Nalcor got only $40M from province over past year

Rob Antle
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Energy Initial projected investment had been tagged at $228M

Newfoundland and Labrador's Crown-owned energy corporation received only $40 million from the provincial treasury this past fiscal year.

The province had originally budgeted a $228-million contribution for Nalcor Energy in 2009-10.

The cash allows Nalcor to "facilitate its participation in oil and gas activities and other energy projects," according to the province's 2010 financial estimates.

Newfoundland and Labrador's Crown-owned energy corporation received only $40 million from the provincial treasury this past fiscal year.

The province had originally budgeted a $228-million contribution for Nalcor Energy in 2009-10.

The cash allows Nalcor to "facilitate its participation in oil and gas activities and other energy projects," according to the province's 2010 financial estimates.

Information on the past year's contribution to the energy company is contained in the same set of documents. The reasons for the big drop are not clear.

Nalcor officials were not available to answer Telegram questions on the topic this week.

Then-finance minister Jerome Kennedy said last spring the planned $228-million investment would enable the provincially-owned firm "to take full advantage of the opportunities before us."

Nalcor is the government's vehicle to become a player in energy projects.

Over the past year, deals were announced for Nalcor to pick up a 10 per cent interest in most of the Hibernia South field for $30 million.

Nalcor also began drilling at Parsons Pond on Newfoundland's west coast. Its share of the costs for that project were slated to come in at $14 million.

Previously, Nalcor acquired a 4.9 per cent equity stake in Hebron and a five per cent share of the White Rose expansion. As an equity partner, Nalcor will pay its share of development costs for energy projects, and later receive its share of the profits.

The company is also working to make the potential Lower Chur-chill hydro project a reality.

In 2008-09, the province funnelled the full planned allotment of $319.5 million into Nalcor.

In the coming year, according to government estimates, the company is budgeted to receive $164 million from the treasury.

rantle@thetelegram.com

Organizations: Nalcor Energy

Geographic location: Newfoundland and Labrador, Hibernia South, Hebron White Rose

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  • AJP
    July 02, 2010 - 13:24

    Slated implies budgeted. Actual expenses could be less depending on the status of projects.

    A $30 million deal could also include earn-outs of $4 million resulting in commitments/expenses of only $26 million in the year.

    Rather than judge and deem the items creative accounting head to the CICA handbook and read about accounting for liabilities. Booking budgets/estimates as transactions brought us Enron.

  • Paul
    July 02, 2010 - 13:23

    Nate. Maybe the Telegram can't add or if read correctly you would note that there share of costs for Parsons Pond were slated to come in at $14M. Doesn't mean they did, and thus they probably just got $40M as yet.

  • Nasty
    July 02, 2010 - 13:22

    Over the past year, deals were announced for Nalcor to pick up a 10 per cent interest in most of the Hibernia South field for $30 million.

    Nalcor also began drilling at Parsons Pond on Newfoundland's west coast. Its share of the costs for that project were slated to come in at $14 million.


    Umm, does that not add up to $44 Million and not 40? A million here a million there. No wonder we are back in the RED. Way to go Danny, keep that creative accounting going. You have the wool pulled over the eyes of 99% of your followers.

  • AJP
    July 01, 2010 - 20:10

    Slated implies budgeted. Actual expenses could be less depending on the status of projects.

    A $30 million deal could also include earn-outs of $4 million resulting in commitments/expenses of only $26 million in the year.

    Rather than judge and deem the items creative accounting head to the CICA handbook and read about accounting for liabilities. Booking budgets/estimates as transactions brought us Enron.

  • Paul
    July 01, 2010 - 20:08

    Nate. Maybe the Telegram can't add or if read correctly you would note that there share of costs for Parsons Pond were slated to come in at $14M. Doesn't mean they did, and thus they probably just got $40M as yet.

  • Nasty
    July 01, 2010 - 20:07

    Over the past year, deals were announced for Nalcor to pick up a 10 per cent interest in most of the Hibernia South field for $30 million.

    Nalcor also began drilling at Parsons Pond on Newfoundland's west coast. Its share of the costs for that project were slated to come in at $14 million.


    Umm, does that not add up to $44 Million and not 40? A million here a million there. No wonder we are back in the RED. Way to go Danny, keep that creative accounting going. You have the wool pulled over the eyes of 99% of your followers.