13 percent from the same 2005 period.

Keyera’s two facilities segments grew 9 percent during 2006, driven primarily by 35 percent growth in the natural gas liquids infrastructure business. Planned maintenance work depressed numbers from the gathering and processing segment but was off just 2 percent. Marketing proved a drag as tighter margins in the third and fourth quarters led to a 36 percent contraction from 2005’s record numbers. There will continue to be a great deal of drilling activity in the Western Canadian Sedimentary Basin in coming decades, and this trust is well positioned to take advantage.

Precision Drilling Trust (PD.UN, NYSE: PDS) reported sharply higher profits in the fourth quarter, but it saw its revenues fall 23 percent because of lower energy drilling. Precision said it earned CD127.4 million, or CD1.01 a trust unit, for the three months ended December 31. That compared with earnings of CD83.5 million, or 66 cents Canadian a unit, for the same 2005 period.

Revenue in the quarter was down 23 percent to CD328 million from CD427.9 million, with the contract drilling services division decreasing 28 percent to CD223 million and the completion and production services segment decreasing 13 percent to CD108 million. Equipment utilization declined significantly while pricing held firm. Drilling rig operating days fell by 18 percent over the third quarter 2006 and 33 percent from the fourth quarter of 2005. Demand for services was hurt by the persistent decline in natural gas and oil prices.

For the full year, the company’s profits fell to CD579.6 million from CD1.6 billion, while annual revenues rose to CD1.43 billion from CD1.27 billion. During 2006, the downward trend in commodity prices, natural gas in particular, led to lower fourth quarter demand for all of Precision’s services in western Canada. To close out the fourth quarter, 3,595 new well licenses were issued in western Canada in December, the second-highest monthly total in 2006.

For January 2007, Precision‘s drilling rig operating day utilization was 66 percent compared to 83 percent in January 2006. Despite the slowdown in oil patch activity, Precision will keep adding more rigs during the next two years. Western Canadian drilling activity is forecast to drop in 2007 for the first time in four years, falling about 15 percent to about 19,000 wells as producers weigh lower prices against higher costs to drill wells. Precision still plans to add 19 new drilling rigs–already contracted by oil and gas firms–for a total of 260 in Canada and the US by the end of 2008.

Spectra Energy Income Fund’s (SP.UN, SPFFF) reported results for Spectra Energy Facilities LP, of which the fund currently has a 53.8 percent indirect ownership. Revenue for the fourth quarter was CD33 million, up 49.5 percent from CD22.1 million for the same period last year, and annual operating revenue increased CD19.9 million from the previous year to CD101.8 million, both increases due mainly to the Westcoast Gas Services acquisition, higher average fees and a positive equalization adjustment. During the fourth quarter, the fund increased monthly cash distributions to 7 cents Canadian per unit and declared total distributions of CD5.1 million from distributable cash of CD5.9 million, for a payout ratio of 86 percent; the annual payout ratio for 2006 was 82 percent.

Average daily throughput in the fourth quarter was 594 MMCF per day compared to 420 MMCF per day for the same period last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the fourth quarter was CD14.3 million, an increase of approximately 41.7 percent from the fourth quarter last year. EBITDA for 2006 was CD47.9 million, up 33.9 percent from 2005. Net income for the fourth quarter of 2006 was CD4.2 million, up CD3 million from the same period a year earlier. Net income for 2006 was CD18 million, up CD15 million from 2005.

Superior Plus Income Fund (SPF.UN, SPIJF) reported net profit for the fourth quarter rose to CD38.1 million (45 cents Canadian per unit), up from CD21.2 million (25 cents Canadian per unit) a year earlier. Revenues rose to CD703 million from CD697 million. The increase in net earnings is principally due to reduced amortization after Superior Plus took accelerated charges in the 2005 fourth quarter because of the decision by its Erco unit to close its Thunder Bay, Ontario, sodium chlorate mill last spring.

Superior Plus undertook a strategic review last spring after record warm weather hurt Superior Propane‘s business during last year’s winter heating season. As a result, the fund sold its JW Aluminum unit, a maker of specialty, flat-rolled aluminum products in the US, for USD310 million; shut down its mill in Bruderheim, Alberta, a few months after closing the Thunder Bay mill in April; and completed its 55,000 ton Erco mill in Chile and began production in September to exclusively supply a Chilean pulp and paper company.

