Hydro‑Québec’s net income exceeds $2 billion for the first six months
Hydro‑Québec posted net income of $2,038 million for the first six months of 2019, compared to $2,267 million a year earlier. Excluding the non-recurring gain of $277 million on the sale of an equity interest in subsidiary TM4 in June 2018, net income increased by $48 million over the first half of 2018.
On markets outside Québec, Hydro‑Québec Production’s net electricity exports surpassed 16 TWh, but declined by $30 million compared to the first half of 2018, primarily because demand was lower on export markets during the second quarter as a result of temperature variances. The impact of the volume decrease was mitigated by an increase in the average price obtained, mainly on account of the positive impact of the company’s risk management strategy.
On the Québec market, electricity supplies provided by Hydro‑Québec Production to Hydro Québec Distribution rose by $119 million compared to the first six months in 2018. This growth is due to a higher volume of electricity sales, particularly in the first quarter.
Highlights for the first six months
Markets outside Québec
Export volume exceeded 16 TWh for a third consecutive year
Increase in the average export price obtained (4.9¢/kWh)
Higher baseload demand (excluding the impact of temperatures) across all customer segments
Temperatures colder in winter 2019 than in the previous winter
Decrease of $18 million compared to the first half of 2018
Careful management made it possible to completely absorb the higher costs related to inflation and salary indexing
Completion of the 735-kV Chamouchouane−Bout-de-l’Île project
Commissioning of most of the facilities during the second quarter of 2019
One of Hydro‑Québec’s largest jobsites of the past decade, completed under budget
Infrastructure will help meet growing demand in southern Québec while ensuring the reliability of the entire grid
Two fixed-rate bond issues maturing in 2055 during the second quarter, at an average cost of 2.68%, for proceeds of $1.3 billion
Total amount raised since the beginning of the year: $1.9 billion