First three quarters of 2013: Hydro-Québec posts net result of $2,136 million MONTREAL, Nov. 15, 2013 /CNW Telbec/ - For the nine months ended September30, 2013, Hydro-Québec posted a result from continuing operations of $2,123million, compared to $2,121million for the same period last year. Net electricity exports increased by $147million, whereas electricity purchases from Rio Tinto Alcan decreased by $105million. The deferred implementation of Hydro-Québec Distribution's rate adjustment, i.e., the difference between the April1 effective date of the rate adjustment and the recording of additional costs as of January1, whose effect was amplified in 2013, had a negative impact of $91million. A downward adjustment of $38million related to Hydro-Québec TransÉnergie's 2013 rate case was also a factor. In addition, water-power royalties increased by $39 million over last year. When the discontinued operations are factored in, the net result for the first nine months of the year amounted to $2,136million in 2013, compared to $265million in 2012. Consolidated operations for the third quarter For the third quarter of 2013, Hydro-Québec's result from continuing operations was $319million, compared to $376million in 2012. Net electricity exports by Hydro-Québec Production increased slightly over the same period in 2012. However, this increase was offset by adjustments related to the regulated activities of Hydro-Québec TransÉnergie and Hydro-Québec Distribution. Segmented operations for the first three quarters Hydro-Québec Production posted a result from continuing operations of $1,414million, compared to $1,208million in 2012. This $206-million increase is mainly due to growth of $147million in net electricity exports. In addition, electricity purchases from Rio Tinto Alcan decreased by $105million. These factors were mitigated by a $39-million increase in water-power royalties. Hydro-Québec TransÉnergie's result from continuing operations was $416million, a $60-million decrease from 2012 that is due, among other things, to an adjustment related to the division's 2013 rate case and to variances in revenue from point-to-point transmission services. Hydro-Québec Distribution posted a result from continuing operations of $231million, compared to $346million in 2012. Revenue from electricity sales increased by $317million on account of three main factors: temperatures that were close to normal in 2013, whereas they had been milder in 2012; higher demand, primarily in the residential sector; and the rate adjustments of April1, 2012 and 2013. Other revenue decreased, partly because of revenue variances related to climate conditions given the mild temperatures in 2012. Electricity purchases increased by $261million, mainly because of additional supplies from independent power producers. Moreover, depreciation and amortization expense increased by $40million compared to 2012. In the Construction segment, the volume of activity at Hydro-Québec Équipement et services partagés and Société d'énergie de la Baie James totaled $1,756million, compared to $1,551million in 2012. Projects under way for Hydro-Québec Production include ongoing construction at the Romaine jobsites. Work in progress for Hydro-Québec TransÉnergie includes expansion of the transmission system in the Minganie region, the addition of a 735/315-kV section and related work at Bout-de-l'Île substation as well as various projects stemming from continued investment in asset sustainment. Investment Hydro-Québec invested $2,920million during the first nine months of 2013, compared to $2,627million in 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. Financing During the third quarter of 2013, Hydro-Québec borrowed $1.6billion on the Canadian market. In July, it issued debentures due February 2050 with a yield of 3.95%, which enabled it to raise $0.6billion. Then, in September, the company issued variable-rate notes for a total amount of $1.0billion, maturing in September 2018. The funds will be used to support part of the investment program and to refinance maturing debt. SOURCE Hydro-Québec Danielle Chabot Media Relations Tel.: 514 289-3173 E-mail:firstname.lastname@example.org Newsroom:http://news.hydroquebec.com/en/ To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/November2013/15/c7956.html CO: Hydro-Québec ST: Quebec NI: UTI ERN -0- Nov/15/2013 16:08 GMT
First three quarters of 2013: Hydro-Québec posts net result of $2,136 million
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