Trinidad Energy Services Income Trust (TDG.UN, TDGNF) posted a sharp increase in fourth quarter profit on acquisition-driven revenue increases. Trinidad earned CD31.3 million (37 cents Canadian per unit) during the fourth quarter, up from CD19.4 million (29 cents Canadian per unit) for the same 2005 period. Additions to Trinidad’s drilling fleet in Canada and the US lifted revenue to CD161.9 million from CD106.4 million. For 2006, Trinidad reported a CD123.7 million profit, up from CD47.4 million, and CD579.9 million in revenue, up from CD288.3 million.

Wellco Energy Services Trust (WLL.UN, WLLUF) expanded its operations into the Fort McMurray, Alberta, area during the fourth quarter of 2006 and the first quarter of 2007, its first foray into the engine of Canadian economic growth. Wellco generated record revenues in 2006 of CD110.7 million, an increase of 31 percent from 2005. Net earnings for the 12 months ended Dec. 31, 2006, were CD8.6 million (49 cents Canadian per unit) diluted, a decrease of 40 percent due to an impairment of goodwill writedown. Net earnings before the writedown were CD17.2 million (98 cents Canadian per unit).

Operational success was driven by four acquisitions completed during the year. For fiscal 2006, CD77.1 million, or 70 percent of Wellco’s total revenue, was derived from drilling services, compared to CD63.1 million, or 75 percent, for 2005. The production services segment contributed CD33.6 million in revenue, or 30 percent, of total revenue for fiscal 2006, up from CD21.3 million and 25 percent in 2005.

Pipeline Trusts

Enbridge Income Fund (ENF.UN, EBGUF) reported earnings of CD35.3 million, or CD1.02 per unit, for the year ended Dec. 31, 2006, compared with CD15.2 million, or CD0.44 per unit, in the prior year. The earnings increase was due primarily to future tax recoveries in Alliance Canada and the Saskatchewan System, resulting from a reduction in future tax rates substantively enacted during the year. Growth in the Saskatchewan System’s operations and fourth quarter wind power asset acquisitions also boosted earnings. Higher corporate costs took a small bite out of the increase.

Fourth quarter 2006 earnings of CD3.2 million are comparable with earnings of CD2.5 million in the prior year fourth quarter and include the addition of wind power assets acquired on Oct. 1, 2006. Financing costs associated with the acquisition partially offset the earnings contribution from these assets. Based on current operations, Enbridge estimates that approximately 80 percent of cash to be distributed in 2007 will be included in the income of unitholders for tax purposes. The remaining 20 percent will be nontaxable return of capital. During 2006, approximately 80 percent of cash distributed was included in the income of unitholders for tax purposes.

Pembina Pipeline Income Fund (PIF.UN, PMBIF) reported that fourth quarter revenue was up 13.4 percent from a year earlier at CD88.1 million and net operating profits rose 13 percent to CD55.6 million. Pembina said the year’s net operating was CD216.8 million. Pembina, which has a network of conventional feeder pipelines and a growing presence in oil sands infrastructure and in midstream terminal, storage and hub services, said fourth quarter volume averaged 846,800 barrels per day. Capital spending was CD66.7 million, up from CD27 million in the year-ago quarter, and was up 112.5 percent for the full year at CD168.9 million.

Business Trusts

Arctic Glacier Income Fund (AG.UN, AGUNF) posted a deeper fourth quarter loss but reported record revenue on the back of a number of acquisitions. The ice maker lost CD6.2 million (19 cents Canadian per unit) for the three months ended December 31, compared with a loss of CD1.8 million (6 cents Canadian per unit) a year ago. Acquisitions made in 2006 and late 2005 boosted sales 83 percent to CD39.9 million from CD21.8 million, but Arctic Glacier’s cost of sales also rose, climbing to CD39.2 million from CD22.3 million in the fourth quarter of 2005.

The fourth quarter is seasonally weak for Arctic Glacier because cold weather reduces demand. The trust’s recent expansion into the US has reduced the seasonality but not entirely eliminated it. The important thing is that sales for 2006 increased 40 percent to CD219.2 million from CD156.4 million in 2005, while the overall payout ratio came down to just 87.2 percent for the year based on distributable cash.

A&W Revenue Royalties Income Fund (AW.UN, AWRRF) reported a 30 percent increase in fourth quarter profit compared with a year ago, helped by increasing same-store sales and more hamburger restaurants included in the royalty pool. The fund earned CD4.4 million, or 52.2 cents Canadian per unit, for the three months ended December 31. That compared with a profit of CD3.3 million, or 40.1 cents Canadian per unit, in the same period a year ago.

