It’s not just oil companies that are benefiting from soaring global energy prices; Quebecers also benefit indirectly from it through Hydro-Québec.
The state-owned company’s third quarter results show a dramatic jump in Hydro’s net income, which reached $3.604 billion since the start of 2022, an increase of more than 47.6% compared to the previous year. net profit of 2.441 billion for the first three quarters of 2021.
Already, in nine months, Hydro-Québec has exceeded the record net profit of 3.546 billion that it had posted for the full year 2021.
For the period from July to September alone, ie the third quarter itself, net income almost doubled, rising from 448 million to 862 million, in particular due to a 508 million increase in sales outside Quebec. For the first nine months, this increase is 891 million.
Price inflation in the market
This result is largely explained by the inflation of prices on the export markets. Year-to-date, Hydro has averaged 7.6 cents per kWh, up more than 70% from the 4.4 cents per kWh achieved in the first nine months of 2021.
Of course, Hydro-Québec itself is feeling the impact of soaring energy prices. In other words, its own result, as spectacular as it is, could have been even higher if its electricity purchases had not cost it 131 million more in the third quarter, for a total increase of 496 million since the start of 2022.
Exports alone do not explain the increase in the Crown corporation’s net income. The very cold temperatures of last winter and the growth in domestic demand also led to an increase of 848 million in sales in Quebec, which have reached 8.985 billion since the start of the year.
On the other hand, the major blackouts, especially those caused by the derecho last spring, left a bill of 75 million in Hydro’s hands.
In other third quarter highlights, Hydro management is pleased with the completion of the Romaine complex and the commissioning of the second and last turbine-generator unit at Romaine-4 generating station in September 2022 .