Despite a difficult context, the last few months have enabled Hydro-Québec to limit the damage. In the third quarter, the state-owned company managed to maintain its profits at the level of last year, despite a general decline in consumption and exports.
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In the most recent quarter, ending September 30, Hydro-Québec’s net income stood at $ 203 million. This is almost identical to the $ 205 million recorded at the same date last year.
That said, the Covid-19 crisis continues to weigh heavily on its financial performance. Hydro-Quebec therefore ended the first three quarters with a drop of 435M4 in its net profit compared to that of the corresponding period of 2019.
“We are monitoring the situation very closely and we are continuing to develop initiatives aimed at mitigating the impact of the pandemic on the Quebec economy and on our results,” commented this morning the Executive Vice-President and Chief Financial Officer of Hydro-Québec, Jean-Hugues Lafleur.
In the Quebec market, net electricity sales fell by $ 107 million compared to those of the first three quarters of 2019. The impact of temperatures, which were milder in winter 2020 than in the previous winter, resulted in a decline of $ 257 million in electricity sales.
However, basic demand increased by $ 26 million despite the decline observed in some sectors following the closure of a large number of businesses and businesses for several weeks in the spring.
In fact, this decline was offset by the increase in consumption in the residential sector and in the aluminum smelters, itself attributable to the gradual resumption of activities in a major production plant in the summer of 2019, after a long work conflict.
Finally, external purchases of electricity and fuel related to distribution activities decreased by $ 62 million, mainly due to lower production from contracted wind facilities.
On markets outside Quebec, Hydro-Québec Production’s net electricity exports fell by $ 151 million to $ 1,004 million. This decline is attributable to the effect of temperatures in the first quarter, as well as the impact of the global pandemic.
More details will follow.