Record earnings of $2.06 billion at Hydro-Québec in Q1 2022

Hydro-Québec posted record profits of $2.06 billion in the first quarter of 2022, thanks to historic electricity consumption and a hike in energy prices driven by the war in Ukraine.

This is the first time in its history that Quebecers’ electric utility has raised more than $2 billion in three months.

“We start the year with a remarkable financial performance, in a context of cold temperatures and a sharp increase in prices in our export markets,” said Jean-Hugues Lafleur, Vice President and Chief Financial Officer.

Between January and March, Hydro-Québec reported a US$421 million increase in net income year-over-year. The company explains this increase by an increase in sales in Quebec and outside the province.

Exports and Aluminum

The fluctuations in aluminum prices and the increase in electricity prices on the export markets were also profitable. This situation should continue for the next few weeks.

“It is sad to say, but the effects of the war in Ukraine are having a beneficial effect on the energy complex with rising prices. This is unfortunate, but we are benefiting from it,” said Mr. Lafleur when announcing the results.

In the first three months of the year, electricity sales in Quebec reached $4.39 billion, up $546 million.

Hydro-Québec benefited in particular from colder temperatures last winter when consumption records were set. Mother Nature has allowed the state-owned company to raise $311 million more than it did in 2021.

However, to meet demand, the utility had to buy more energy from external markets. The financial impact was $900 million, or $269 million more than a year earlier.

On sales outside of Quebec, they brought in $646 million, up 21.6%, despite a decline in purchase volume. The average selling price reached 7.4¢/kWh, compared to 5.1¢/kWh in the first quarter of 2021.

Hydro-Québec also injected $856 million into its infrastructure between January and March. Recently, CEO Sophie Brochu said her organization plans to invest $5 billion per year to support the energy transition and modernize existing systems.

The Romaine-4 should enter service by the end of the year.

1ah Last April, Hydro-Québec increased tariffs for residential and commercial customers by 2.6%. The impact will be seen in the second fiscal quarter results.

quarter Dream for Hydro Quebec

  • Profits in the first quarter of 2022: $2.06 billion
  • Prizes for the whole year 2021: $3.56 billion

Source: Hydro Quebec

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