Financial Highlights

In 2010, despite well-below-average runoff, Hydro-Québec recorded net income of $2,515 million—exceeding the projection in its Strategic Plan 2009–2013 by $115 million. This strong performance will allow us to pay our sole shareholder, the Québec government, a dividend of $1,886 million.
Because the precipitation that fills our reservoirs was well below the historical mean, we cut back our net exports in the latter half of the year. Nonetheless, net exports, which accounted for 7% of our net sales volume, generated 17% of net income for the year.
As a result of careful control over our energy market transactions and risks, the unit contribution of our exports rose to 8.2¢ per kWh in 2010, compared with 6.8¢ per kWh in 2009.
Efficiency gains enabled the company to absorb annual indexation and inflation of our operating expenses as well as additional expenses associated with growth in operations.
The recovery of the industrial sector in Québec, particularly in pulp and paper and smelting and refining, meant that income was higher than projected.
Under our ongoing capital program, we invested nearly $4.2 billion in the expansion, reliability and long-term operability of our generating, transmission and distribution facilities.

Consolidated Financial Data¹

In millions of Canadian dollars	2010 Twelve months ended December 31	2009 Twelve months ended December 31	2008 Twelve months ended December 31

OPERATIONS
Revenue	12,338	12,333	12,716
Expenditure
Operations	2,581	2,527	2,503
Electricity and fuel purchases	1,390	1,207	1,406
Depreciation and amortization	2,605	2,372	2,457
Taxes	909	928	1,093
Regulatory deferrals	(188)	30	(72)
	7,297	7,064	7,387
Operating income	5,041	5,269	5,329
Financial expenses	2,526	2,398	2,443
Income from continuing operations	2,515	2,871	2,886
Income from discontinued operations	-	-	129
Restated net income*	-	2,871	3,015
Reported net income	2,515	3,035	3,141
DIVIDEND	1,886	2,168	2,252
Balance sheet summary
Reported total assets	65,898	68,978	66,789
Restated total assets*	-	64,992	62,968
Long-term debt, including current portion and perpetual debt	38,660	37,943	36,415
Reported equity	18,566	22,395	22,062
Restated equity*	-	18,419	18,250
Investments for continuing operations affecting cash
Property, plant and equipment and intangible assets	4,004	4,050	3,717
Costs related to Energy Efficiency Plan	216	257	236
Total investments	4,220	4,307	3,953

1. Certain comparative data have been reclassified to reflect the presentation adopted for the current year.

*The comparative data include adjustments relating to continuing operations that stem mainly from the change in the accounting policy regarding the depreciation method for property, plant and equipment. This change is described in Note 2 to the consolidated financial statements in Hydro-Québec's Annual Report 2010.

Source: Hydro-Québec.

Financial Highlights

Consolidated Financial Data1

Consolidated Financial Data¹