NewswireToday - /newswire/ -
Montréal, Québec, Canada, 2010/11/18 - Hydro-Québec posted net income of $2,047 million for the first nine months of 2010, compared to $2,060 million in 2009.
This variance is due to a rise in financial expenses, which was mitigated by an increase in revenue from net electricity exports.
It should be noted, however, that the company has had to limit its exports since the past summer because precipitation levels in its large hydroelectric reservoirs have been well below average.
In light of the results posted for the first nine months of the year, Hydro-Québec remains confident of reaching net income on the order of $2.4 billion in 2010, in line with the Strategic Plan 2009–2013 and the Québec budget brought down on March 30.
Third quarter results
In the third quarter of 2010, net income amounted to $227 million, compared to $302 million in 2009. This $75-million variance is mainly due to an increase in Hydro-Québec Production’s short-term electricity purchases, which was partly offset by higher demand from industrial customers in Québec.
Segmented results for the first three quarters
Hydro-Québec Production posted net income of $1,412 million, compared to $1,532 million for the first three quarters of 2009, a decrease of $120 million. The increase in net export revenue was offset by a rise in transmission reservation costs and financial expenses.
Hydro-Québec TransÉnergie’s net income amounted to $396 million, an increase of $35 million over the first nine months of 2009.
Hydro-Québec Distribution posted net income of $238 million, an increase of $83 million over 2009. Revenue from electricity sales decreased because of the mild temperatures recorded in the winter of 2010, in spite of higher demand from industrial customers. This decline in revenue was more than offset by a net reduction in electricity and fuel purchases and transmission costs as well as by the recognition of a $105‑million regulatory asset related to the mild temperatures.
The volume of activity of Hydro-Québec Équipement and Société d’énergie de la Baie James (SEBJ) totaled $1,920 million, compared to $1,812 million in 2009. Among the major projects under way are Eastmain-1-A/Sarcelle/Rupert and construction of the Romaine-2 hydroelectric development.
At September 30, 2010, investments totaled $2,958 million, compared to $2,892 million in 2009. As expected, a large portion of this amount was devoted to the company’s growth and development projects.
In August, the reopening of the bond issue maturing in February 2050 raised $0.5 billion, bringing total borrowings for the first three quarters of 2010 to $1 billion. The average rate for these financings, contracted on the Canadian market, was 4.62%.