Quarter marked by an unprecedented volume of net exportsHydro-Québec’s net income up $116 million in the first quarter

Hydro-Québec posted net income of $1,641 million for the first three months of 2021, up $116 million over the $1,525 million recorded for the same period in 2020. This increase is mainly due to a $53-million rise in net electricity exports and a $62-million reduction in financial expenses.

“Our first-quarter results are very encouraging even though the pandemic still isn’t over,” commented Hydro-Québec’s Executive Vice President and Chief Financial Officer, Jean-Hugues Lafleur. “Our net export volume jumped more than 20% over last year to reach a record high. We’re therefore optimistic about the upcoming quarters, because we believe we’ll be able to bounce back while also helping our customers get back on their feet.”

Quarter highlights

Markets outside Québec:

Historic volume of net exports: 10.5 TWh

New records set in January and February

Average price obtained: 4.5¢/kWh

Customer support:

Extension of moratorium on service interruptions for unpaid bills until May 1, 2021

Investments:

$717 million invested in property, plant and equipment and intangible assets

Financing:

Two fixed-rate bond issues maturing in 2060, at an average cost of 2.52%
Proceeds: $0.9 billion

On the Québec market, net electricity sales declined by $9 million compared to first quarter 2020, due in particular to a 0.3-TWh drop in electricity sales. On the one hand, baseload demand fell by 0.6 TWh, partly because of lower consumption in the commercial, institutional and small industrial segment on account of the shutdown of a large number of businesses for several weeks during the winter, in keeping with the public health restrictions. However, this decrease was mitigated by higher residential demand, attributable to the fact that many customers continued to work from home in the context of the pandemic, among other things. On the other hand, temperatures, which were slightly colder in winter 2021, particularly in February, resulted in a 0.3-TWh increase in sales.

On markets outside Québec, net electricity exports increased by $53 million or 1.8 TWh to reach 10.5 TWh, an unprecedented volume for a single quarter.

Financial expenses fell by $62 million. This decrease is primarily due to the maturity of certain high-interest debts and the issuance of new debt at a much lower rate, given the favorable market conditions.

Finally, Hydro-Québec invested $717 million in property, plant and equipment and intangible assets in the first three months of 2021, compared to $738 million a year earlier. Work progressed on the Romaine-4 jobsite, as did construction of the 735-kV Micoua–Saguenay line. The company also carried on with its investments to ensure the reliability and long-term operability of its generation, transmission and distribution assets.

For more information on Hydro-Québec’s first-quarter 2021 results, visit www.hydroquebec.com/about/financial-results/quarterly-report.html.

For more information:
Caroline Des Rosiers
Hydro-Québec
Tel.: 514 289-5005