Quarterly sales at the restaurants included in the royalty pool increased to CD191.5 million, up from CD173.4 million in the fourth quarter of 2005. Same-store sales in the quarter increased 6.2 percent, while the number of restaurants in the pool increased to 654 from 638 a year ago. For the full year, the fund reported a profit of CD11 million, or CD1.32 per unit, on sales at the restaurants included in the pool of CD598.6 million. That compared with a profit of CD9.4 million, or CD1.13 per unit, on sales of CD538.7 million in 2005.

Same-store sales for the year were up 7.4 percent. The fund also announced a special distribution of 8 cents Canadian per unit in addition to its regular monthly distribution of 10 cents Canadian per unit. The extra cash will be to be paid to unitholders of record at the close of business on February 15.

Bell Aliant Regional Communications Income Fund (BA.UN, BLIAF) boosted its monthly distribution by 2.9 percent, as it reported operating revenues of CD852.2 million in the fourth quarter. For the three months ended December 31, Bell Aliant reported net earnings of CD163.1 million or CD1.31 per unit. Operating revenues were up CD16.4 million, or 2 percent, over the same period last year. The distribution increase to 23.5 cents Canadian from 22.83 cents Canadian per unit will begin with the February payout, on or about March 15.

Boston Pizza Royalties Income Fund (BPF.UN, BPZZF) reported an annual profit of CD14 million, up from CD11.5 million in the prior year, and the restaurant company boosted its monthly distribution by 1.8 percent. The Vancouver-based fund said its earnings amounted to CD1.30 per unit, compared with CD1.20 per unit in 2005. Boston Pizza opened more restaurants and served more customers than any other single year in its operating history.

Same-store sales grew 8.4 percent for the year. The company’s operating segment, Boston Pizza International, opened 41 new restaurants across Canada and closed one full-service restaurant, bringing its royalty pool to 266 restaurants at year’s end. The declared distributions for 2006 of CD14 million (CD1.28 per unit) compared to CD11.4 million (CD1.19 per unit) in 2005. The new monthly distribution will be 11.1 cents Canadian per unit, up from 10.9 cents Canadian.

Chemtrade Logistics Income Fund (CHE.UN, CGIFF) reported that cash available for distribution for the quarter ended Dec. 31, 2006, was CD8.9 million, or 26 cents Canadian per unit, versus CD9.7 million, or 29 cents Canadian per unit, in 2005. Net earnings for the fourth quarter were CD5.4 million compared with CD3.1 million in the same period in 2005. The results for the fourth quarter of 2006 include restructuring costs of CD2.7 million related to the cessation of SHS powder production at the Leeds plant.

Excluding restructuring costs, for the fourth quarter of 2006, cash available for distribution was CD11.6 million, or 35 cents Canadian per unit. Chemtrade expects to record additional restructuring charges of approximately CD1.5 million in future periods for certain costs related to the shutdown that hadn’t been incurred by year’s end. For the year ended Dec. 31, 2006, cash available for distribution was up to CD46.4 million from CD43.2 million in 2005, but it was down to CD1.38 from CD1.58 on a per-unit basis. In addition to the fourth quarter restructuring charge, the net earnings for 2006 included a noncash charge of CD12.3 million with respect to impairment in the value of property, plant and equipment used to manufacture SHS.

CI Financial Income Fund (CIX.UN, CIXUF) reported a rise in quarterly profit on the back of strong mutual fund sales as well as a gain from the sale of Amvescap PLC shares. Net income at Canada’s third-biggest investment fund manager was CD149.9 million, or 53 cents Canadian a unit, in the three months ended December 31. That was up from CD75.7 million, or 26 cents Canadian a unit, in the three months to the end of November 2005. CI changed its financial year-end to December 31 when it started trading as an income trust on June 30, 2006.

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose to CD181.7 million, or 65 cents Canadian a unit, up 29 percent from CD140.7 million, or 49 cents Canadian, in the quarter ended Nov. 30, 2005. Assets under management grew 18 percent to CD62.7 billion as of December 31 from CD53.1 billion at Nov. 30, 2005.

