For the first six months of 2009, income from continuing operations totaled $1,842 million, compared to $2,049 million for the same period of 2008. The difference is mainly due to the recognition, in June 2008, of a $129-million regulatory asset for revenue variances related to weather conditions in 2006 and 2007, as well as to the business environment in 2009.

It may be recalled that a non-recurring gain of $121 million related to the price adjustment provided for in the contract for the sale of the company’s interest in Transelec, in Chile, had been recognized in 2008 under discontinued operations. Net income for the first six months therefore amounted to $1,842 million, compared to $2,171 million in 2008. For the second quarter of 2009, net income totaled $435 million, compared to $721 million in 2008.

“Given the recessionary business environment and taking into account certain non-recurring items from 2008, Hydro-Québec continues to maintain good results,” said Lise Croteau, Vice President, Accounting and Control at Hydro-Québec.

Segmented results for the first six months

Hydro-Québec Distribution recorded net income of $304 million, compared to $455 million in 2008. This decrease is mainly due to the recognition, in June 2008, of a $129-million regulatory asset for revenue variances related to weather conditions in 2006 and 2007, and an increase in bad debt.

Hydro-Québec TransÉnergie’s net income amounted to $232 million, which is comparable to the $247 million recorded in 2008.

Hydro-Québec Production posted net income of $1,306 million, which is comparable to the previous year’s amount of $1,343 million. Revenue from net electricity exports decreased due to colder temperatures in Québec during the first quarter of 2009 and to a drop in energy market prices. An additional loss was recorded on special contracts with large industrial customers in Québec, due to a decline in aluminum prices. These factors were offset by the positive effect of hedging aluminum prices as well as to decreases in transmission system reservation expenses, amortization expense and capital tax.

The volume of activity at Hydro-Québec Équipement and Société d’énergie de la Baie James totaled $1,044 million, compared to $916 million in 2008. Major projects under way include Eastmain-1-A/Sarcelle/Rupert, the 1,250‑MW interconnection with Ontario and the start of work on the Romaine project.

Investment

During the first half of 2009, Hydro-Québec’s investments totaled $1,730 million, compared to $1,567 million for the same period in 2008. Most of this amount was devoted to growth and development projects and to the continued implementation of the Energy Efficiency Plan.

Financing

In June 2009, Hydro-Québec issued variable-rate notes and raised $1 billion, bringing the total amount of borrowings since the beginning of the year to $2 billion, all completed on the Canadian market.