Hydro-Québec posted net income of $2,238 million for the first nine months of 2011, a $196‑million increase compared to the same period last year. This rise is due to a $70‑million decrease in operating expenses and to an $82‑million increase in electricity sales in Québec as a result of higher demand.

Third-quarter results

In the third quarter of 2011, net income amounted to $384 million, or $157 million more than in 2010. This increase stems partly from growth in net electricity exports. In addition, the granting of sublicences for the manufacture of rechargeable battery materials generated $22 million, and operating expenses were down $25 million.

Segmented results for the first three quarters

Hydro-Québec Production recorded net income of $1,459 million, a $52-million increase over 2010. The growth in net electricity exports was offset by the impact of the appreciation of the Canadian dollar. Revenue from electricity sales to Hydro-Québec Distribution increased by $169 million.

Hydro-Québec TransÉnergie’s net income amounted to $424 million, up $28 million from 2010.

Hydro-Québec Distribution posted net income of $266 million, a $28-million increase over last year. Revenue from electricity sales rose due to colder temperatures in 2011 and to higher demand, mainly from residential customers. This increase was partly offset by higher electricity purchases, and by the recognition, in 2010, of a regulatory asset for revenue variances related to climate conditions.

In the Construction segment, work handled by Hydro-Québec Équipement et services partagés totaled $1,245 million in the first nine months of 2011, compared to $1,352 million in 2010. Large-scale projects under way for Hydro-Québec Production include Romaine‑2, while work in progress for Hydro-Québec TransÉnergie revolves around connecting new generating facilities and continued investment in asset sustainment projects, among other things. The volume of activity of Société d’énergie de la Baie James amounted to $244 million, compared to $549 million last year. The Eastmain-1-A/Sarcelle/Rupert project reached an important milestone in June 2011 with the commissioning of the first generating unit at Eastmain-1-A powerhouse.

Investment

At September 30, 2011, investments totaled $2,619 million. As planned, a large portion of this amount was devoted to the company’s growth and development projects as well as to asset maintenance and improvement.

Financing

In September 2011, bonds maturing in February 2050 were issued on the Canadian market at the rate of 3.89%. This financing raised $0.6 billion, adding to the $3.5 billion raised in the first half of the year. The funds are being used to support the investment program and refinance maturing debt.