MONTREAL, Nov. 9 /CNW Telbec/ - For the nine months ended September 30,
2007, the Corporation posted income from continuing operations of
$2,262 million, or $213 million more than for the same period of 2006.
"Hydro-Québec's good performance is mainly due to growth in electricity
exports" said Daniel Garant, Executive Vice-President - Finance and Chief
Financial Officer at Hydro-Québec.
Income from discontinued operations was $21 million, compared to
$919 million in 2006. The 2007 income resulted primarily from an $18-million
gain in the first quarter on the sale of DirectLink (Australia). The 2006
income was chiefly derived from the sale of Transelec (Chile).
For the nine months ended September 30, 2007, net income totaled
$2,283 million, as against $2,968 million in 2006. The reduction in net income
was due to gains of $878 million on disposals of assets in 2006.
Income from continuing operations for the third quarter of 2007 was
$217 million, down $117 million from 2006. The difference is attributable to
an increase in electricity purchases, reflecting prudent management of energy
However, it should be mentioned that Hydro-Québec Production's net
exports were up and that a positive variance in net revenue from special
contracts with large-power industrial customers was noted after nine months.
For the first nine months of the year, Hydro-Québec Production posted net
income of $1,579 million, a decrease of $105 million compared to 2006, when a
$234-million non-recurring foreign exchange gain had been recorded.
Growth in net electricity exports and the increase in net revenue from
special contracts were partially offset by the introduction of water-power
royalties in January 2007. In January 2007, Hydro-Québec Production started
paying water-power royalties to the Québec government.
Hydro-Québec TransEnergie's net income amounted to $381 million, a
decrease of $149 million from 2006. Following a decision of the Régie de
l'énergie in April 2006, non-recurring native load transmission revenue of
$170 million for 2005 had been recognized in second quarter 2006.
For the first three quarters of 2007, Hydro-Québec Distribution posted
net income of $287 million, versus a $175-million loss for the same period of
2006. This growth is mainly due to higher revenue from electricity sales,
partially offset by an increase in electricity purchases in excess of the
heritage pool. Sales volume was 126.5 TWh, or 3.1 TWh more than in 2006,
attributable mainly to colder temperatures.
Furthermore, the recognition in 2006 of $170 million in non-recurring
costs for 2005 contributed to an equivalent increase in net income.
The volume of activity at Hydro-Québec Equipement and Société d'énergie
de la Baie-James totaled $1,455 million for the first nine months of 2007,
compared to $1,367 million in 2006. Noteworthy among the major projects being
carried out was the start of construction on the Eastmain-1-A/Sarcelle/Rupert
As at September 30, 2007, investments totaled $2,473 million, which is
comparable to the $2,303 million recorded in 2006. A large portion of this
amount was devoted to the Eastmain-1-A/Sarcelle/Rupert, Péribonka,
Chute-Allard and Rapides-des-Coeurs projects.
In the third quarter, a new $498-million borrowing was made, bringing
total debt issues for the first three quarters to $1,024 million. The average
cost of these financings, contracted on the Canadian market, was 4.87%.
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For further information: Hydro-Québec - Media Relations: Flavie Côté,
Press Officer, (514) 289-2220, Cote.Flavie@hydro.qc.ca; Press room: