BC Hydro announces first quarter net income of $88-million
VANCOUVER – BC Hydro today announced its first quarter financial results for fiscal 2009, reporting a consolidated net income of $88-million for the quarter ended June 30, 2008, $83-million higher than the previous year.
The increase in consolidated net income is due in part to new customers, increased trade income, and lower finance charges compared to the prior year.
"Our results for the quarter met our expectations,” said Bob Elton, BC Hydro President and CEO. “Our capital expenditures increased significantly as we continue to focus on expanding generation and distribution capacity, upgrade aging assets, and improve system reliability."
Key financial highlights include:
- Domestic revenues were $713-million, $47-million higher than the previous year, due to strong demand in the residential sector (29,649 new customers were added) and higher average customer rates. Colder weather also contributed to higher consumption. This was partially offset by decreased revenue from the industrial sector due to the closure of three pulp mills.
- BC Hydro experienced a 19 per cent decrease in hydro generation compared to the same period last year due to lower water inflows and unplanned equipment failures at two major units in April, causing BC Hydro to purchase market energy to meet domestic requirements. However, higher water inflows in June enabled BC Hydro to take advantage of lower market prices, build storage levels of the reservoirs and end the quarter with a combined storage of 106 per cent of average.
- Operating costs were $41-million higher than the previous year, primarily as a result of demand side management costs as part of an increased focus on energy conservation, higher maintenance costs to address the equipment failures in April, and higher levels of work in vegetation maintenance to improve system resiliency.
- Capital expenditures of $296-million were $74-million higher than the previous year, due to work on the fifth Revelstoke turbine unit, stator and rotor pole replacements, and reinforcement work on the Vancouver Island transmission connection to meet growing customer demand.
For an archive of quarterly and annual reports, see the reports and performance section of bchydro.com.
Contact:
| Dag Sharman |
| Media Relations |
| Phone: 604 623 4022 |
| dag.sharman@bchydro.com |
Source: BC Hydro News