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December 1, 2014, St. John’s, NL – Ed Martin, President and Chief Executive Officer and Derrick Sturge, Vice President and Chief Financial Officer presented Nalcor’s 2014 third quarter financial update and business accomplishments during the Company’s third quarter results call held today.
As part of Nalcor’s responsibility to the people of Newfoundland and Labrador, the company has implemented quarterly financial reporting. The report released today is part of Nalcor’s on-going effort to bring greater clarity, openness and transparency about its business operations and financial results. “Since 2007 when Nalcor was created the company’s asset base has expanded from $2 billion to $10.2 billion and revenue has increased by fifty per cent while maintaining a relentless commitment to safety and improving operating performance and asset management programs in our operating business lines,” said Martin.
Business focus this year includes: continuing a relentless focus on worker and public safety; advancing global interest in Offshore NL exploration; continuing investment to ensure a reliable provincial electricity supply; continuing investment in the reliability of the Churchill Falls plant for the future; continuing management and oversight of the construction of the Muskrat Falls Project as well as the required integration and organizational structure work to bring the project online in 2017; and looking forward to the future, during 2014, Nalcor also formed an Energy Marketing subsidiary to sell Newfoundland and Labrador’s surplus energy to export markets.
Nalcor’s net income to September 30, 2014 of $ 45.8 million has been primarily impacted by a loss of $27.2 million in Newfoundland and Labrador Hydro. This is largely because current electricity rates are not reflective of the cost to provide service and therefore, Hydro has been incurring losses year-to-date. The company has filed three successive applications with the provincial electricity regulator to obtain rate relief since 2013 and a fourth application was submitted in November 2014. Earnings for 2014 will improve if required rate changes are approved.
The forecast for 2015 remains strong with electricity rate changes expected; however, business units with higher commodities risk continue to be monitored closely. “Public accountability is a cornerstone of our corporate culture. Our shareholders are the people of this province and we will continue to serve their best interests while being open and transparent through our operations and financial reporting,” said Martin.
Quarterly results presentations will be available at nalcorenergy.com. Recordings of the quarterly call and webinar including the question and answer period will be posted to the web site the week of December 5.
About Nalcor Energy
Nalcor Energy’s business includes the development, generation, transmission and sale of electricity; the exploration, development, production and sale of oil and gas; industrial fabrication and energy marketing. Focused on sustainable growth, the company is leading the development of the province’s energy resources and has a corporate-wide framework which facilitates the prudent management of its assets while continuing an unwavering focus on the safety of its workers and the public. Nalcor has six lines of business: Newfoundland and Labrador Hydro, Churchill Falls, Oil and Gas, Lower Churchill Project, Bull Arm Fabrication and Energy Marketing.
Corporate Communications and Stakeholder Engagement
e: [email protected]
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