Cinram International Income Fund (CRW.UN, CRWFF) posted fourth quarter earnings of CD161.8 million, an increase of 32 percent from CD122.1 million in 2005. Fourth quarter DVD revenue was up 3 percent to CD351.5 million from CD339.8 million in 2005 based on strong movie titles from its major customers. The proportion of revenue from DVDs increased to 57 percent from 52 percent in 2005 because of the erosion in fourth quarter compact disc sales. For the year ended Dec. 31, 2006, DVD revenue was down 6 percent to CD1 billion from CD1.1 billion in 2005. High customer concentration made Cinram susceptible to the bad decisions of just a few studio executives, and it hurt in 2006. Earnings declined to CD377.2 million from CD390.9 million. Revenue for the year of CD1.9 billion was down from CD2.1 billion in 2005.

Clearwater Seafoods Income Fund (CLR.UN, CWFOF) boosted sales in its more-profitable species, benefiting from particularly strong conditions for scallops, but foreign exchange activity sucked CD19 from sales and margins. Gross profit improved 20 percent to CD86.7 from CD72.2 million in 2005. Fourth quarter 2006 sales and gross profit were CD84.1 million and CD19.6 million, respectively, up from CD84.2 million and CD18.7 million in 2005. Net earnings for 2006 were CD1.5 million versus CD19.9 million in 2005.

Excluding the impact of CD23 million of noncash foreign exchange losses in 2006 and CD3.6 million of noncash gains in 2005, net earnings improved from CD16.3 million to CD24.5 million. Distributable cash for 2006 increased to CD42.4 million, up 56 percent from 2005. Clearwater reinstated distributions at a rate of 60 cents Canadian per unit per year and paid out CD15.8 million during 2006.

CML Healthcare Income Fund (CLC.UN, CMHIF) reported that fourth quarter net earnings increased 25.3 percent to CD21.8 million (27 cents Canadian per unit) from CD17.4 (22 cents Canadian per unit) a year ago. Revenue rose 4.2 percent CD72 million from CD69.1 million in the fourth quarter of 2005. For the year, CML boosted earnings 16.1 percent to CD92.4 million (CD1.14 per unit) from CD79.6 million (CD1 per unit) for full year 2005. Revenue for 2006 was up 6 percent at CD288.9 million from CD272.6 million. The fund reported distributable cash of CD98.8 million and declared distributions totaling CD85.1 million for an 86.2 percent payout ratio.

Contrans Income Fund (CSS.UN, CSIUF) generated an increase of more than 18 percent in total revenue for 2006, from CD385.5 million in 2005 to CD455.2 million. Acquisitions generated additional revenues of CD49.4 million for the year and CD17.3 million in the fourth quarter of 2006 and boosted earning by CD3.6 million for the year and CD1.5 million during the three months ended Dec. 31, 2006. Cash flow from continuing operations amounted to CD49.6 million in 2006 compared to CD39.6 million in 2005.

Custom Direct Income Fund (CDI.UN, CUDFF) reported that sales and gross profits increased by 0.3 percent and 0.6 percent, respectively, and operating income increased 5.9 percent compared to the fourth quarter of 2005. Sales increased 3.2 percent, and gross profits were up 2.4 percent, while operating income decreased 0.4 percent for the full year ended Dec. 31, 2006, compared to 2005.

Davis & Henderson Income Fund (DHF.UN, DHIFF) boosted its monthly distribution 3.1 percent to 13.2 cents Canadian a share, beginning with the March payment. The company reported that fourth quarter net income fell to 37.5 cents Canadian a share from 39.5 cents on higher amortization expenses related to an acquisition.

FutureMed Healthcare Income Fund (FMD.UN, FMDHF) reported a 23 percent boost in fourth quarter sales, an increase reflected across all geographic markets and most product categories. Earnings for the period were up 29 percent as total sales rose to CD28.7 million from CD23.3 million a year ago. For the year ended Dec. 31, 2006, sales were up 9.2 percent to CD105.1 million from CD96.3 million in 2005. FutureMed generated distributable cash of CD4.2 million (31 cents Canadian per unit) for the fourth quarter and CD13.9 million (CD1.03 per unit) for 2006.

GMP Capital Trust (GMP.UN, GMCPF) reported net income of CD30.6 million (48 cents Canadian per unit) for the three months ended Dec. 31, 2006, up from CD13.5 million (23 cents Canadian per unit) in the two months ended Dec. 31, 2005. Expenses more than doubled to CD68.9 million in the quarter because of higher compensation and benefits costs.

GMP changed its fiscal year-end to December 31 from October 31 when it converted into an income trust in late 2005. Net income was CD120 million for 2006 on a 40 percent rise in revenue to CD357.3 million. GMP is looking to expand into other investment banking sectors to diversify away from mining and energy, which accounted for just less than 60 percent of investment banking revenue in the fourth quarter. For the full year, mining and oil and gas represented 77 percent of investment banking revenue.

