First quarter 2008: Hydro-Québec posts net income of $1,450 million, up $19 million

MONTREAL, May 16 /CNW Telbec/ - Net income totaled $1,450 million for the first three months of 2008, compared to $1,431 million for the same period in 2007. The increase was the result of a rise in net electricity exports by Hydro-Québec Production and a $117-million price adjustment on the sale of the company's interest in Transelec (Chile).

Segmented results

Hydro-Québec Production posted net income of $840 million, compared to $907 million in the first quarter of 2007. Net electricity exports were up $37 million. Water-power royalties for the first quarter were $169 million, up $65 million over last year.

Hydro-Québec TransÉnergie's net income amounted to $131 million, up from $127 million in 2007, primarily as a result of an increase in revenue from point-to-point transmission services.

Hydro-Québec Distribution recorded net income of $362 million, down $31 million. This reduction was mainly due to a rise in amortization expense for regulatory assets and liabilities established in accordance with the decisions of the Régie de l'énergie.

The volume of activity of Hydro-Québec Équipement and Société d'énergie de la Baie James (SEBJ) totaled $345 million, as against $286 million in 2007. Major projects under way include the Eastmain-1A/ Sarcelle/Rupert hydroelectric development and the 1,250-MW interconnection with Ontario.

Investment

During the first quarter of 2008, Hydro-Québec's capital investments totaled $641 million, compared to $584 million for the same period in 2007. About 60% of this amount went toward the development projects of Hydro-Québec Production, Hydro-Québec TransÉnergie and Hydro-Québec Distribution.

Financing

The reopening of the bond offering maturing in February 2045 raised $503 million on the Canadian market at a rate of 4.96%.

Contacts

Hydro-Québec - Media Relations: Flavie Côté
Press Officer
(514) 289-2220
Cote.Flavie@hydro.qc.ca

Press room: http://www.hydroquebec.com/media