Hydro-Quebec posts income of $3.04 billion

CanWest News Service
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Montreal -

Hydro-Quebec earned income of $3.04 billion in 2009 despite strong recessionary headwinds that included less revenue from industrial sales in Quebec and a higher Canadian dollar.
"This is an historic summit for the enterprise," chief executive officer Thierry Vandal told a Montreal Board of Trade luncheon Thursday. "We are very proud of this result."
Active risk management in the form of financial hedges for exchange rates, aluminum prices and energy prices helped offset a drop in industrial sales in Quebec and revenue from exports, Vandal said.
"We have always done (hedging), and it certainly shows results in a year where you get major market movement," he said in an interview.
Hedging added about $600 million to the utility's bottom line.
Net income was $106 million lower than the $3.14 billion posted in 2008 because results for that year were inflated by gains from a price adjustment related to the 2006 sale of the utility's Chilean assets. Income from continuing operations in 2008 was $3.01 billion.
Revenue from 2009 electricity sales in Quebec increased by $104 million from 2008 to $10.55 billion mainly because of rate hikes. Revenue from large industrial customers dropped in part because of lower aluminum prices. Special industrial rates are linked to aluminum prices.
Revenue from outside Quebec in 2009 totalled $1.51 billion compared to $1.92 billion in 2008, mainly because of a drop in prices charged outside the province. In 2009, outside sales accounted for 10 per cent of Hydro-Quebec's sales but 22 per cent of its revenue. In 2008, about 32 per cent of the utility's revenues were from external sales, which then made up eight per cent of its sales.
Hydro-Quebec paid its sole shareholder, the Quebec government, a dividend of almost $2.17 billion.

Organizations: Hydro-Quebec, Montreal Board of Trade

Geographic location: Quebec, Montreal

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Recent comments

  • Gerry
    July 02, 2010 - 13:34

    How the hell is it that Hydro-Que posts such a friggin' great profit, & can offer friggin' BILLIONS to buy NB Power assets but the Que government wants more freakin' taxes on gas, a yearly health 'contribution' on every adult that stars off $200 yearly (& keeps going up for the next +2years) & wants more taxes on everything from bottled water to a G-D snickers bar because they can't afford health care & other social programs??
    ...thank Christ I'm leaving this summer.

  • Sounding
    July 02, 2010 - 13:34

    Should the headline of this story read:

    Hydro Quebec earned $2 billion income and GIFTED $1 billion from NL.

  • Bayman
    July 02, 2010 - 13:30

    Sickening. How much of that came from Churchill?

  • Lab12
    July 02, 2010 - 13:27

    Try Labrador. The Island gets nothing if it fails to provide anything in return. The Flag of Labrador will fly high again soon enough.

  • Jack
    July 02, 2010 - 13:23

    Lab 12 I have seen you post on many sites with your pro Labrador rhetoric what do you expect out of it to be king or are you trying to be the prime minister?

  • Steve
    July 02, 2010 - 13:18

    Hedging - that must be terminology they came up with immediately after they signed the Churchill Falls agreement ?

    Maybe we should encourage Quebec to separate, according to Mr.Duceppe it Quebec would work more co-operatively with Newfoundland and Labrador.

    I am sure we could trust a new separate Quebec to look after the best interests of Newfoundland and Labrador.

  • Gerry
    July 01, 2010 - 20:23

    How the hell is it that Hydro-Que posts such a friggin' great profit, & can offer friggin' BILLIONS to buy NB Power assets but the Que government wants more freakin' taxes on gas, a yearly health 'contribution' on every adult that stars off $200 yearly (& keeps going up for the next +2years) & wants more taxes on everything from bottled water to a G-D snickers bar because they can't afford health care & other social programs??
    ...thank Christ I'm leaving this summer.

  • Sounding
    July 01, 2010 - 20:23

    Should the headline of this story read:

    Hydro Quebec earned $2 billion income and GIFTED $1 billion from NL.

  • Bayman
    July 01, 2010 - 20:18

    Sickening. How much of that came from Churchill?

  • Lab12
    July 01, 2010 - 20:15

    Try Labrador. The Island gets nothing if it fails to provide anything in return. The Flag of Labrador will fly high again soon enough.

  • Jack
    July 01, 2010 - 20:08

    Lab 12 I have seen you post on many sites with your pro Labrador rhetoric what do you expect out of it to be king or are you trying to be the prime minister?

  • Steve
    July 01, 2010 - 19:59

    Hedging - that must be terminology they came up with immediately after they signed the Churchill Falls agreement ?

    Maybe we should encourage Quebec to separate, according to Mr.Duceppe it Quebec would work more co-operatively with Newfoundland and Labrador.

    I am sure we could trust a new separate Quebec to look after the best interests of Newfoundland and Labrador.