In line with its projections, Hydro-Québec posts net income of $1.8 billion for the first six months of 2024

Press Release

August 23, 2024

Hydro-Québec’s net income totalled $1,845 million for the first six months of 2024, lower than the $2,687 million recorded for the same period the previous year, when average prices obtained on export markets had reached unprecedented levels.

“These results are in line with what we had anticipated under our prudent energy reserves management, necessary due to the cycle of low runoff. This led to a decrease in electricity sales on external markets compared to the same period in 2023,” said Maxime Aucoin, Executive Vice President – Strategy and Finance. “In the first six months of 2024, runoff was close to historical averages throughout the power system. We will monitor the situation closely and continue to exercise caution.”

Financial highlights of the first six months

• Action Plan 2035: strong growth in investments and financing activities
  • Increase of nearly 30% in investments in property, plant and equipment and intangible assets compared to the previous year
    • Over $2.6 billion invested in six months
    • More than half of the funds allocated to generation, transmission and distribution asset sustainment to ensure service quality
  • Financing activities raised $2.9 billion in the first six months
• Low runoff in 2023: prudent management of energy reserves in 2024
  • Decrease of $919 million in sales outside Québec, due in particular to a 50% decline in volume compared to the previous year
  • Positive impact of the electricity price hedging strategy, but less significant than in 2023
    • Average price obtained (including hedging effect): 9.4¢/kWh, compared to the average market price of 6.4¢/kWh
• Higher revenue from sales in Québec
  • Continued growth in electricity demand, due partly to an increase in the number of customer accounts, primarily in the residential and commercial segments
  • Lower electricity consumption due to mild temperatures in the first quarter of 2024, which was the mildest in 10 years
  • Increased revenue resulting from rate indexations that came into effect on April 1, 2023
    and 2024

Action Plan 2035: Highlights of the first six months

• Improvement of service quality with a 65% decrease in the average number of minutes of service interruption for customers: 318 minutes in 2024 compared to 898 minutes in 2023 (as at July 31)
• Increase of more than 30% in energy saved as part of our energy efficiency initiatives, from 320 GWh to 430 GWh (as at July 31)
• Signature of 4 agreements with Indigenous communities, based on the principle of reconciliation;
• Launch of the Wind Power Development Strategy: Hydro-Québec will play a key role in partnership with First Nations and municipalities
• Announcement of a partnership for the development of the Chamouchouane region in Saguenay–Lac-Saint-Jean, which could accommodate up to 3,000 MW of wind capacity

For more information on Hydro-Québec’s results for the first six months of 2024, visit
www.hydroquebec.com/about/publications-reports/quarterly-bulletin.html.

Information:

Caroline Des Rosiers
Hydro-Québec
relationsmedias@hydroquebec.com
Tel.: 514 289-5005

IBF5