Nalcor Energy Releases First Quarter Financial Results

May 11th, 2018

May 11, 2018, St. John’s, NL – Nalcor Energy reported its financial results for the first quarter of 2018 today.

“In the first quarter of 2018 we continued to build on the great success in 2017 and remained focused on a safe and strong finish for the Muskrat Falls Project. We are on the cusp of a significant transformation of our electricity system. Our hardworking, capable team is operationalizing the most ambitious energy project in the history of our province.”

Stan Marshall, President and CEO

First Quarter Financial Highlights

  • Profit for the quarter of $90 million compared to $57 million for the same period in 2017, an increase of $33 million.
  • Funds from operations for the quarter of $138 million, an increase of $38 million over the same period in 2017.
  • Earnings before interest, taxes, depreciation, depletion, amortization and accretion (EBITDA) for the period of $156 million, an increase of $41 million compared to the same period in 2017.
  • Capital expenditures, excluding the Maritime Link for the quarter of $304 million, a decrease of $244 million over the same period in 2017.
  • Total assets of $18.1 billion, compared to $18.0 billion as at December 31, 2017.
  • Debt to capital for the quarter of 66 per cent is comparable to December 31, 2017.

First Quarter Earnings and Capital Expenditures

Profit for the three months ending March 31, 2018 was $90 million, compared to $57 million for the same period in 2017. The primary factors contributing to the $33 million increase included:

  • the outcomes of the 2013 GRA order;
  • an increase in oil revenue due to higher prices and volume; and
  • higher electricity prices for export sales.

The increase in overall profit was offset partially by a decrease in Bull Arm Fabrication’s profit as a result of the conclusion of the sublease of the site, higher exploration and evaluation costs in Oil and Gas and increased depreciation, depletion and amortization in Oil and Gas and Hydro Regulated.

Capital expenditures (excluding Maritime Link) for the three months ending of $304 million were lower than the same period in 2017, primarily due to decreases in capital incurred in LCP Transmission, Muskrat Falls, Hydro Regulated and Oil and Gas.

Other Recent Developments

During the first quarter of 2018, construction of the Muskrat Falls Project continued to progress. Concrete placement for the North Dam at the Muskrat Falls generation site resumed and is on track to be complete by the end of the year. Installation of the turbine and generator components at the Muskrat Falls Generation site also continued during the first part of the year.

The transmission component of the Project continued its success in the first quarter of 2018. Teams from Nalcor and Hydro, along with Emera and Nova Scotia Power, successfully energized the Maritime Link transmission line to the island. Energy was delivered over the Maritime Link transmission line to the island electricity customers for the first time in February. In March, the new switchyard in Churchill Falls was safely energized. The Labrador-Island Transmission Link is on track to be energized this summer.

Hydro continued to work on a new section of transmission line from the Hardwoods terminal station just outside St. John’s to the new station at Soldiers Pond. Tower erection and wire stringing is ongoing and the line is on track for completion later this year. Hydro has moved into its annual maintenance program, with work underway across the system, including preventative and corrective maintenance, inspections, in addition to capital projects.

In the first quarter of the year, steps were taken to formalize the new Newfoundland & Labrador System Operator as the independent operator and the adoption of an open access framework for the province’s high-voltage transmission system, which essentially recognizes our broader participation in importing and exporting electricity as we move to an interconnected system.

Hydro’s General Rate Application process to set electricity rates for 2018 and 2019 is also well underway. The public hearings began on April 16 for a couple of weeks and will resume in July.

The preparation for the transition of Oil and Gas as a stand-alone Crown corporation, as announced by the Province on March 27th, has begun and will continue throughout 2018. Bull Arm Fabrication has entered into negotiations with two of the four companies who submitted proposals as part of a Request for Proposals to secure a new tenant for the site.

A copy of the quarterly report and a recording of the webcast will be available at

Media Contact:

Deanne Fisher

Corporate Communications and Stakeholder Engagement

t: 709.733.5299     c: 709.697.3418     e: