Nalcor Energy released its 2018 third quarter financial reports Friday morning.
The crown corporation saw net profits for the nine-month period ending Sept. 30 decrease $29 million compared to the same period in 2017. Nalcor says the decline — $128 million from $157 — is due to lower earnings for Hydro regulated due to the timing of the General Rate Application orders; lower revenues from Bull Arm Fabrication as a result of the 2017 close-out of the Exxon Mobil Canada Properties sublease; and higher exploration, evaluation and depletion expense.
Those drivers also played a part in funds from operations year-to-date decreasing by $15 million year-over-year. Funds from operations year-to-date are $269 million, compared to $284 million in 2017.
Year-to-date capital expenditures — once again not including the Maritime link — fell over a billion dollars from $2,163 million in the same period in 2017 to $1,134 million this year. Nalcor attributes the drop to reduced capital incurred on the Lower Churchill Project for transmission and at the Muskrat Falls generation site, completion of new island transmission assets in 2017 in Hydro regulated, a reduction in oil and gas due to a change in Hibernia South Extension’s drilling schedule as well as Hebron entering the production phase in late 2017.
Total liabilities of $18.4 billion and equity of $5.2 billion on Sept. 30 are comparable to $18.0 billion on Dec. 31, 2017. Debt to capital for the quarter is 66 per cent, also on par with the end of year figured reported in 2017.
President and CEO Stan Marshall stated in a release that the results continue to be sound.
“Managing the company’s $18 billion in assets, while advancing the Muskrat Falls Project, is no small feat. It requires the commitment and focus of each and every employee,” Marshall stated.
“We continue to advance the Muskrat Falls Project while keeping costs steady, and at the same time, Hydro is preparing for the coming winter to reliably serve customers as we know they are relying on us.”
The report and a recording of Nalcor’s webcast are available at nalcorenergy.com
Twitter: @stjohnstelegram
