Hydro-Québec will pay a billion dollars less in dividends to the government this year than last year.
“The company faced low hydraulicity, a drop in prices on the energy markets as well as milder temperatures in Quebec,” explained Maxime Aucoin, executive vice-president of the energy company. Status, upon publication of the annual report.
Hydro-Québec ended 2023 with a net profit of 3.3 billion, compared to 4.5 billion in 2022.
In the fourth quarter, i.e. for the months of October, November and December, net profit fell from 953 million in 2022 to 238 million in 2023.
Hydro-Québec had to restrict its exports by a third due to the low level in its reservoirs, which reduced its revenues by 547 million compared to last year. The level of exports is at its lowest in the last ten years.
The price obtained on export markets remained high, at 10.3 cents per kilowatt hour, due to the risk hedging strategy used by Hydro-Québec.
Losses for Innergex
In Quebec, electricity sales brought in 284 million more than in 2022, thanks mainly to the increase in prices. Special contracts with aluminum smelters also generated additional revenue of 109 million.
Compared to 2022, sales in Quebec suffered from the relatively mild temperatures at the start of 2023. In January 2022, average temperatures were 9 degrees higher than those of the previous year, specifies the company.
Hydro-Québec reduced its 20% stake in Innergex Renewable Energy by $284 million to reflect the company’s decline in value. Innergex shares have lost half of their market value over the past year.
Operating expenses increased by $288 million, an increase that Hydro-Québec attributes to work to improve its network.