MONTREAL, Nov. 26, 2012 /CNW Telbec/ - Hydro-Québec's continuing operations
yielded satisfying results for the three- and nine-month periods ended
September 30, 2012, considering the economic context and market conditions.
Consolidated results for the third quarter
Hydro-Québec posted a result from continuing operations of $376million for
the third quarter of 2012, compared to $404million in 2011. The difference
is due to a $61-million reduction in the net result from special contracts
with certain large industrial customers in Québec on account of aluminum
prices and the exchange rate, as well as to electricity purchases of
$45million from Rio Tinto Alcan. These factors were partly offset by a
$51-million increase in revenue from net electricity exports by Hydro-Québec
Consolidated results for the first three quarters
For the first nine months of 2012, the result from continuing operations was
$2,121million, compared to $2,271million for the same period last year.
The difference is partly attributable to a decrease in revenue from
electricity sales in Québec owing to lower demand, mainly in the industrial
sector, which had an impact of $89million. It is also due to a $99-million
decrease in the net result from special contracts with certain large
industrial customers in Québec on account of aluminum prices and the exchange
rate, as well as to electricity purchases of $119million from Rio Tinto
Alcan. These factors were partly offset by a $34-million increase in revenue
from Hydro-Québec Production's net electricity exports and by a $47-million
reduction in financial expenses. Cash flows from operating activities totaled
$3,230million as at September30, 2012.
In September 2012, following the decision to abandon the project to refurbish
Gentilly-2 nuclear generating station, Hydro-Québec posted a negative result
from discontinued operations that essentially stems from the accounting
treatment of the facility's definitive shutdown at the end of 2012. More
specifically, the abandonment of the refurbishment project and the imminent
shutdown of Gentilly-2 led to a write-off of $978million in property, plant
and equipment under construction and to the recognition of an asset impairment
charge of $827million, for a total of $1,805million. The result from
discontinued operations also includes a negative operating result of
$51million. It should be noted that this accounting treatment has no impact
on the cash flows from operating activities.
When the discontinued operations are factored in, the net result for the first
nine months of the year amounted to $265million in 2012, compared to
$2,237million in 2011.
Segmented results for the first three quarters
Hydro-Québec Production posted a result from continuing operations of
$1,208million, compared to $1,492million in 2011. This decrease is due to
a reduction in revenue from electricity sales to Hydro-Québec Distribution on
account of the mild temperatures in 2012 and of lower demand in Québec. In
addition, the net result from special contracts with certain large industrial
customers in Québec, assumed by Hydro-Québec Production, was lower than in
2011 because of aluminum prices and the exchange rate. The division also
purchased electricity from Rio Tinto Alcan. On the other hand, revenue from
net electricity exports increased with respect to last year.
Hydro-Québec TransÉnergie's result from continuing operations was
$478million, a $54-million increase over 2011.
Hydro-Québec Distribution recorded a result from continuing operations of
$346million, an increase of $80million over last year. Revenue from
electricity sales decreased, mainly on account of the mild temperatures in
2012 and lower demand, mostly in the industrial sector. This decrease was
offset by a positive change in the amounts that Hydro-Québec will be able to
recover from customers, primarily for revenue variances related to climate
conditions, as well as by a decrease in electricity purchases from
Hydro-Québec Production and a reduction in financial expenses.
In the Construction segment, work handled by Hydro-Québec Équipement et
services partagés totaled $1,429million, compared to $1,245million in
2011. Among other projects carried out for Hydro-Québec Production, the
division continued construction of the Romaine complex. Work done for
Hydro-Québec TransÉnergie included the ongoing project to connect Romaine-2
generating station, integrating output from wind farms as well as various
projects stemming from continued investment in asset sustainment, among other
things. As for the Société d'énergie de la Baie James, its volume of
activity amounted to $122million, compared to $244million last year. In
January 2012, the Eastmain-1-A/Sarcelle/Rupert project reached a major
milestone with the commissioning of the last generating unit at Eastmain-1-A
Hydro-Québec invested $2,627million in the first nine months of 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.
During the third quarter of 2012, Hydro-Québec issued $500million of
debentures on the Canadian market, bearing interest at 5.00% and maturing in
February 2050. This financing is in addition to the US$1,000million raised
in the first half of the year. The funds will be used to support part of the
investment program and to refinance maturing debt.
Ariane Connor, Media Relations Tel.: 514 289-5982
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