Montréal, May 20, 2016
First-quarter net income exceeds $1.5 billion for the third time in Hydro-Québec’s history
Lise Croteau, Executive Vice President and Chief Financial Officer of Hydro-Québec, today announces the company’s results for the first quarter of 2016. Net income totaled $1,584 million, compared to $1,790 million last year, when winter temperatures were exceptionally cold.
• Net income of $1,584 million
-Québec market: milder-than-normal temperatures led to a 5.1-TWh reduction in electricity sales compared to 2015
-Markets outside Québec: net electricity exports were maintained at 8 TWh for $571 million
• Major investments throughout Québec: $618 million
-Ongoing work to build and connect the Romaine hydroelectric complex
-Work on the 735-kV Chamouchouane–Bout-de-l’Île project
On the Québec market, temperature variances led to a 5.1-TWh reduction in electricity sales compared to last year, and consequently to a $223-million decrease in supplies provided by Hydro-Québec Production to Hydro-Québec Distribution.
On markets outside Québec, Hydro-Québec Production’s net electricity exports were maintained at more than 8 TWh for $571 million, comparable to the 2015 figure. This result is partly attributable to the positive impact of the company’s risk management strategy in a context marked by lower prices on energy markets. The drop in prices is due to the fact that winter 2015–2016 was the mildest on record in over 100 years in the United States.
Finally, Hydro-Québec invested $618 million in property, plant and equipment and intangible assets in the first three months of 2016, compared to $612 million in 2015. Most of this amount was allocated to the company’s growth and development projects as well as to asset maintenance and improvement activities.