NewswireToday - /newswire/ -
Montréal, Québec, Canada, 2010/08/13 - Hydro-Québec posted net income of $1,820 million for the first six months of 2010, compared to $1,758 million in 2009.
This stems from the fact that Hydro-Québec Production was able to increase its exports due to lower sales in Québec as a result of the mild temperatures recorded during the winter of 2010.
In light of the satisfactory results posted for the first six months, Hydro-Québec (hydroquebec.com) is confident of reaching net income in the order of $2.4 billion in 2010. This figure is in line with the Strategic Plan 2009–2013 and the Québec budget brought down on March 30.
Hydro-Québec Production posted net income of $1,169 million for the first six months, compared to $1,224 million for the same period in 2009. Net electricity exports, including the positive impact of the company’s hedging operations for wholesale market activities, increased by $169 million because of higher volumes due mainly to the mild temperatures recorded in Québec in 2010. This increase was offset by a $75-million decrease in revenue from electricity sales to Hydro-Québec Distribution as a result of the temperature effect, and by an $87‑million increase in transmission system reservation costs paid to Hydro-Québec TransÉnergie.
Hydro-Québec TransÉnergie’s net income amounted to $269 million, compared to $232 million in 2009.
Hydro-Québec Distribution posted net income of $375 million in the first six months, an increase of $72 million over 2009. Revenue from electricity sales decreased by $240 million because of the mild temperatures recorded in the winter of 2010. This decrease was more than offset by a $162‑million reduction in net electricity and fuel purchases and by the recognition of a $105‑million regulatory asset for revenue variances related to climate conditions.
The volume of activity of Hydro-Québec Équipement and Société d’énergie de la Baie James (SEBJ) totaled $1,246 million in the first six months of 2010, compared to $1,044 million in 2009. Among the major projects under way are Eastmain-1-A/Sarcelle/Rupert and construction of the Romaine-2 hydroelectric development.
At June 30, 2010, investments totaled $1,889 million, compared to $1,720 million in 2009. As expected, a large portion of this amount was devoted to the company’s growth and development projects and to the continued implementation of the Energy Efficiency Plan.
Hydro-Québec did not make any significant borrowings in the second quarter of 2010. In March 2010, the reopening of the bond issue maturing in February 2050 raised $0.5 billion on the Canadian market at a rate of 4.75%.