Montréal, September 11, 2015
For a second consecutive year, Hydro-Québec’s net result exceeded the $2-billion mark for the first six months
For a second year in a row, Hydro-Québec’s net result exceeded the $2-billion mark for the first six months. In a context marked by very cold winter temperatures, it totaled $2,129 million for the six-month period ended June 30, 2015, compared to $2,210 million in 2014. Hydro-Québec Production’s net electricity exports grew by $34 million. However, this increase was offset by a $92-million decrease in supplies provided by Hydro-Québec Production to Hydro-Québec Distribution, due in part to lower market prices in winter 2015 that benefited Québec customers. In addition, the depreciation and amortization expense increased by $36 million, mainly because of the commissioning of property, plant and equipment.
For the second quarter of 2015, Hydro-Québec posted a net result of $341 million, compared to $460 million in 2014. Hydro-Québec Production’s net electricity exports grew by $24 million, whereas supplies provided by Hydro-Québec Production to Hydro-Québec Distribution decreased by $68 million. The depreciation and amortization expense increased by $18 million.
Segmented results for the first six months
Hydro-Québec Production recorded a net result of $1,395 million, compared to $1,464 million in 2014. Net electricity exports grew by $34 million, whereas net electricity sales to Hydro-Québec Distribution decreased by $92 million. The depreciation and amortization expense increased by $29 million, in particular because of the commissioning of property, plant and equipment.
Hydro-Québec TransÉnergie’s net result amounted to $283 million, a $55-million decrease compared to 2014 that is essentially due to a $47-million change in amounts payable to customers in connection with depreciation and amortization.
Hydro-Québec Distribution posted a net result of $432 million, compared to $360 million in 2014. Revenue from electricity sales increased by $281 million, partly because of the very cold temperatures in winter 2015. Other revenue decreased, essentially because supply costs incurred during the winter for electricity in excess of the heritage pool were lower than last year. Moreover, electricity purchases and the related transmission costs decreased by $32 million. On the one hand, supplies from Hydro-Québec Production decreased by $92 million. On the other hand, supplies purchased from third parties increased by $24 million, primarily on account of wind power and biomass energy purchases, which increased by $126 million and $22 million, respectively, and which were offset by a $148-million reduction in short-term market purchases.
In the Construction segment, the volume of activity at Hydro-Québec Équipement et services partagés and Société d’énergie de la Baie James totaled $860 million, compared to $1,017 million in 2014. Projects under way for Hydro-Québec Production include ongoing construction of the Romaine hydroelectric complex. Work in progress for Hydro-Québec TransÉnergie includes expansion of the transmission system in the Minganie region, refurbishment of static var compensators at Albanel substation, as well as various projects stemming from continued investment in asset reliability and long-term operability.
In the first six months of 2015, Hydro-Québec invested $1,493 million in property, plant and equipment, intangible assets and the Energy Efficiency Plan, compared to $1,693 million in 2014. Most of this amount was devoted to the company’s growth and development projects as well as to asset maintenance and improvement activities.