BC Hydro announces first quarter results
VANCOUVER – BC Hydro today announced its first quarter financial results for fiscal 2010, reporting a consolidated net income of $74 million for the quarter ended June 30, 2009, which was $14 million lower than the previous year.
"The global economic recession affected our results for this quarter," said Bob Elton, BC Hydro President and CEO. "The downturn resulted in lower demand for electricity from the industrial sector and lower energy trading results offset by lower prices for energy purchases compared to the same period in the previous year. However, we continue to remain committed to our long term capital improvement plan of upgrading aging assets, improving system reliability, and expanding generation and distribution capacity."
Key financial highlights include:
- Domestic revenues were $696 million – $17 million lower than the previous year as a result of decreased revenue from the large industrial sector due to closures of pulp and paper operations in the forestry sector, and weaker demand from the light industrial and commercial sector as a result of the current economic recession.
- Energy trading results were significantly lower than in the previous year due to lower price spreads between the Northwest and California and between B.C. and Alberta.
- BC Hydro experienced a four per cent decrease in hydro generation over the same period in the prior year due to lower water inflows caused by lower winter snow-pack levels and a relatively dry spring season. Current low market prices for energy have enabled BC Hydro to purchase energy to meet domestic requirements at a lower cost than in the prior year and to preserve reservoir storage levels. In the first quarter of the previous year, water inflows were delayed by a very late freshet and BC Hydro was required to purchase a greater volume of market energy at significantly higher prices in that period.
- Capital expenditures of $363 million in the quarter were $63 million higher than the previous year, primarily due to increased spending on the replacement and expansion of generation facilities.
Contact:
Dag Sharman
Senior Media Relations Advisor
BC Hydro
Phone: 604 623 4022