The estimate was first issued in September 2015, as an update to a $6.99-billion capital cost estimate from June 2014.
The latest financial report for Nalcor also refers to the business of Nalcor Oil and Gas, Churchill Falls and Newfoundland and Labrador Hydro.
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Overall, the whole of Nalcor Energy’s assets grew to $12.3 billion in 2015, up from $10.6 billion the year before.
Operating profit for the year came in at $42.5 million, with promises for exponential growth ahead, but also with a subsequent hit to Nalcor’s oil and gas assets, related to the dramatic change in oil prices.
“In a year when oil prices fell by almost 50 per cent, many oil and gas companies locally, nationally and internationally have been responding to the low oil price environment by taking a non-cash write down which is referred to as an impairment charge,” Nalcor Energy president and CEO Ed Martin said in a statement.
“We have made an accounting adjustment to reduce the current book value of the White Rose asset to respond to today’s market conditions; however, it remains a robust asset that has already realized a return on investment. Nalcor has already recovered more than its investment in the White Rose asset and it continues to project strong returns in the future.”
It was a $61.7-million adjustment against subsidiary Nalcor Oil and Gas assets.
The end result for Nalcor Energy was a $19.2-million loss on the year.
“Despite the challenges in 2015, Nalcor’s financial position is stable with a strong balance-sheet and debt-to-equity position,” Martin said.
“The company continues to be well positioned to provide long-term returns to the province as our full suite of income producing assets come on stream.”
As for Newfoundland and Labrador Hydro, it is being hurt in its wait for new power rates from the Public Utilities Board. Hydro spent $125 million on capital upgrades, but booked higher fuel costs and increased overall operating costs in 2015, compared to 2014.
The complete financial report is available on Nalcor Energy’s website.
Its annual general meeting is set for Thursday, March 24 at 1 p.m. at the Holiday Inn in St. John’s. The session is open to the public and will be webcast at nalcorenergy.com/agm/.
