-- Result from continuing operations: $2,736 million -- Taxes and royalties paid: $997 million -- Investments: $3.9 billion MONTREAL, March 28, 2013 /CNW Telbec/ - Hydro-Québec's result from continuing operations totaled $2,736million in 2012, a $50-million increase over 2011. These earnings exceed the Strategic Plan 2009-2013 target. "We posted a solid performance in 2012," commented Thierry Vandal, Hydro-Québec's President and Chief Executive Officer. "The result from these operations increased over 2011. This performance, which can be credited to the commitment of all our employees, is all the more satisfying given the difficult business conditions we faced this past year." Consolidated results The increase in the result from continuing operations is due in part to net electricity exports, which amounted to $1,233million, a $99-million increase over the $1,134million recorded in 2011. However, revenue from electricity sales in Québec decreased because of a $109-million reduction in demand from industrial customers, partly offset by a $72-million increase in residential demand. The net result from special contracts with certain large industrial customers in Québec decreased by $145million because of aluminum prices and the exchange rate. Added to this were electricity purchases of $148million from Rio Tinto Alcan, notably because of a labor conflict at one of that company's large aluminum smelters in 2012. The company also recorded amounts payable to the Québec government, namely $49million under the Act to establish the Northern Plan Fund and $37million under the Act respecting Energy Efficiency and Innovation. On the other hand, operating expenses decreased by $54 million, and depreciation and amortization expense and financial expenses, by $275 million. In 2012, Hydro-Québec posted a $1.9-billion negative result from discontinued operations due to the accounting treatment of the definitive shutdown of Gentilly-2 nuclear generating station at the end of the year. It should be noted that this accounting treatment had no impact on the cash flows from operating activities for the year. When the discontinued operations are factored in, the net result totaled $860million in 2012. Segmented results Hydro-Québec Production posted a result from continuing operations of $1,541million in 2012, compared to $1,765million in 2011. While net electricity exports increased over the previous year, electricity sales to Hydro-Québec Distribution decreased over 2011, mainly on account of the mild temperatures in 2012. The net result from special contracts with certain large industrial customers in Québec decreased, affected by aluminum prices and the exchange rate. Added to this were electricity purchases from Rio Tinto Alcan, notably because of a labor conflict at one of that company's aluminum smelters in 2012. In addition, there was an increase in water-power royalties, and the division recorded an amount payable to the Québec government under the Act to establish the Northern Plan Fund. These negative items were partly offset by a decrease in depreciation and amortization expense. Hydro-Québec TransÉnergie's result from continuing operations was $581million, compared to $429million in 2011. This $152-million increase was partly due to variances in revenue from point-to-point transmission services. In addition, depreciation and amortization expense and financial expenses decreased. Hydro-Québec Distribution posted a result from continuing operations of $503million in 2012, an increase of $129million over 2011. Revenue from electricity sales decreased, mainly due to the mild temperatures in 2012 and lower demand from industrial customers, which was partly offset by higher demand from residential customers. The decrease in revenue from electricity sales was mitigated by revenue variances related to climate conditions and variances in the annual cost of native-load transmission service, among other things. Transmission costs increased, and the division recorded an amount payable to the Québec government under the Act respecting Energy Efficiency and Innovation. These negative items were more than offset by reductions in depreciation and amortization expense and financial expenses. In the Construction segment, the volume of activity of Hydro-Québec Équipement et services partagés and Société d'énergie de la Baie James totaled $2,295million in 2012, compared to $2,122million in 2011. Among the projects carried out for Hydro-Québec Production, the division continued construction of the Romaine complex and Sarcelle powerhouse while conducting refurbishment work at several facilities. Projects handled for Hydro-Québec TransÉnergie included connecting the Romaine complex, integrating wind farm output and various projects related to asset sustainment. Investments Hydro-Québec invested $3.9billion in 2012. As expected, a large portion of this amount was devoted to the company's development and growth projects as well as to maintenance and improvement activities. Financing In 2012, Hydro-Québec's financing activities raised $2.3billion on the Canadian and global markets. The proceeds were used to support part of the investment program and to refinance maturing debt. For more information on Hydro-Québec's 2012 financial statements, visit www.hydroquebec.com/ar. Ariane Connor, Media Relations Tel.: 514 289-5982 E-mail:firstname.lastname@example.org SOURCE: HYDRO-QUEBEC To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/March2013/28/c9056.html CO: HYDRO-QUEBEC ST: Quebec NI: UTI ERN FIN -0- Mar/28/2013 14:36 GMT
Hydro-Québec Records a Solid Performance in 2012
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