Montréal, May 23, 2014
Hydro-Québec’s net result up $403 million in the first quarter
In the first quarter of 2014, Hydro-Québec posted a net result of $1,763 million, an increase of $403 million over the $1,360 million recorded in 2013 that is due to the very cold temperatures in winter 2014. Net electricity exports by Hydro-Québec Production generated $233 million more than last year as a result of market conditions, while the Québec market’s contribution increased by $166 million.
Hydro-Québec Production recorded a net result of $1,132 million, compared to $736 million in 2013. This $396-million increase is due to the very cold temperatures in winter 2014. Net electricity exports generated $233 million more than last year as a result of very favorable market conditions. The Québec market’s contribution increased by $176 million, mainly because of the additional peak supplies provided by Hydro-Québec Production to Hydro-Québec Distribution.
Hydro-Québec TransÉnergie’s net result was $161 million, comparable to the $168 million recorded in the first quarter of 2013.
Hydro-Québec Distribution posted a net result of $452 million, compared to $442 million in 2013. Revenue from electricity sales increased by $363 million due to the very cold temperatures in winter 2014 and the April 1, 2013 rate adjustment. Other revenue also increased, mainly on account of the amounts due to Hydro-Québec for the additional supply costs incurred in winter 2014. Net electricity purchases and the related transmission costs rose by $512 million, primarily because of temperatures. Supplies from third parties thus increased by $309 million due to wind power purchases and ad hoc winter requirements, while supplies from Hydro-Québec Production increased by $229 million.
In the Construction segment, the volume of activity at Hydro-Québec Équipement et services partagés and Société d’énergie de la Baie James totaled $418 million, compared to $442 million in 2013. Projects under way for Hydro-Québec Production include ongoing construction of the Romaine complex. Work in progress for Hydro-Québec TransÉnergie includes expansion of the transmission system in the Minganie region, the addition of a 735/315-kV section and related work at Bout de l’Île substation as well as various projects stemming from continued investment in asset sustainment.
In the first quarter of 2014, Hydro-Québec invested $750 million in property, plant and equipment and intangible assets, compared to $793 million in 2013. As expected, a large portion of this amount was devoted to the company’s growth and development projects as well as to maintenance and improvement activities.