MONTREAL, Nov. 13 /CNW Telbec/ - Net income for the first nine months of 2009 totaled $2,180million compared to $2,662 million in 2008, when Hydro-Québec had posted $254 million in non-recurring items, including a $129 million regulatory asset for revenue variances mainly related to the warmer temperatures recorded in 2006 and an additional gain of $125 million on the sale of the company's interest in Transelec (Chile). Excluding these non-recurring items, the decrease in net income is $228 million, or 9%. This shortfall is primarily due to a decline in revenue from net electricity exports whereas in 2008, Hydro-Québec had benefited from particularly favorable export market prices.
"Based on our results for the first nine months, which are good in light of the more difficult economic context, we anticipate that net income for 2009 will exceed the Strategic Plan forecast of $2.7 billion," said Lise Croteau, Vice President - Accounting and Control.
Net income totaled $338 million in the third quarter of 2009, compared to $491 million in 2008. The difference is mainly attributable to lower demand from industrial customers in Québec and to the fact that export market prices were much more favorable in 2008 than in 2009.
Segmented results for the first three quarters
Hydro-Québec Production posted net income of $1,650 million, compared to $1,859 million for the same period of 2008. As at September 30, 2009, there was a decline in revenue from net electricity exports, which should be reversed in part by year-end. Moreover, the drop in aluminum prices led to a greater loss than in 2008 on special contracts with large industrial customers in Québec. These factors were partially offset by the positive effect of hedging aluminum prices and the decrease in amortization expense and capital tax.
Hydro-Québec TransÉnergie's net income amounted to $361 million, which is comparable to the 2008 figure of $368 million.
Hydro-Québec Distribution recorded net income of $157 million, compared to $308 million in 2008. This $151 million decrease is mainly due to the recognition, in June 2008, of a $129 million regulatory asset for revenue variances related to weather conditions in 2006 and 2007.
The volume of activity of Hydro-Québec Équipement and Société d'énergie de la Baie James (SEBJ) totaled $1,812 million, compared to $1,556 million in 2008. Among the major projects under way are Eastmain-1-A/Sarcelle/Rupert, the 1,250 MW interconnection with Ontario, procurement activities to refurbish Gentilly-2 nuclear generating station, and the Romaine project.
As at September 30, 2009, Hydro-Québec had invested $2,920 million, compared to $2,565 million in 2008. Most of this amount was devoted to the company's growth and development projects and to the Energy Efficiency Plan.
In the third quarter of 2009, Hydro-Québec raised $1.1 billion through the issue of variable-rate notes maturing in 2014, bringing the total amount of borrowings since the beginning of the year to $3.1 billion, all completed on the Canadian market.
For further information: For further information: Ariane Connor, Media Relations Hydro-Québec, (514) 289-5982, Connor.Ariane@hydro.qc.ca; Press room: http://www.hydroquebec.com/media