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Hydro-Québec records net profit of $1.8 billion in H1 2024, down from 2023

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Hydro-Québec records net profit of $1.8 billion in H1 2024, down from 2023
(photo courtesy Hydro-Quebec)

Hydro-Québec posted net income of $1,845 million for the first six months of 2024, down from $2,687 million for the same period in 2023, when average prices obtained on export markets reached unprecedented levels.

“These results are in line with what was expected, given our strategy of prudent energy inventory management required due to the low water cycle. This resulted in a decrease in our electricity sales on external markets compared to the same period in 2023,” said Maxime Aucoin, executive vice president – ​​strategy and finance. “In the first half of 2024, we observed water levels approaching historical averages across the territory. We will monitor the situation closely and continue to exercise caution.”

Among its half-year financial highlights, Hydro-Québec cited that its investments in tangible and intangible assets was up by almost 30% compared to last year, with more than $2.6 billion invested in six months and allocation of more than half of the sums to the sustainability of production, transport and distribution assets to ensure quality service. The utility completed financing activities to raise $2.9 billion in the first half of the year.

Hydro-Québec reported a $919 million drop in sales outside Quebec, due in particular to a 50% drop in volume compared to last year. There was a favorable impact from the electricity price hedging strategy, but less significant than in 2023. The average price obtained (including the effect of hedging) was 9.4¢/kWh, compared to the average price of 6.4¢/kWh on the markets.

The utility said there was continued growth in demand for electricity, due in particular to the increase in the number of subscriptions, especially in the residential and commercial sectors. A drop in electricity consumption was caused by mild temperatures in the first quarter of 2024, which was the mildest in the past 10 years. And Hydro-Québec had an increase in products resulting from tariff indexations, which came into force on April 1, 2023 and 2024.

Hydro-Québec generates, transmits and distributes electricity. It is Canada’s largest electricity producer and one of the largest hydroelectric producers in the world, sourcing most of its electricity supply from hydroelectric generating stations. Its sole shareholder is the Quebec government.