-- 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."
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.
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
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.
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.
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
Ariane Connor, Media Relations Tel.: 514 289-5982
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-0- Mar/28/2013 14:36 GMT
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