Home Equity Income Trust (HEQ.UN), which pays cash distributions earned from a portfolio of reverse mortgages originated by Canadian Home Income Plan (CHIP), reported that its mortgage portfolio grew by 15 percent to CD611.9 million during 2006, while loan originations grew by 18 percent to a record CD104.6 million. Net income increased 47 percent to CD7.3 million. Origination and administrative costs were within the trust’s stated target ranges.

Net income per unit increased 36 percent to 54 cents Canadian. Distributable cash per unit was CD1.19, an increase of 7 percent over 2005. The payout ratio stood at 89.8 percent as of the end of 2006. Home Equity recently signed origination referral agreements with Dundee Wealth Management and CIBC.

KCP Income Fund’s (KCP.UN, KCPIF) chief executive says a planned sale of the fund may not happen in the near future if the market doesn’t offer the household cleaning products firm the value it deserves as its earnings rise. The company is “by no means committed to a conclusion of this transaction or any change of our structure at the end of this process,” CEO David Cynamon told investors in a quarterly conference call Monday.

“We really want to understand it and see what our options are,” he said. “We feel that we can always be patient and wait and decide if some of the options are better achieved later–maybe this time next year.”

KCP said last November it was considering “strategic alternatives” to enhance unitholder value in the wake of the federal announcement to start taxing existing trusts in 2011. The trust–which operating as KIK Custom Products owns 19 North American plants that make national brand and store brand laundry detergent, household cleaners, over-the-counter remedies and personal care products, ranging from deodorants and sunscreen to shampoo and shaving cream–reported fourth quarter revenue of USD263.1 million, up from USD242.4 million in the year-ago period. Net income increased to USD10 million from USD6.5 million. Full year revenue was USD1.07 billion, compared with USD626.9 million in 2005.

The Keg Royalties Income Fund (KEG.UN, KRIUF) reported total system sales for the fourth quarter of 2006 of CD106.4 million compared to CD93.4 million a year ago, an increase of 13.8 percent. Same-store sales increased by 10.5 percent in Canada and by 7.9 percent in the US. Consolidated same-store sales increased by 9.6 percent for the quarter.

Menu Foods Income Fund (MEW.UN, MNUFF) scraped out a CD1.8 million profit in the fourth quarter, thanks to higher prices, but the pet food maker’s distribution remains suspended. Menu Foods reported fourth quarter sales of CD87.9 million, up 3.6 percent from CD84.8 million in the final three months of 2005, while cost of sales was cut to CD74.3 million from CD77.1 million. The CD1.8 million in net income was worth 9.4 cents Canadian per unit and compared with a year-ago loss of CD13.8 million, or 78 cents Canadian per unit.

With its distribution suspended, the fund used its cash to fund operations and reduce debt, paying off CD27.7 million in bank loans and long-term debt during the year. The trust said its board “is monitoring the future business prospects, growth opportunities and cash requirements and will determine an appropriate distribution policy.”

Mullen Group Income Fund (MTL.UN, MNTZF) almost doubled its net annual income and revenue on the strength of its booming oilfield trucking operations. Revenue for 2006 topped CD1 billion, up from CD591.7 for 2005, and net annual income jumped 83 percent to CD128.1 million (CD1.86 per unit) from CD70 million. Net income growth was driven mainly by acquisitions completed during 2005 and 2006, along with modest price and volume increases in the preexisting businesses in the trucking/logistics segment.

Even with reduced drilling activity, Mullen reported that its oilfield segments brought in CD604.3 million in total revenues in 2006, compared to CD400.4 million from trucking. Net income for the three months ended Dec. 31, 2006, was down to CD14 million (17 cents Canadian per unit) from CD24 million (52 cents Canadian per unit) during the same period a year earlier because of a number of noncash items.

Newalta Income Fund’s (NAL.UN, NALUF) expansion into Ontario, Quebec and Atlantic Canada helped boost year-end earnings by 61 percent in 2006. Newalta earned CD75.6 million (CD2.11 per unit) for the year, up from CD46.9 million (CD1.66 per unit) in 2005. The diversification Newalta achieved via seven acquisitions in 2006 offset slower operations in Western Canada.

The acquisitions increased Newalta’s market share to 15 percent in the CD1.25 billion eastern Canadian industrial waste market, complementing its control of half the CD750 million Western Canada market share. Newalta now controls approximately 25 percent of the national