OPG reports Q3 net income attributable to the shareholder of $118 million before extraordinary gain

Press Release

[Toronto]: – Ontario Power Generation Inc. (OPG or Company) today reported net income attributable to the Shareholder before extraordinary gain for the three months ended Sept. 30, 2014 of $118 million compared to $30 million for the same quarter in 2013. The increased earnings were mainly a result of increased nuclear generation, lower operations, maintenance and administration (OM&A) expenses, and lower salary costs due to headcount reductions. As well, the increased earnings reflect spending restraints implemented over the past three years under the company’s Business Transformation program.

Net income attributable to the Shareholder before extraordinary gain for the nine months ended Sept. 30, 2014 was $475 million compared to $131 million for the same period in 2013.

Tom Mitchell, OPG’s President and CEO, said the improved financial results “illustrate the success of our determined and detailed business transformation. “In addition to successfully ending the use of coal in our plants and operating a virtually emissions-free generation business, we have also lowered spending and achieved operational efficiencies by implementing improvements to our systems and processes. This has enabled OPG to reduce the number of employees from ongoing operations by about 2,000 to below 10,000. This was only accomplished with the dedicated efforts of all members of OPG staff.”

Mr. Mitchell stressed that, “The positive financial results also include the impact of onetime events, including the extremely cold winter, and a gain in the value of the fund we have set aside to pay for the long-term storage of used nuclear fuel. OPG continues to generate electricity at a significantly lower price than the average of all other electricity generators.”

Net income attributable to the Shareholder after extraordinary gain for the third quarter of 2014 was $361 million compared to $30 million for the same quarter in 2013. The increase primarily reflects the recognition of an extraordinary gain of $243 million related to the forty-eight previously unregulated hydroelectric facilities prescribed for rate regulation effective July 1, 2014. The gain relates to deferred income taxes expected to be recovered from customers through future regulated prices in respect of these newly regulated facilities.

Read More: http://www.opg.com/about/finance/Documents/2014_Q3_FullReport.pdf

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