First quarter 2012: Hydro-Québec posts net income of $1,336 million

Hydro-Québec posted net income of $1,336 million for the first three months of 2012, compared to $1,402 million for the same period last year. The difference is due to a decrease in revenue from net electricity exports by Hydro-Québec Production and to electricity purchases from Rio Tinto Alcan.

Segmented operations

Hydro-Québec Production recorded net income of $613 million, compared to $782 million in 2011. The $169-million decrease was the result of a $68?million reduction in revenue from electricity sales to Hydro-Québec Distribution on account of the mild temperatures in winter 2012. In addition, Hydro-Québec Production purchased $33 million of electricity from Rio Tinto Alcan. Revenue from net electricity exports decreased by $30 million, essentially because of market conditions. Lastly, Hydro-Québec Production made a $10?million contribution to the Northern Plan Fund under the Act to establish the Northern Plan Fund.

Hydro-Québec TransÉnergie’s net income was $157 million, up $22 million from 2011.

Hydro-Québec Distribution posted net income of $549 million, an increase of $72 million over 2011. Revenue from electricity sales decreased by $113 million, mainly on account of the mild temperatures in winter 2012. This decrease was offset by a positive variance of $94 million in the amounts that Hydro-Québec will be able to recover from customers, primarily for revenue variances related to climate conditions, and by a $62-million decrease in electricity purchases.

In the Construction segment, work handled by Hydro-Québec Équipement et services partagés totaled $340 million, compared to $328 million in 2011. Among other projects carried out for Hydro-Québec Production, the division continued construction of the Romaine complex. Work done for Hydro-Québec TransÉnergie included connecting Romaine-2 generating station, integrating output from wind farms and various projects stemming from continued investment in asset sustainment, among other things. As for the Société d'énergie de la Baie James, its volume of activity amounted to $45 million, compared to $81 million last year. In January 2012, the Eastmain?1?A/Sarcelle/
Rupert project reached an important milestone with the commissioning of the last generating unit at Eastmain?1?A powerhouse.

Investments

In first quarter 2012, Hydro-Québec invested $738 million, an amount comparable to the 2011 figure. As expected, a large portion of this amount was devoted to the company’s development and growth projects as well as to maintenance and improvement activities.