Nalcor Energy Releases Business and Financial Report for 2017

April 19th, 2018

April 19, 2018, St. John’s, NL – Nalcor Energy released its annual Business and Financial Report today, including the Annual Audited Consolidated Financial Statements for the year ended December 31, 2017.

“Nalcor’s overall financial performance in 2017 reflects the hard work and dedication of our employees and their commitment to developing and managing Newfoundland and Labrador’s energy resources for the benefit of the people of the province,” said Stan Marshall, President and CEO.

Financial Highlights:

  • Recorded revenues of $930 million, an increase of $106 million over 2016.
  • Operating profit was $169 million, an increase of $33 million over 2016.
  • Capital expenditures were $3.4 billion as the company continued to make critical investments in the ongoing construction of the Muskrat Falls Project as well as core electricity assets.
  • Total assets continued to grow to $18 billion, compared to $14.1 billion in 2016.

Marshall said that despite challenges, the company continued to move to meet its targets and achieve significant milestones in 2017.

In 2017, the Company implemented changes resulting from its 2016 decision to separate the generation and transmission components of the Muskrat Falls Project, to ensure greater focus to both areas.

“We are focused on a safe and strong finish for the Muskrat Falls Project,” Marshall said. “Due to the hard work of more than 8,200 skilled Newfoundlanders and Labradorians and more than a thousand workers from outside our province, construction of the Muskrat Falls project reached 89 per cent completion.”

During 2017, the Muskrat Falls generation project enclosed the powerhouse and intake structures and started the assembly and installation of the four generating units in the powerhouse. The South and North Spur dams, two of the three dams required to create the Muskrat Falls reservoir, were also completed and significant progress on the North dam was achieved.

In 2017, construction of the Labrador-Island Transmission Link was completed, an important milestone that marked the completion of all transmission construction for the project. Energization of parts of the new transmission system commenced, and the successful integration of the Soldiers Pond AC switchyard into Newfoundland and Labrador Hydro’s electrical grid was completed, bringing us closer to delivering energy from Labrador to the island for the first time.

Hydro continued to invest responsibly in the province’s electricity system by building critical new transmission infrastructure to increase system resiliency and improve reliability. This included a substantial upgrade to the Bay d’Espoir-to-Avalon Peninsula transmission corridor with the completion of a new transmission line and the ongoing construction of a transmission line from the Hardwoods terminal station to Soldiers Pond.

The Oil and Gas business continued its offshore exploration activity, resulting in significant contributions in the province’s offshore oil and gas industry. After five years of construction, the Hebron platform was towed to field in June and produced its first oil in November. Construction also started on the West White Rose project in late 2017, with first oil expected in late 2022. In October, Bull Arm released a Request for Proposals for a new tenant for the site that will maximize the benefit of this asset for the people of our province.

“We take a great deal of pride in our province and know that people are counting on us to provide safe and reliable electricity so our communities can thrive. The achievements we see today are possible thanks to our dedicated and knowledgeable employees as well as our commitment as an organization to building a sustainable future for Newfoundlanders and Labradorians. I am proud of the work they do, their commitment to safety, and the concern they show for each other and the environment,” Marshall said.

Nalcor will provide a further overview of 2017 business and financial results at its Annual Meeting taking place today, Thursday, April 19 at 10:30 a.m. at the Holiday Inn in St. John’s. To register, please visit www.nalcorenergy.com or email info@nalcorenergy.com. The meeting will also be webcast live on Nalcor’s site.

Nalcor’s 2017 Business and Financial Report is available online at www.nalcorenergy.com.

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Media Contact:

Deanne Fisher, General Manager, Corporate Communications and Stakeholder Engagement
t: 709.733-5299      I    c: 709.697-3418    I    e: deannefisher@nalcorenergy.com