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Varennes, Québec, Canada, 2011/03/23 - Hydro‑Québec earned net income of $2,515 million in 2010, exceeding the $2,400-million target in the Strategic Plan 2009–2013, despite difficult economic conditions - HydroQuebec.com.
• Net income: $2,515 million;
• Dividend: $1,886 million;
• Investments: $4.2 billion;
• Regional spinoffs: $2.7 billion;
• Work in progress at more than 1,000 jobsites;
• Energy savings to date: 5.3 TWh.
Hydro‑Québec earned net income of $2,515 million in 2010, exceeding the $2,400-million target in the Strategic Plan 2009–2013, despite difficult economic conditions marked by precipitation levels considerably lower than the historic average across its hydroelectric generating fleet.
“Despite low water inflows, Hydro-Québec was able to maintain a high level of profitability in 2010 thanks to the strict control of operating expenses, slightly higher-than-expected demand from industrial customers in Québec and the effective management of market risks,” said Thierry Vandal, President and Chief Executive Officer of Hydro-Québec. “This strong performance is a direct result of the commitment of our employees.”
The dividend paid to the Québec government for 2010 will reach $1,886 million.
Net income was $356 million lower than in 2009 because of a decrease in net exports of electricity in 2010 and an increase in financial expenses.
Hydro-Québec Production recorded net income of $1,605 million, down $448 million from the $2,053 million posted in 2009.
This decrease is mainly due to the fact that the division limited its net electricity exports in 2010 as a result of precipitation levels considerably lower than the historic average. However, the unit contribution made by net exports rose from 6.8¢/kWh in 2009 to 8.2¢/kWh in 2010. Despite the lower volume, net exports largely contributed to the company's profitability. Accounting for only 7% of the net sales volume, net exports generated 17% of the company’s net income.
Hydro-Québec TransÉnergie posted net income of $447 million, an increase of $12 million over 2009.
Hydro-Québec Distribution’s net income totaled $453 million, up $90 million from 2009. This increase is mainly due to a rise in industrial demand.
The Construction segment recorded a volume of activity of $2,607 million, compared to $2,645 million in 2009. Among the major projects under way are Eastmain-1-A–Sarcelle–Rupert and Romaine-2.
Hydro-Québec’s investments amounted to $4.2 billion in 2010, compared to $4.3 billion in 2009. Of this total, $2.0 billion was allocated to development projects and $2.0 billion to the maintenance and refurbishment of assets, while $0.2 billion went to the Energy Efficiency Plan.
Bond issues made on the Canadian market in 2010 raised $1.6 billion at an average rate of 4.50%.
For more information on Hydro-Québec's 2010 financial statements, please visit hydroquebec.com/ar2010.