Hydro-Québec posts increase in net result

For the second quarter of 2013, Hydro-Québec posted a net result of $464 million compared to $386 million in 2012, an increase of $78 million. For the six months ended June 30, 2013, the net result was $1,824 million, or $102 million more than the $1,722 million recorded in the same period last year. These results are mainly due to growth in net electricity exports.

Segmented operations for the first six months
Hydro-Québec Production posted a result from continuing operations of $1,111 million, compared to $928 million in 2012. This $183-million increase is due to growth of $132 million in net electricity exports and of $79 million in revenue from electricity sales to Hydro-Québec Distribution, mainly because temperatures were close to normal in the first half of 2013, whereas they had been milder in 2012, and because demand rose in Québec. In addition, electricity purchases from Rio Tinto Alcan decreased by $61 million. These factors were mitigated by a $28-million increase in water-power royalties.

Hydro-Québec TransÉnergie’s result from continuing operations was $292 million, a $23-million decrease from 2012 that essentially stems from differences in the amounts that Hydro-Québec is entitled to receive from customers or is required to pay to them in connection with such things as variances in revenue from point-to-point transmission services.

Hydro-Québec Distribution posted a result from continuing operations of $388 million, compared to $471 million in 2012. Revenue from electricity sales increased by $273 million on account of three main factors: temperatures that were close to normal in the first half of 2013, whereas they had been milder in 2012; higher demand, primarily in the residential sector; and the rate adjustments of April 1, 2012 and 2013. Other revenue decreased by $103 million, essentially because of differences in the amounts that Hydro-Québec is entitled to receive from customers or is required to pay to them in connection with such things as revenue variances related to climate conditions, given the mild temperatures in 2012. Moreover, electricity purchases increased by $216 million, $147 million of which related to supplies from independent power producers and $79 million to supplies from Hydro-Québec Production.

In the Construction segment, the volume of activity at Hydro-Québec Équipement et services partagés and Société d’énergie de la Baie James totaled $1,060 million, compared to $916 million in 2012. Projects under way for Hydro-Québec Production include ongoing construction at the Romaine jobsites. 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.

Investment
Hydro-Québec invested $1,802 million during the first six months of 2013, compared to $1,614 million in 2012. 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.

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Information:

Danielle Chabot
Media Relations
Tel.: 514 289-3173
E-mail: chabot.danielle.2@hydro.qc.ca