Hydro-Québec’s first-quarter net income up $130 million, for an increase of 8%

Hydro-Québec today announces net income of $1,774 million for the first quarter of 2019, an increase of $130 million compared to $1,644 million in the same period in 2018. This is among the company’s best first-quarter performances to date.

“Across all of our markets, net sales volume reached 65.4 TWh, just shy of the record of 65.7 TWh set in the first three months of 2015,” said Jean-Hugues Lafleur, Executive Vice President and Chief Financial and Risk Officer of Hydro-Québec. “We were able to meet the rise in demand on the Québec market while also maximizing our exports thanks to the smooth operation of our generating, transmission and distribution facilities, combined with the sustained efforts of our entire staff.”

Quarter highlights

Markets outside Québec

High volume of net electricity exports: 10.0 TWh
Volume comparable to the 10.1-TWh record set in the first quarter of 2017
Increase in the average export price obtained (5.1¢/kWh)

Québec market

Increase in baseload demand (excluding the impact of temperatures) across all customer segments
Temperatures colder in 2019 than in 2018

Operational expenditure

$15-million decrease compared to the first quarter of 2018
Careful management of expenses, making it possible to completely absorb the impact
of inflation and salary indexing

First major financing of 2019

Issuance of fixed-rate bonds maturing in 2055, at a cost of 3.02%
Proceeds: $0.6 billion

On markets outside Québec, Hydro-Québec Production’s net electricity exports rose by $29 million under the combined effect of volume growth of 0.2 TWh compared to the first quarter last year, and the higher average price obtained.

On the Québec market, electricity supplies provided by Hydro-Québec Production to Hydro-Québec Distribution increased by $107 million over the corresponding period in 2018. This growth is due to a higher volume of electricity sales.

Finally, Hydro-Québec invested $566 million in property, plant and equipment and intangible assets in the first quarter of 2019, compared to $697 million a year earlier. Work progressed on the construction and connection of the Romaine hydroelectric complex, as well as on the 735-kV Chamouchouane–Bout-de-l’Île project, which is nearing completion. The company also carried on with its investments to ensure the reliability and long-term operability of its generation, transmission and distribution assets.

Quarterly Report: http://www.hydroquebec.com/about/financial-results/quarterly-report.html

For more information:

Maxence Huard-Lefebvre
Hydro-Québec
Tel.: 514 289-5005