2006 Results: Hydro-Québec garners net income of $3,741 billion and pays $2,342 billion in dividends to the Québec government



    MONTREAL, April 10 /CNW Telbec/ - Hydro-Québec's net income rose
$1,489 million to reach $3,741 million. This increase stems mainly from gains
on the disposal of foreign holdings, totalling $917 million - including $813
million on the sale of Transelec, in Chile - and the recognition of a one-time
$234-million foreign exchange gain on loans and swaps denominated in U.S.
dollars.
    Income from continuing operations increased by 19% to $2,797 million in
2006, compared to $2,351 million in 2005. Income from discontinued operations
amounted to $944 million in 2006 following the sale of our foreign holdings.
    "Hydro-Québec is very profitable. This performance is attributable to the
hard work of its employees," said Thierry Vandal, President and Chief
Executive Officer of Hydro-Québec.
    "The year 2006 was marked by numerous accomplishments and projects. We
exceeded our energy efficiency targets, successfully integrated additional
megawatts from wind farm generation and expanded our generating fleet by
commissioningthe Eastmain-1 powerhouse several months ahead of schedule,"
concluded Mr. Vandal.

    Consolidated Results

    Revenue totaled $11,161 million, up 2.5%. Revenue from Québec sales grew
by $281 million owing to increased baseload demand and to rate adjustments.
Net electricity exports to markets outside Québec contributed $564 million to
net income. These exports accounted for 20% of income from continuing
operations but only 3.8% of sales volume.
    Cash from operations amounted to $4 billion, and revenue of $2 billion
was generated by the sale of our foreign holdings. Investments in generation,
transmission and distribution projects totaled $3.5 billion.
    This year, Hydro-Québec is paying its highest dividends to date at
$2,342 million, which brings the total dividends paid to the Québec government
since 1998 to more than $8.7 billion.

    Segmented Results

    Hydro-Québec Production recorded net income from continuing operations of
$2,114 million in 2006, compared to $1,873 million in 2005. The increase is
mainly due to the above-mentioned foreign exchange gain.
    Hydro-Québec TransEnergie's net income from continuing operations was
$632 million in 2006. This $252-million increase was attributable to a
$347-million hike in revenue following the $340-million adjustment in native
load transmission rates for 2005 and 2006 granted by the Régie de l'énergie in
view of the growth in domestic demand. However, this hike in revenue was
partially offset by higher depreciation and amortization expense.
    Hydro-Québec Distribution's net income from continuing operations was
$42 million in 2006, down $130 million from 2005. The increase in revenue from
electricity sales did not offset the rise in the cost of electricity purchases
beyond the heritage pool and in depreciation and amortization expense.
    The 1.5-TWh increase in baseload demand was driven primarily by housing
starts. However, the unusually mild temperatures in 2006 reduced demand by
3.3 TWh.
    Hydro-Québec Equipement and the Société d'énergie de la Baie James (SEBJ)
subsidiary carried out activities worth a total of $1,999 million in 2006,
slightly down from $2,059 million in 2005. The high volume reflects the
continuation of numerous large projects.

    Hydro-Québec's annual report is available at 
http://www.hydroquebec.com/media




For further information:

For further information: Hydro-Québec - Media and Emergency
Communication Team: Flavie Côté, Press Officer, (514) 289-2211 #2220,
Cote.Flavie@hydro.qc.ca, Press room: http://www.hydroquebec.com/media


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