Nalcor Energy reports first quarter results

May 13th, 2016

Nalcor Energy released its financial update for the first quarter ended March 31, 2016 today.

Key First Quarter Financial Highlights

– YTD profit of $28.0 million, a decrease of $1.3 million over the first quarter of 2015, largely as a result of an increased loss in Hydro Regulated and offset partially by lower operating costs.
– Operating profit of $35.0 million, $5.7 million higher than the same period in 2015.
– YTD capital expenditures of $558.9 million, an increase of approximately 13 per cent over the same period in 2015.
– Total assets grew $0.2 million during the first quarter to a total of $12.5 billion.
– Debt to capital ratio of 64.1 per cent as at March 31, 2016.
– Funds from operations for the period of $66.5 million, a $13.0 million improvement compared to the same period in 2015.
– EBITDA for the period of $77.7 million, a $10.3 million improvement compared to the same period in 2015.

First Quarter Earnings and Capital Expenditures

Profit for the first quarter totaled $28.0 million, compared to $29.3 million for the same period in 2015. This was due mainly to an increased loss in Hydro Regulated, attributable to higher gas turbine fuel costs and adjustments related to the Prudence Order received from the Public Utilities Board (PUB), and was partially offset by lower operating costs. Operating profit of $35.0 million was $5.7 million higher year-over-year for the first quarter, due to lower overall operating costs, increased offshore oil production, lower power purchased in Hydro Regulated, and gains on the settlement of commodity swaps. This increase was partially offset by lower realized oil prices, higher costs associated with gas turbine fuel, decreased revenue and increased depreciation, depletion and amortization.

Capital expenditures for the first quarter totaled $558.9 million. Nalcor’s assets continue to grow, totaling $12.5 billion as at March 31, 2016, an increase of $0.2 billion from the end of 2015. The company’s Statement of Financial Position remains strong, with a debt to capital ratio of 64.1 per cent as at March 31, 2016.

Regulatory Proceedings

Final arguments related to Hydro’s General Rate Application (GRA) were filed during the quarter and Hydro awaits a final GRA order from the PUB. In addition, during the quarter, Hydro filed an application to defer additional 2016 Standby Fuel costs as a result of low hydrology. The outcome of both of these applications will have a significant financial impact for Hydro in 2016.

Nalcor will continue to reinvest revenue generated, along with equity contributions from the Government of Newfoundland and Labrador, into the province’s energy assets to return long-term value.

Nalcor’s first quarter webcast will take place today at 11:00 a.m. NDT. A copy of the Q1 report and a recording of the webcast will be available at www.nalcorenergy.com.

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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.

Media Contact:
Deanne Fisher
Corporate Communications and Stakeholder Engagement
t: 709.733.5299
c: 709.697.3418
e: deannefisher@nalcorenergy.com