Hydro-Québec posts stable net result for the second quarter
For the second quarter of 2014, Hydro-Québec posted a net result of $467 million, comparable to the $464 million recorded in 2013. For the six months ended June 30, 2014, the company's net result totaled $2,230 million, or $406 million more than the $1,824 million posted last year. This increase is due to the very cold temperatures in winter 2014, which led to growth in Hydro-Québec Production's net electricity exports as well as in the Québec market's contribution.
Segmented operations for the first six months
Hydro-Québec Production recorded a net result of $1,462 million, compared to $1,131 million in 2013. This $331 million increase is due to the very cold temperatures in winter 2014. Net electricity exports generated $222 million more than last year as a result of more favorable market conditions. The Québec market's contribution increased by $157 million, mainly because of the additional peak supplies provided by Hydro-Québec Production to Hydro-Québec Distribution.
Hydro-Québec TransÉnergie's net result amounted to $335 million, a $43 million increase over 2013 that is due, among other things, to a $32 million increase in revenue from native-load transmission service following a decision handed down by the Régie de l'énergie.
Hydro-Québec Distribution posted a net result of $356 million, compared to $388 million in 2013. Revenue from electricity sales increased by $480 million due to the very cold temperatures in winter 2014 and the April 1, 2013 and 2014 rate adjustments. Other revenue also increased, mainly on account of the amounts due to Hydro-Québec for the additional supply costs incurred in winter 2014. Net electricity purchases and the related transmission costs rose by $591 million, primarily because of temperatures. Supplies from third parties thus increased by $330 million due to wind power purchases and ad hoc winter requirements, while supplies from Hydro-Québec Production increased by $248 million.
In the Construction segment, the volume of activity at Hydro-Québec Équipement et services partagés and Société d'énergie de la Baie James totaled $1,017 million, compared to $1,060 million in 2013. Projects under way for Hydro-Québec Production include ongoing construction of the Romaine complex. Work in progress for Hydro-Québec TransÉnergie includes expansion of the transmission system in the Minganie region, the addition of a 735/315 kV section and related work at Bout de l'Île substation as well as various projects stemming from continued investment in asset sustainment.
In the first six months of 2014, Hydro-Québec invested $1,701 million in property, plant and equipment and intangible assets, compared to $1,802 million in 2013. As expected, a large portion of this amount was devoted to the company's growth and development projects as well as to maintenance and improvement activities.