Montréal, February 20, 2019

Press Release

Financial results for 2018Hydro-Québec’s net income up 12% over 2017

Éric Martel, President and Chief Executive Officer of Hydro-Québec, and Jean-Hugues Lafleur, Executive Vice President and Chief Financial and Risk Officer, today announce the company’s results for 2018. Net income totaled $3,192 million, up $346 million or 12% over 2017. This marked increase is mainly due to the sale of an equity interest in Hydro-Québec’s subsidiary TM4 to Dana Incorporated, a well-established player in the automotive industry. It is also attributable to a larger volume of electricity supplied by Hydro-Québec Production on the Québec market. 

“Thanks to our employees’ engagement and to our effective and prudent management, 2018 was a remarkable year in more ways than one,” said Mr. Martel. “Our solid performance also stems from a strategy that involves seizing growth opportunities in a constantly changing business environment. And we’re very proud of the fact that, for the fourth year in a row, we’ve upheld our commitment that electricity rate increases will not exceed inflation.”  

2018 highlights

Creation of a strategic partnership with a leading global player:

  • Gain of $277 million on the partial sale of subsidiary TM4 to Dana
  • Opportunity for TM4 to realize its full business potential

Net electricity exports of 36.1 TWh, an unprecedented volume:

  • 1.7-TWh increase over the previous record, set in 2017
  • Contribution of $744 million to net income

Solid performance in Québec:

  • Increase in electricity demand in most customer segments
  • Temperatures colder in 2018 than in 2017 during certain months

Economic spin-offs of Hydro-Québec’s operations:

  • Contribution to the Québec government’s revenue: $4.5 billion

- Exceeded the $4-billion mark for the sixth year running

  • Major investments throughout Québec: $3.4 billion
  • Procurement of goods and services in Québec: $2.6 billion

Financing activities

  • Three bond issues maturing in 2055, at an average cost of 3.06%
  • Funds raised: $1.8 billion

Consolidated results

Hydro-Québec posted net income of $3,192 million in 2018, a $346-million increase compared to $2,846 million in 2017. This growth is mainly due to the recognition of a $277-million gain on the partial sale of the company’s subsidiary TM4. In addition, on the Québec market, electricity supplies provided by Hydro-Québec Production to Hydro-Québec Distribution increased by $153 million over the previous year. Net electricity exports rose by 1.7 TWh to reach a historic high of 36.1 TWh. This strong volume is attributable to an effective sales strategy, the smooth operation of generation and transmission facilities, and high runoff. However, the positive impact of this volume growth was offset by the impact of the lower average export price obtained.


Hydro-Québec’s investment program totaled $3,402 million in 2018, mainly because of the continuation of the company’s major projects in the generation and transmission segments.

One of the main jobsites involves the construction and connection of the Romaine hydroelectric complex (1,550 MW) in the Côte-Nord region. Three of the four reservoir generating stations in this complex are already in operation, while the commissioning of the last facility, Romaine-4 (245 MW), is slated for 2021. Excavation of the water intake and spillway was completed in 2018, and excavation of the generating station cavern is continuing, along with construction of the switchyard.

Work also proceeded on the 735-kV Chamouchouane–Bout-de-l’Île project. This project has two components: first, deployment of 735-kV lines extending approximately 400 km between Chamouchouane substation, in the SaguenayLac-Saint-Jean region, and the Montréal metropolitan loop, as well as the rerouting of a short segment of 735-kV line to Bout-de-l’Île substation, in Montréal; and, second, construction of 735/120/25-kV Judith-Jasmin substation in Terrebonne, in the Lanaudière region. The substation’s 735-kV section and the rerouted line segment were commissioned in 2018, and the other facilities will follow in 2019.

“The excellent results we’re announcing today will allow us to pay a dividend of $2,394 million to the Québec government—the second-largest dividend in our history,” stated Jean-Hugues Lafleur. “This significant contribution, combined with the economic spinoffs of the company’s operations throughout the province, will benefit all Quebecers.”

For more information on Hydro-Québec’s 2018 financial results, visit



Maxence Huard-Lefebvre
Tel.: 514 289-5005


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