Montréal, November 15, 2019
Hydro-Québec’s net income reaches $2,243 million for the first three quarters of 2019
Hydro-Québec today announces net income of $2,243 million for the first three quarters of 2019. This result is comparable to that of the corresponding period last year, excluding a non?recurring gain of $277 million in 2018 resulting from the sale of an equity interest in the subsidiary TM4 and the $46-million writeoff in the second quarter of 2019 due to the Northern Pass Transmission project’s being shelved.
“The first nine months of the year were marked by higher baseload demand in most customer segments, which contributed to an increase of $120 million in net income. In light of these results, we have every reason to believe that we will achieve our target net income for 2019 of $2.7 billion, and will therefore be able to pay the expected dividend to the Québec government,” stated Jean-Hugues Lafleur, Executive Vice President and Chief Financial and Risk Officer.
Highlights for first nine months
- Québec market
- Increase baseload demand (excluding the impact of temperatures) in most customer segments
- Temperatures colder in winter 2019 than in the previous winter
- Markets outside Québec
- Net export volume above 25 TWh for a third consecutive year
- Increase in the average export price obtained (4.4¢/kWh)
- Operational expenditure
- Careful management of operational expenditure, making it possible to absorb the impact of inflation and salary indexing
- Financing activities
- Two fixed-rate bond issues maturing in 2055 during the third quarter, at an average cost of 2.31%, for proceeds of $1.4 billion
- Total amount raised since the beginning of the year: $3.3 billion
On the Québec market, electricity supplies provided by Hydro-Québec Production to Hydro-Québec Distribution increased by $120 million compared to the same period in 2018. This growth resulted from an increase in the volume of electricity sales, mainly in the first quarter.
On markets outside Québec, Hydro-Québec Production’s net electricity exports decreased by $80 million, primarily because demand was lower on export markets during the second quarter as a result of temperature variances. The impact of the volume decrease was mitigated by an increase in the average price obtained, mainly on account of the positive effect of the company’s risk management strategy. Net electricity export volume remains very strong, at over 25 TWh on the corresponding date for a third consecutive year.
Finally, Hydro-Québec invested $2,458 million in property, plant and equipment and intangible assets in the first nine months of 2019, compared to $2,376 million in the corresponding period last year. The work to construct and connect the Romaine hydroelectric complex continued. The company also completed the 735?kV Chamouchouane−Bout-de-l’Île project in the second quarter and inaugurated the facilities in July. In addition, Hydro-Québec continued to invest in asset reliability and sustainment for its generation, transmission and distribution assets.
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