First quarter 2013: Hydro-Québec posts a net result of $1,360 million
MONTREAL, May 17, 2013 /CNW Telbec/ - In the first quarter of 2013, Hydro-Québec posted a net result of $1,360 million, an increase of $24 million over the $1,336 million recorded in the same period of 2012. This growth is due, among other things, to higher revenue from net electricity exports by Hydro-Québec Production and to a decrease in electricity purchases from Rio Tinto Alcan. These factors were partly offset by the impact of the deferred implementation of Hydro-Québec Distribution's rate adjustment, which was amplified in 2013.
Hydro-Québec Production recorded a result from continuing operations of $745 million, compared to $620 million in 2012. This $125-million increase is due to a $67-million growth in revenue from net electricity exports and to a $52-million growth in revenue from electricity sales to Hydro-Québec Distribution, including special contracts, mainly on account of the mild temperatures in 2012. In addition, electricity purchases from Rio Tinto Alcan decreased by $29 million. When the discontinued operations are factored in, the net result for the first three months of the year totaled $736 million in 2013, compared to $613 million in 2012.
Hydro-Québec TransÉnergie's result from continuing operations was $168 million, an $11-million increase over 2012 that is notably due to an $11-million decrease in depreciation and amortization expense.
Hydro-Québec Distribution posted a result from continuing operations of $442 million, compared to $549 million in 2012. Revenue from electricity sales increased by $140 million, mainly on account of the mild temperatures in 2012 and higher demand, primarily in the residential sector. These factors were partly offset by the effect of the leap year, namely sales on February 29, 2012. They were also mitigated by the impact of the deferred implementation of Hydro-Québec Distribution's rate adjustment, i.e., the difference between the April 1 effective date of the rate adjustment and the recording of additional costs as of January 1, notably for electricity purchases from independent producers, which was amplified in 2013. Moreover, revenue variances related to climate conditions were less favorable in 2013 than in 2012. In addition, electricity purchases from Hydro-Québec Production increased by $46 million. Finally, bad debt related to electricity sales in Québec was $15 million higher than in 2012.
In the Construction segment, the volume of activity at Hydro-Québec Équipement et services partagés and Société d'énergie de la Baie James totaled $442 million, compared to $385 million in 2012. Projects carried out for Hydro-Québec Production included ongoing construction at the Romaine jobsites and work to complete the Eastmain-1-A/Sarcelle/Rupert development. Projects done for Hydro-Québec TransÉnergie included 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 continued investment in asset sustainment.
Hydro-Québec invested $793 million during the first three months of 2013, compared to $738 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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