Hydro-Québec Records a Solid Performance in 2012


    --  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:connor.ariane@hydro.qc.ca 

SOURCE: HYDRO-QUEBEC

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CO: HYDRO-QUEBEC
ST: Quebec
NI: UTI ERN FIN 

-0- Mar/28/2013 14:36 GMT


 
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